Adjusted     Executive
                             Appropriation       Request               Percent
                                   2001-02       2002-03        Change  Change



AGENCY SUMMARY
  Special Rev.-Fed.                      0     2,500,000    2,500,000     --  
  Special Rev.-Other            14,656,000    14,656,000            0    0.00%
  Capital Projects Fund         15,250,000    13,250,000   (2,000,000) -13.11%
  Clean Water-Clean Air     
    Implementation Fund            117,000       117,000            0    0.00%
  Total for AGENCY SUMMARY:     30,023,000    30,523,000      500,000    1.67%


STATE OPERATIONS
  Special Rev.-Fed.                      0     2,500,000    2,500,000     --  
  Special Rev.-Other            14,656,000    14,656,000            0    0.00%
  Total for STATE OPERATIONS:   14,656,000    17,156,000    2,500,000   17.06%

Planning and Operations
  Special Rev.-Fed.                      0     2,500,000    2,500,000     --  
  Total for Program:                     0     2,500,000    2,500,000     --  

Research, Development and Demonstration
  Special Rev.-Other            14,656,000    14,656,000            0    0.00%
  Total for Program:            14,656,000    14,656,000            0    0.00%

CAPITAL PROJECTS
  Capital Projects Fund         15,250,000    13,250,000   (2,000,000) -13.11%
  Clean Water-Clean Air     
    Implementation Fund            117,000       117,000            0    0.00%
  Total for CAPITAL PROJECTS:   15,367,000    13,367,000   (2,000,000) -13.01%

Western New York Nuclear Service Center Program
  Capital Projects Fund         15,250,000    13,250,000   (2,000,000) -13.11%
  Total for Program:            15,250,000    13,250,000   (2,000,000) -13.11%


Clean Water/Clean Air Administration
  Clean Water-Clean Air     
    Implementation Fund            117,000       117,000            0    0.00%
  Total for Program:               117,000       117,000            0    0.00%


                                                                    
                                                                    
      


                          BUDGET HIGHLIGHTS
                   (Executive Budget: pp. 185-186)

The New York State Energy Research and Development Authority (NYSERDA)
is a public benefit corporation responsible for the management of
energy research, development and demonstration programs which are
funded by assessments on gas and electric utilities.  NYSERDA also
administers Federal grant programs related to energy efficiency,
issues tax-exempt bonds on behalf of private energy supply companies
for environmental improvements, and carries out the programmatic and
regulatory functions of the former State Energy Office.  In addition,
NYSERDA administers the Federal Petroleum Overcharge Recovery Program
(POCR) and the Systems Benefit Charge (SBC) that was established by
the Public Service Commission to fund energy, environmental and low-
income customer programs.  Finally, NYSERDA manages the former nuclear
fuel reprocessing plant at West Valley in Cattaraugus County and the
Saratoga Technology and Energy Park in Saratoga County.  

The Authority is included in the Transportation and Economic
Development appropriation bill.

State Operations

The Executive recommends a Special Revenue Other Fund appropriation
of $14,656,000 in State Fiscal Year (SFY) 2002-03 for the Energy,
Research, and Development Program, reflecting no change from the SFY
2001-02 appropriation level.  The Governor proposes a new $2,500,000
appropriation to support the Federal Petroleum Overcharge Recovery
(POCR) Program in the Planning and Operations Program.  These funds
are transferred to the Power Authority of the State of New York and
utilized for energy efficiency programs.  

Capital Projects

The Executive recommends a Capital Projects appropriation of
$13,250,000 in SFY 2002-03 for costs related to the Western New York
Nuclear Service Center at West Valley, a decrease of $2,000,000 from
SFY 2001-02.  This ongoing project entails the vitrification of spent
nuclear fuel and is funded primarily (90 percent) by the Federal
Government.  The decrease in the State's 10 percent matching share is
driven by federal cost estimates.

In addition, the Executive proposes to maintain an appropriation of
$117,000 from the Clean Water/Clean Air Implementation Fund to support
personnel costs associated with the Clean Fuel Buses component of the
1996 Clean Water/Clean Air Bond Act.  

Article VII Proposals

The Executive proposes Article VII legislation authorizing the use of
Federal POCR funds for energy efficiency projects.  Additionally, the
Executive proposes Article VII legislation authorizing the use of
utility assessments collected pursuant to Section 18-a of the Public
Service Law to support the Authority's operations.