The Environmentally Conscious Manufacturing Technology Transfer and Training Initiative (ECMT3I) is a cooperative effort among education and research institutions in New Mexico to analyze problems in transferring environmental technologies from Department of Energy laboratories to small and medium enterprises (SME's). To identify and analyze environmental concerns, the ECMT3I conducted two surveys, one of state environmental regulators, and another of manufacturers and private research and development firms in New Mexico. Study findings, based on responses from 5 state and city environmental departments and 100 local SME's, included the following: (1) in general, business owners demonstrated great concern over any negative effects their manufacturing operations may have on the environment, and agreed with the need for environmental regulations; (2) they also indicated, however, that while they wanted to comply with regulations, they did not always fully understand them or know where to get help; (3) in general, owners of businesses with less than 20 employees did not know which regulations applied to them, which substances were hazardous, had never been visited by an environmental regulator, and assumed they were operating within the law; (4) most companies developed environmental, safety and health programs using in-house resources; and (5) community colleges, universities, and federal labs were not viewed as sources of training, information, or problem solving. Extensive data tables and the survey instruments are appended. (KP)