We describe a deformation of the observable algebra of quantum gravity
in which the loop algebra is extended to framed loops. This allows an
alternative nonperturbative quantization which is suitable for descri
bing a phase of quantum gravity characterized by states which are norm
alizable in the measure of Chem-Simons theory. The spinor identities a
re extended to a set of relations which are governed by the Kauffman b
racket so that the spin network basis is deformed to a basis of SU(2)(
q) spin networks, This deformation parameter, q, is e(iHBAR2G2 Lambda/
6), where Lambda is the cosmological constant. Corrections to the acti
ons of operators in nonperturbative quantum gravity may be readily com
puted using recoupling theory; the example of the area observable is t
reated here. Finally, eigenstates of the q-deformed Wilson loops are c
onstructed, which may make possible the construction of a q-deformed c
onnection representation through an inverse transform.