To amend the Act of August 21, 1957, to allocate funds from certain electric power sales from the Niagara Power Project in New York to capital needs of Western New York, and for other purposes.

Authorizes Niagara, Erie, and Chautauqua Counties, New York, to establish a Regional Development Corporation.

Requires submission to the Federal Energy Regulatory Commission (FERC) for approval of any agreement to establish the Corporation.

Limits the use of Corporation funds to construction, engineering, architecture, and related projects for the development of the waterfront in Niagara, Chautauqua, and Erie Counties, the Erie Canal Harbor Development Corporation, the Olmsted Park system, regional cultural institutions in Niagara, Chautauqua, and Erie Counties, downtown Niagara Falls redevelopment initiatives, and the Buffalo Niagara Medical campus.

Requires transfer to the Corporation by the New York Power Authority of all unused proceeds from the sale of electric power generated by the Niagara Power Project and allocated to the replacement power and expansion power programs.