A bill granting the consent of Congress to the compact between the States of New York and New Jersey providing for the coordination, facilitation, promotion, preservation and protection of trade and commerce in and through the Port of New York District through the financing and effectuation of industrial development projects.
PL 96-163 (H.R.4943), enacted 12/28/1979

93 STAT. 1242 
PUBLIC LAW 96-163—DEC. 28, 1979 
Public Law 96-163 
96th Congress 
An Act 
Dec. 28,1979 
[H.R. 4943] 
New York-New 
Jersey Port 
Authority 
Compact. 
Congressional 
consent. 
Findings and 
determinations. 
Granting the consent of Congress to the compact between the States of New York 
and New Jersey providing for the coordination, facilitation, promotion, preserva-
tion, and protection of trade and commerce in and through the Port of New York 
District through the financing and effectuation of industrial development 
projects. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, That the consent of 
Congress is given to an agreement or compact amendatory of and 
supplemental to the Compact between the States of New York and 
New Jersey creating the Port of New York District and establishing 
the Port of New York Authority which agreement or compact has 
been agreed to by such States effective August 24, 1978, and is 
substantially as follows: 
"SECTION 1. The states of New York and New Jersey hereby find 
and determine: 
"a. that to prevent further deterioration of the economy of the port 
district and thereby to promote, preserve and protect trade and 
commerce in and through the port of New York district as defined in 
the compact between the two states dated April thirty, nineteen 
hundred twenty-one (hereinafter called the port district), it is the 
policy of each of the two states actively to promote, attract, encourage 
and develop economically sound commerce and industry through 
governmental action; 
"b. that in order to preserve and protect the position of the port of 
New York as the nation's leading gateway for world commerce, it is 
incumbent on the states of New York and New Jersey to make every 
effort to insure that the port receives its rightful share of interstate 
and international commerce generated by the manufacturing, indus-
trial, trade and commercial segments of the economy of the nation 
and of the port district; 
"c. that since nineteen hundred fifty the number of available jobs 
in the port district, particularly within the older central cities 
thereof, has decreased, thereby resulting in the underutilization of 
available land and other resources, the erosion of the port district's 
tax bgises and a rate of unemplojnnent substantially in excess of the 
national average; 
"d. that in order to preserve the port district from further economic 
deterioration, adequate industrial development projects and facilities 
must be provided, preserved and maintained to attract and retain 
industry within the port district; 
"e. that a number of new industrial development projects and 
facilities should be organized into industrial parks or districts; 
"f. that the construction of such industrial parks or districts shall 
conform to the policies of the two states with respect to affirmative 
action and equal employment opportunities; 
"g. that providing port district industrial development projects and 
facilities is in the public interest and involves the exercise of public 
and essential governmental functions which may include appropriate 
PUBLIC LAW 96-163-DEC. 28, 1979 
93 STAT. 1243 
and reasonable limitations on competition and which must be per-
formed by the two states, or any municipality, public authority, 
agency or commission of either state and by a joint agency of the two 
states to accomplish the purposes of this act; 
"h. that it is an objective of the two states, acting through the port 
authority, to facilitate reemplo3mient of residents of the older cities 
through job training programs and employment opportunity prior-
ities in connection with industrial development parks in their respec-
tive cities; 
"i. that the acquisition and the use by such joint agency of 
abandoned, undeveloped or underutilized land or land owned by 
governmental entities within the port district for the generation of 
jobs and to reduce the hazards of unemployment would promote, 
preserve and protect the industry, trade and commerce of the port 
district, and will materially assist in preserving for the two states and 
the people thereof the material and other benefits of a prosperous 
port community; 
"j. that the collection, disposal and utilization of refuse, solid waste 
or waste resulting from other treatment processes is an activity of 
concern to all citizens within the port district, that the health, safety 
and general welfare of the citizens within the port district require 
efficient and reasonable collection and disposal services and efficient 
utilization of such refuse, solid waste or waste resulting from other 
treatment processes with adequate consideration given to regional 
planning and coordination, and, therefore, that the construction and 
operation of any port district industrial development project and 
facility should conform to the environmental and solid waste disposal 
standards and state and county plans therefor in the state in which 
such project or facility is located; 
"k. that the dedication by the municipalities of the port district of 
refuse, solid waste or waste resulting from other treatment processes 
to resource recovery to permit the generation of lower priced energy 
and the recovery of useful materials, together with the commitment 
by such municipalities to pay fees to permit the delivery and removal 
after processing of such refuse or solid waste at rates and for periods 
of time at least sufficient to assure the continued furnishing of such 
lower priced energy and material is in the public interest and would 
be a major incentive for the attraction and retention of industry 
within the port district; 
"1. that the port authority of New York and New Jersey (herein-
after called the port authority), which was created by agreement of 
the two states as a joint agent for the development of terminal, 
transportation and other facilities of commerce of the port district 
and for the promotion and protection of the commerce of the port, is a 
proper agency to act in their behalf (either directly or by any 
subsidiary corporation) to finance and effectuate such industrial 
development projects and facilities; 
"m. that it is desirable for the port authority, after consultation 
with the governing body of each municipality and within the city of 
New York the appropriate community board or boards and elsewhere 
another government entity or entities designated by such municipal-
ity in which industrial development projects or facilities are proposed 
to be located and with other persons, including but not limited to 
private real estate developers, to prepare and adopt a master plan 
providing for the development of such industrial development proj-
ects and facilities in the port district, which plan shall give considera-
tion to the extent of unemployment and the general economic 
conditions of the respective portions of the port district and shall 
93 STAT. 1244 
PUBLIC LAW 96-163—DEC. 28, 1979 
include among other things the locations and the nature and scope of 
such projects and facilities as may be included in the plan; 
"n. that the undertaking of such industrial development projects 
and facilities by the port authority has the single object of and is part 
of a unified plan to aid in preserving the economic well-being of the 
port district and is found and determined to be in the public interest; 
"o. that no such port district industrial development projects and 
facilities are to be constructed if the sole intent of the construction 
thereof would be the removal of an industrial or manufacturing plant 
of an occupant of such projects and facilities from one location to 
another location or in the abandonment of one or more plants or 
facilities of such occupant, unless such port district industrial devel-
opment projects and facilities are reasonably necessary to discourage 
such occupant from removing such plant or facility to a location 
outside the port district or are reasonably necessary to preserve the 
competitive position of such project occupant in its industry; 
"p. that no such port district industrial development projects or 
facilities are to be constructed unless and until the port authority has 
entered into an agreement or agreements with the municipality in 
which any such project or facility is to be located with respect to 
payments in lieu of real estate taxes and the location, nature and 
scope of any project or facility; 
"q, that, subject to entering into said agreement or agreements, the 
port authority should have the ability to acquire, lease, vacate, clear 
and otherwise develop abandoned, undeveloped or underutilized 
property or property owned by governmental entities within the port 
district and to finance and construct industrial development projects 
and facilities. 
Definitions. 
"§ 2. The following terms as used in this act shall have the following 
meanings: 
"a. 'Bonds' shall means bonds, notes, securities or other obligations 
or evidences of indebtedness; 
"b. 'Effectuation' of any project or facility or part of any such 
project or facility shall include but not be limited to its establishment, 
acquisition, construction, development, maintenance, operation, im-
provement (by way of betterments, additions or otherwise) and 
rehabilitation by the port authority or any other person and the 
provision of funds therefor through the issuance of obligations, the 
making or granting of loans or otherwise; 
"c. 'General reserve fund statutes' shall mean chapter forty-eight 
of the laws of New York of nineteen hundred thirty-one as amended, 
and chapter five of the laws of New Jersey of nineteen hundred 
thirty-one as amended, and 'general reserve fund' shall mean the 
general reserve fund of the port authority authorized by said statutes; 
"d. 'Governing body' shall mean the board or body vested with the 
general legislative powers of the municipality in which an industrial 
development project or facility will be financed or effectuated pursu-
ant to this act; 
"e. 'Industrial development project or facility' or 'port district 
industrial development project or facility' shall mean any equipment, 
improvement, structure or facility or any land, and any building, 
structure, facility or other improvement thereon, or any combination 
thereof, and all real and personal property, located within the New 
York portion of the port district or within a municipality in the New 
Jersey portion of the port district which qualified for state aid under 
the provisions of P.L., 1971, C. 64 as most recently supplemented by 
P.L., 1978, C. 14 or which may hereafter qualify for such aid, 
including, but not limited to, machinery, equipment and other 
PUBLIC LAW 96-163—DEC. 28, 1979 
93 STAT. 1245 
facilities deemed necessary or desirable in connection therewith, or 
incidental thereto, whether or not now in existence or under con-
struction, which shall be considered suitable by the port authority for 
manufacturing, research, non-retail commercial or industrial pur-
poses within an industrial park, or for purposes of warehousing or 
consumer and supporting services directly related to any of the 
foregoing or to any other port authority project or facility; and which 
may also include or be an industrial pollution control facility or a 
resource recovery facility, provided that no such industrial develop-
ment project or facility may include or be a facility used for the 
storage of chemicals, fuel or liquified natural gas unless incidental to 
the effectuation of such industrial development project or facility; 
"f. 'Industrial pollution control facility' shall mean any equipment, 
improvement, structure or facility or any land, and any building, 
structure, facility or other improvement thereon, or any combination 
thereof, and all real and personal property, located within the port 
district, including, but not limited to, machinery, equipment and 
other facilities deemed necessary or desirable in the opinion of the 
port authority in connection therewith, or incidental thereto, 
whether or not now in existence or under construction, having to do 
with or the end purpose of which is the control, abatement or 
prevention of land, sewer, water, air, noise or general environmental 
pollution deriving from the operation of industrial, manufacturing, 
warehousing, commercial and research facilities, including, but not 
limited to any air pollution control facility, noise abatement facility, 
water management facility, waste water collecting system, waste 
water treatment works, sewage treatment works system, sewage 
treatment system or solid waste disposal facility or site, provided that 
no such industrial pollution control facility may include or be used as 
a site for organic landfill or be of a character or nature generally 
furnished or supplied by any other governmental entity where such 
industrial pollution control facility is located without the consent of 
such governmental entity; 
"g. 'Municipality' means a city, county, town or village all or any 
part of which is located within the New York portion of the port 
district, or a city, county, town, borough or township all or any part of 
which is located within the New Jersey portion of the port district; 
"h. 'Person' means any person, including individuals, firms, part-
nerships, associations, societies, trusts, public utilities, public or 
private corporations, or other legal entities, including public or 
governmental bodies, which may include the port authority, as well 
as natural persons, 'Person' shall include the plural as well as the 
singular; 
"i. 'Port authority' shall include the port authority and any 
subsidiary corporation now or hereafter incorporated for any of the 
purposes of this act; provided, however, as used in sections 4 and 5 of 
this act it shall not include any such subsidiary corporation; 
"j. 'Purposes of this act' shall mean the effectuation of industrial 
development projects and facilities and of each project or facility 
constituting a portion thereof and of each part of each project or 
facility, and purposes incidental thereto; 
"k. 'Real property' shall mean lands, structures, franchises and 
interests in land, including air space and air rights, waters, lands 
under water, wetlands and riparian rights, and any and all things 
and rights included within the said term, and includes not only fees 
simple absolute but also any and all lesser interests, including but not 
limited to easements, rights-of-way, uses, leases, licenses and all 
other incorporeal hereditaments and every estate, interest or right. 
93 STAT. 1246 
PUBLIC LAW 96-163—DEC. 28, 1979 
legal or equitable, including terms for years and liens thereon by way 
of 
judgments, mortgages or otherwise; 
"1. 'Resource recovery facility' shall mean any equipment, improve-
ment, structure or facility or any land, and any building, structure, 
facility or other improvement thereon, or any combination thereof, 
and all real and personal property located within the port district, 
including, but not limited to, machinery, equipment and other 
facilities deemed necessary or desirable in the opinion of the port 
authority in connection therewith, or incidental thereto, whether or 
not now in existence or under construction, for the disposal of refuse 
or other solid wastes or wastes resulting from other treatment 
processes and for the recovery and sale or use of energy and other 
resources from such refuse or other solid wastes or wastes resulting 
from other treatment processes, provided that no such resource 
recovery facility may include or be used as a site for organic landfill; 
"m. 'Surplus revenues' from any facility shall mean the balance of 
the revenues from such facility (including but not limited to the 
revenues of any subsidiary corporation incorporated for any of the 
purposes of this act) remaining at any time currently in the hands of 
the port authority after the deduction of the current expenses of the 
operation and maintenance thereof, including a proportion of the 
general expenses of the port authority as it shall deem properly 
chargeable thereto, which general expenses shall include but not be 
limited to the expense of protecting and promoting the commerce of 
the port district, and after the deduction of any amounts which the 
port authority may or shall be obligated or may or shall have 
obligated itself to pay to or set aside out of the current revenues 
therefrom for the benefit of the holders of any bonds legal for 
investment as defined in the general reserve fund statutes; 
"n. 'Surplus revenues of port district industrial development pro-
jects or facilities' shall mean the surplus revenues of all industrial 
development projects or facilities effectuated pursuant to the terms 
of this act. 
Port authority's 
"§ 3. (a) In furtherance of the aforesaid findings and determina-
^tii"' tion 
tions, in partial effectuation of and supplemental to the compre-
oriza ion. 
hensive plan heretofore adopted by the two said states for the 
development of the said port district, and subject to the preparation 
and adoption of the plan authorized in paragraph (b) of this section 
three and the execution of an agreement or agreements authorized by 
sections eleven and twelve hereof, the port authority is hereby 
authorized, empowered and directed to establish, acquire, construct, 
effectuate, develop, own, lease, maintain, operate, improve, rehabili-
tate, sell, transfer and mortgage projects or facilities herein referred 
to as port district industrial development projects or facilities, as 
defined in this act. 
"The port authority is hereby authorized and empowered to estab-
lish, levy and collect such rentals, fares, fees and other charges as it 
may deem necessary, proper or desirable in connection with any 
facility or part of any facility constituting a portion of any port 
district industrial development project or facility and to issue bonds 
for any of the purposes of this act and to provide for pasnnent thereof, 
with interest thereon, and for the amortization and retirement of 
such bonds, and to secure all or any portion of such bonds by a pledge 
of such rentals, fares, fees, charges and other revenues or any part 
thereon (including but not limited to the revenues of any subsidiary 
corporation incorporated for any of the purposes of this act) and to 
secure all or any portion of such bonds by mortgages upon any 
"•• 
property held or to be held by the port authority for any of the 
PUBLIC LAW 96-163—DEC. 28, 1979 
93 STAT. 1247 
Industrial 
development, 
master plan. 
purposes of this act, and for any of the purposes of this act to exercise 
all appropriate powers heretofore or hereafter delegated to it by the 
states of New York and New Jersey, including, but not limited to, 
those expressly set forth in this act. The surplus revenues of port 
district industrial development projects or facilities may be pledged 
in whole or in part as hereinafter provided. 
"(b) The port authority is hereby authorized to initiate studies and 
prepare and adopt a master plan providing for the development of 
port district industrial development projects and facilities which 
shall include the location of such projects and facilities as may be 
included in the plan and shall to the maximum extent practicable 
include inter alia a general description of each of such projects and 
facilities, the land use requirements necessary therefor, and esti-
mates of project costs, of project employment potential and of a 
schedule for commencement of each such project. Prior to adopting 
such master plan, the port authority shall give written notice to, 
afford a reasonable opportunity for comment, consult with and 
consider any recommendation made by the governing body of munici-
palities and within the city of New York the appropriate community 
board or boards and elsewhere another governmental entity or 
entities designated by such municipality in which industrial develop-
ment projects or facilities are proposed to be located and with such 
other persons, including but not limited to private real estate devel-
opers, which in the opinion of the port authority is either necessary or 
desirable. The master plan shall include the port authority's estimate 
of the revenues to be derived by municipalities from each such 
industrial development project or facility and also a description of the 
proposed additional arrangements with muncipalities necessary or 
desirable for each such project or facility. The port authority may 
modify or change any part of such plan in the same form and manner 
as provided for the adoption of such original plan. At the time the 
port authority authorizes any industrial development project or 
facility, the port authority shall include with such authorization a 
statement as to the status of each project included in such master 
plan and any amendment thereof. 
"(c) No industrial development project proposed to be located 
within the city of New York may be included in such master plan 
unless and until the mayor of the city of New York requests the port 
authority to conduct a comprehensive study of the feasibility of the 
effectuation of one or more industrial development projects or any 
parts thereof (including resource recovery or industrial pollution 
control facilities) in such city, which request shall specify the borough 
in which such comprehensive study is to take place; provided, 
however, that the president of any borough in which an industrial 
development project or facility is proposed to be located may within 
sixty days of receipt of notice of such request, and after consulting 
with and considering any recommendation made by the local borough 
improvement board, notify the port authority not to include any 
proposed industrial development project or facility within that 
county in such feasibility study. Any such request by the mayor of the 
city of New York may specify the facilities to be included in such 
industrial park project. 
"§4. The moneys in the general reserve fund may be pledged in Financing, 
whole or in part by the port authority as security for or applied by it 
to the repayment with interest of any moneys which it may raise 
upon bonds issued or incurred by it from time to time for any of the 
purposes of this act or upon bonds secured in whole or in part by the 
pledge of the revenues from any industrial development project or 
New York City, 
inclusion in 
plan. 
93 STAT. 1248 
PUBLIC LAW 96-163—DEC. 28, 1979 
General reserve 
fund. 
Port authority's 
power, 
restriction on 
States. 
facility or any portion thereof or upon bonds both so issued or 
incurred and so secured; and the moneys in said general reserve fund 
may be applied by the port authority to the fulfillment of any other 
undertakings which it may assume to or for the benefit of the holders 
of any such bonds. 
"Subject to prior liens and pledges (and to the obligation of the port 
authority to apply revenues to the maintenance of its general reserve 
fund in the amount prescribed by the general reserve fund statutes), 
the revenues from facilities established, constructed, acquired or 
otherwise effectuated through the issuance or sale of bonds of the 
port authority secured in whole or in part by a pledge of its general 
reserve fund or any portion thereof may be pledged in whole or in 
part as security for or applied by it to any of the purposes of this act, 
including the repayment with interest of any moneys which it may 
raise upon bonds issued or incurred from time to time for any of the 
purposes of this act or upon bonds secured in whole or in part by the 
pledge of the revenues of the port authority from any industrial 
development project or facility or any portion thereof or upon bonds 
both so issued or incurred and so secured; and said revenues may be 
applied by the port authority to the fulfillment of any other under-
takings which it may assume to or for the benefit of the holders of 
such bonds. 
"§5. In all cases where the port authority has raised or shall 
hereafter raise moneys for any of the purposes of this act by the issue 
and sale of bonds which are secured in whole or in part by a pledge of 
the general reserve fund or any portion thereof, the surplus revenues 
from industrial development projects or facilities financed in whole 
or in part out of the proceeds of such bonds and the surplus revenues 
from any other port authority facility the surplus revenues of which 
at such time may be payable into the general reserve fund shall be 
pooled and applied by the port authority to the establishment and 
maintenance of the general reserve fund in an amount equal to one-
tenth of the par value of all bonds legal for investment, as defined in 
the general reserve fund statutes, issued by the port authority and 
currently outstanding, including such bonds issued for any of the 
purposes of this act; and all such moneys in said general reserve fund 
may be pledged and applied in the manner provided in the general 
reserve fund statutes. 
"In the event that any time the balance of moneys theretofore paid 
into the general reserve fund and not applied therefrom shall exceed 
an amount equal to one-tenth of the par value of all bonds upon the 
principal amount of which the amount of the general reserve fund is 
calculated, by reason of the retirement of bonds issued or incurred 
from time to time for any of the purposes of this act the par value of 
which had theretofore been included in the computation of said 
amount of the general reserve fund, then the port authority may 
pledge or apply such excess for and only for the purposes for which it 
is authorized by the general reserve fund statutes to pledge the 
moneys in the general reserve fund and such pledge may be made in 
advance of the time when such excess may occur. 
"§ 6. The two states covenant and agree with each other and with 
the holders of any bonds issued by the port authority for the purposes 
of this act, that so long as any of such bonds remain outstanding and 
unpaid and the holders thereof shall not have given their consent as 
provided in their contract with the port authority, the two states will 
not diminish or impair the power of the port authority to establish, 
levy and collect rentals, fares, fees or other charges in connection 
with industrial development projects or facilities or any other facility 
PUBLIC LAW 96-163—DEC. 28, 1979 
93 STAT. 1249 
owned or operated by the port authority the revenues of which have 
been or shall be pledged in whole or in part as security for such bonds 
(directly or indirectly, or through the medium of the general reserve 
fund or otherwise), or to determine the quantity, quality, frequency 
or nature of any services provided by the port authority in connection 
with the operation of each project or facility. This section shall not 
affect or diminish the provisions of section twelve of this act. 
"§ 7. The port authority is authorized and empowered to co-operate 
with the states of New York and New Jersey, with any municipality 
thereof, with any person, with the federal government and with any 
agency, public authority or commission of any one or more of the 
foregoing, or with any one or more of them, for and in connection 
with the acquisition, clearance, replanning, rehabilitation, recon-
struction or redevelopment of any industrial development project or 
facility or of any other area forming part of any industrial develop-
ment project or facility for the purpose of renewal and improvement 
of said area and for any of the purposes of this act, and to enter into 
an agreement or agreements (and from time to time to enter into 
agreements amending or supplementing the same) with any such 
person, municipality, commission, public authority or agency and 
with the states of New York and New Jersey and with the federal 
government, or with any one or more of them, for or relating to such 
purposes, including but not limited to agreements with respect to the 
dedication by the municipalities of the port district of refuse, solid 
waste or waste resulting from other treatment processes to resource 
recovery to permit the generation of lower priced energy and the 
recovery of useful materials; with respect to a commitment by such 
municipalities to pay fees to permit the delivery and removal after 
processing of such refuse or solid waste at rates and for periods of 
time at least sufficient to assure the continued availability of such 
energy and recovered materials; with respect to financial assistance, 
loans and grants pursuant to any federal law now in effect or 
hereinafter enacted which would provide such financial assistance, 
loans and grants in connection with any of the purposes of this act, 
provided, that if either state shall have or adopt general legislation 
governing applications for such federal aid by municipalities, public 
authorities, agencies or commissions of such state or the receipt or 
disbursement of such federal aid by or on behalf of such municipal-
ities, public authorities, agencies or commissions, then such legisla-
tion shall at the option of such state apply to applications by the port 
authority for such federal aid in connection with an industrial 
development project or facility located in such state and to the receipt 
and disbursement of such federal aid by or on behalf of the port 
authority, in the same manner and to the same extent as other 
municipalities, public authorities, agencies or commissions of such 
state; and, with respect to occupancy of space in any industrial 
development project or facility. The port authority is hereby author-
ized and empowered to apply for and accept financial assistance, 
loans and grants for such purposes under federal, state or local laws, 
and to make application directly to the proper officials or agencies for 
and receive federal, state or local loans or grants in aid of any of the 
purposes of this act. Nothing contained in this act shall be construed 
to limit or impair the power of the governor of the state of New York 
and the governor of the state of New Jersey to review the actions of 
the commissioners of the port authority as provided for in chapter 
seven hundred of the laws of New York of nineteen hundred twenty-
seven, as amended, and in chapter three hundred thirty-three of the 
laws of New Jersey of nineteen hundred twenty-seven, as amended, 
Cooperative 
agreements. 
Financial 
assistance from 
Federal, State, 
and local 
governments. 
59-194 O — 81 
81 : QL3 
93 STAT. 1250 
PUBLIC LAW 96-163—DEC. 28, 1979 
Subsidiary 
corporation. 
Cooperative 
agreements. 
or to authorize the port authority to commence the effectuation of 
any industrial development project or facility unless and until the 
municipality in which such project or facility is to be located has 
consented to the commencement of such effectuation, with such 
consent to be provided for in the agreement authorized by section 11 
or section 12 hereof. The port authority is authorized and empowered 
to enter into an agreement or agreements (and from time to time to 
enter into agreements amending or supplementing the same) with 
any public authority, agency or commission of either or both states to 
provide for the effectuation of any of the purposes of this act through 
a subsidiary corporation owned jointly by the port authority and any 
such public authority, agency or commission, and any such public 
authority, agency or commission is authorized and empowered to 
enter into such agreement or agreements with the port authority. 
"§8. Notwithstanding any contrary provision of law, general, 
special or local, either state and any municipality thereof and any 
commission, public authority or agency of either or both of said two 
states is authorized and empowered to cooperate with the port 
authority and to enter into an agreement or agreements (and from 
time to time to enter into agreements amending or supplementing 
the same) with the port authority or with any other person for and in 
connection with or relating to the acquisition, clearance, replanning, 
rehabilitation, reconstruction, redevelopment, sale, transfer or mort-
gage of any industrial development project or facility or of any other 
area forming part of any industrial development project or facility for 
the purpose of renewal and improvement of said area as aforesaid or 
for any of the other purposes of this act, including but not limited to 
the dedication by the municipalities of the port district of refuse, solid 
waste or waste resulting from other treatment processes to resource 
recovery to permit the generation of lower priced energy and the 
recovery of useful materials and a commitment by such municipal-
ities to pay fees to permit the delivery and removal after processing of 
such refuse or solid waste at rates and for periods of time at least 
sufficient to assure the continued availability of such energy and 
recovered materials, upon such reasonable terms and conditions as 
may be determined by such state, municipality, public authority, 
agency or commission and the port authority. Such agreement may, 
without limiting the generality of the foregoing, further include 
consent to the use by the port authority or any other person of any 
real property owned or to be acquired by said state, municipality, 
public authority, agency or commission and consent to the use by 
such state, municipality, public authority, agency or commission of 
any real property owned or to be acquired by the port authority or by 
any other person which in either case is necessary, convenient or 
desirable in the opinion of the port authority for any of the purposes 
of this act, including such real property, improved or unimproved, as 
has already been devoted to or has been or is to be acquired for urban 
renewal or other public use, and as an incident to such consent such 
state, municipality, public authority, agency or commission may 
grant, convey, lease or otherwise transfer any such real property to 
the port authority or to any other person and the port authority may 
grant, convey, lease or otherwise transfer any such real property to 
such state, municipality, public authority, agency, commission or any 
other person for such term and upon such conditions as may be 
agreed upon. If real property of such state, municipality, public 
authority, agency or commission be leased to the port authority or to 
any other person for any of the purposes of this act, such state, 
municipality, public authority, agency or commission may consent to 
PUBLIC LAW 96-163-DEC. 28,1979 
93 STAT. 1251 
the port authority or any other person having the right to mortgage 
the fee of such property and thus enable the port authority or such 
other person to give as security for its bond or bonds a lien upon the 
land and improvements, but such state, municipality, public 
authority, agency or commission by consenting to the execution by 
the port authority or such other person of a mortgage upon the leased 
property shall not thereby assume and such consent shall not be 
construed as imposing upon such state, municipality, public 
authority, agency or commission any liability upon the bond or bonds 
secured by the mortgage. In connection with any of the purposes of 
this act, either state and any municipality thereof, any commission, 
public authority or agency of either or both of said two states, the port 
authority and any other person are empowered to enter into any 
other agreement or agreements (and from time to time to enter into 
agreements amending or supplementing same) which may provide 
inter alia for the establishment of prices or rates, a requirement that 
any person sell, lease or purchase any commodity or service from any 
other person, or any other similar arrangement. 
"Nothing contained in this section shall impair or diminish the 
powers vested in either state or in any municipality, public authority, 
agency or commission to acquire, clear, replan, reconstruct, rehabili-
tate or redevelop abandoned, undeveloped or underutilized land and 
the powers herein granted to either state or any municipality, public 
authority, agency or commission shall be construed to be in aid of and 
not in limitation or in derogation of any such powers heretofore or 
hereafter conferred upon or granted to such state, municipality, 
public authority, agency or commission. 
"Nothing contained in this act shall be construed to authorize the 
port authority to acquire, by condemnation or the exercise of the 
right of eminent domain, property now or hereafter vested in or held 
by either state or by any municipality, public authority, agency or 
commission without the authority or consent by such state, munici-
pality, public authority, agency or commission, provided that the 
state under whose laws such public authority, agency or commission 
has been created may authorize by appropriate legislation the port 
authority to acquire any such property vested in or held by any such 
public authority, agency or commission by condemnation or the 
exercise of the right of eminent domain without such authority or 
consent; nor shall anything herein impair or invalidate in any way 
any bonded indebtedness of either state or any such municipality, 
public authority, agency or commission, nor impair the provisions of 
law regulating the payment into sinking funds of revenues derived 
from such property, or dedicating the revenues derived from such 
property to a specific purpose. 
"The port authority, subject to the express authority or consent of 
any such state, municipality, public authority, agency or commission, 
is hereby authorized and empowered to acquire from any such state 
or municipality, or from any other public authority, agency or 
commission having jurisdiction in the premises, by agreement there-
with, and such state or municipality, public authority, agency or 
commission, notwithstanding any contrary provision of law, is hereby 
authorized and empowered to grant and convey, upon reasonable 
terms and conditions, any real property which may be necessary, 
convenient or desirable for any of the purposes of this aot, including 
such real property as has already been devoted to a public use. 
"Notwithstanding any inconsistent provision of this section or act Park lands, 
or any compact or general or special law, the port authority may not restriction on 
acquire any park lands for industrial development projects or facili- acquisition. 
93 STAT. 1252 
PUBLIC LAW 96-163—DEC. 28, 1979 
Suits, actions, or 
proceedings. 
Taxation. 
ties unless each such conveyance of such land is specifically author-
ized by the legislature of the state wherein the land is located. 
"Any consent by a municipality shall be given and the terms, 
conditions and execution by a municipality of any agreement, deed, 
lease, conveyance or other instrument pursuant to this section or any 
other section of this act shall be authorized in the manner provided in 
article twenty-two of the compact of April thirty, nineteen hundred 
twenty-one between the two states creating the port authority, except 
that as to towns in the state of New York, such consent shall be 
authorized in the manner provided in the town law and as to counties 
in the state of New Jersey, such consent shall be authorized in the 
manner provided in New Jersey statutes annotated, forty: one-one, et 
seq. Any consent by either state shall be effective if given, and the 
terms and conditions and execution of any agreement, deed, lease, 
conveyance or other instrument pursuant to this section or any other 
section of this act shall be effective if authorized by the governor of 
such state. Any consent by a public authority, agency or commission 
shall be effective if given by such public authority, agency or 
commission. 
"§ 9. The states of New York and New Jersey hereby consent to 
suits, actions or proceedings by any municipality, public authority, 
agency or commission against the port authority upon, in connection 
with or arising out of any agreement, or any amendment thereof, 
entered into for any of the purposes of this act, as follows: 
"a. for judgments, orders or decrees restraining or enjoining the 
port authority from transferring title to real property to other 
persons in cases where it has agreed with said municipality, public 
authority, agency, or commission for transfer of such title to the 
municipality, public authority, agency or commission; and 
"b. for judgments, orders or decrees restraining or enjoining the 
port authority from committing or continuing to commit other 
breaches of such agreement or any amendment thereof; provided, 
that such judgment, order or decree shall not be entered except upon 
two days' prior written notice to the port authority of the proposed 
entry thereof; and provided further that upon appeal taken by the 
port authority from such judgment, order or decree the service of the 
notice of appeal shall perfect the appeal and stay the execution of 
such judgment, order or decree appealed from without an undertak-
ing or other security. 
"Nothing herein contained shall be deemed to revoke, rescind or 
affect any consent to suits, actions, or proceedings against the port 
authority heretofore given by the two said states in chapter three 
hundred one of the laws of New York of nineteen hundred fifty and 
chapter two hundred four of the laws of New Jersey of nineteen 
hundred fifty-one. 
"§ 10. The effectuation of industrial development projects or facili-
ties or any such projects or facilities constituting a portion of any 
industrial development project or facility, are and will be in all 
respects for the benefit of the people of the states of New York and 
New Jersey, for the increase of their commerce and prosperity and 
for the improvement of their health and living conditions; and the 
port authority and any subsidiary corporation incorporated for any of 
the purposes of this act shall be regarded as performing an essential 
governmental function in undertaking the effectuation thereof, and 
in carrying out the provisions of law relating thereto. 
"§11. The port authority shall be required to pay no taxes or 
assessments upon any of the property acquired and used by it for any 
of the purposes of this act or upon any deed, mortgage or other 
PUBLIC LAW 96-163—DEC. 28, 1979 
93 STAT. 1253 
instrument affecting such property or upon the recording of any such 
instrument. However, to the end that no taxing jurisdiction shall 
suffer undue loss of taxes and assessments by reason of the acquisi-
tion and ownership of property by the port authority for any of the 
purposes of this act, the port authority is hereby authorized and 
empowered, in its discretion, to enter into a voluntary agreement or 
agreements with any city, town, township or village whereby the port 
authority will undertake to pay in lieu of taxes a fair and reasonable 
sum, if any, or sums annually in connection with any real property 
acquired and owned by the port authority for any of the purposes of 
this act and to provide for the payment as a rental or additional 
rental charge by any person occupying any portion of any industrial 
development project or facility either as lessee, vendee or otherwise 
of such reasonable sum, if any, or sums as hereinafter provided. Such 
sums in connection with any real property acquired and owned by the 
port authority for any of the purposes of this act shall not be more 
than the sum last paid as taxes upon such real property prior to the 
time of its acquisition by the port authority; provided, however, that 
in connection with any portion of any industrial development project 
or facility, which is owned by the port authority or another govern-
mental entity and improved pursuant to this act with buildings, 
structures or improvements greater in value than the buildings, 
structures or improvements in existence at the time of its acquisition, 
development or improvement by the port authority, any person 
occupying such portion of such industrial development project or 
facility either as lessee, vendee or otherwise shall, as long as title 
thereto shall remain in the port authority or in another governmen-
tal entity, pay as a rental or additional rental charge an amount in 
lieu of taxes, if any, not in excess of the taxes on such improvements 
and on personal property, including water and sewer service charges 
or assessments, which such person would have been required to pay 
had it been the owner of such property during the period for which 
such payment is made; provided further, however, that neither the 
port authority nor any of its projects, facilities, properties, monies or 
bonds and notes shall be obligated, liable or subject to lien of any kind 
whatsoever for the enforcement, collection or payment thereof. Each 
such city, town, township or village is hereby authorized and empow-
ered to enter into such agreement or agreements with the port 
authority which agreement or agreements may also include provi-
sions with respect to the joint review of categories of tenants proposed 
as occupants for industrial development projects or facilities with the 
cities, towns, townships or villages in which they are proposed to be 
located, and to accept the payment or payments which the port 
authority is hereby authorized and empowered to make or which are 
paid by a person occupying any such portion of such industrial 
development project or facility as rental or as additional rental in 
lieu of taxes, and the sums so received by such city, town, township or 
village shall be devoted to purposes to which taxes may he applied in 
all affected taxing jurisdictions unless and until otherwise directed 
by law of the state in which such city, town, township or village is 
located. At least ten days prior to the authorization by the port Notification to 
authority of any agreement provided for in this section eleven, the ^
^
*
^
®
^
-
port authority shall notify the chief executive officer of each city in 
the port district within which an industrial development project or 
facility has been included in the master plan provided for in para-
graph (b) of section three hereof of the proposed authorization of such 
agreement, shall seek their comments and shall include with such 
authorization any comments received from such city. The port 
93 STAT. 1254 
PUBLIC LAW 96-163—DEC. 28, 1979 
Environmental 
statement, 
transmittal to 
state governor. 
Subsidiary 
corporations. 
authority shall not sell or lease substantially all of an industrial 
development project or facility to a proposed purchaser or lessee 
without the prior approval by the municipality wherein the project or 
facility is located of such purchaser or lessee. 
"§ 12. Except as otherwise specifically provided, all details of the 
effectuation, including but not limited to details of financing, leasing, 
rentals, fees and other charges, rates, contracts and service, of 
industrial development projects or facilities by the port authority 
shall be within its sole discretion and its decision in connection with 
any and all matters concerning industrial development projects or 
facilities shall be controlling and conclusive; provided that the 
construction and operation of any such project or facility shall 
conform to the environmental and solid waste disposal standards and 
any state and county plans therefor in the state in which such project 
or facility is located. At least ninety days prior to the authorization by 
the port authority of the first contract for the construction of any 
industrial development project or facility, the port authority shall 
transmit to the governor of the state in which such project or facility 
is to be located a statement as to the conformance of such industrial 
development project or facility with such environmental and solid 
waste disposal standards and any state and county plans therefor, 
and shall consult with such governor or his designee with respect 
thereto. The port authority and the city, town, township or village in 
which any industrial development project or facility is to be located 
and for whose benefit such project or facility is undertaken are 
hereby authorized and empowered to enter into an agreement or 
agreements to provide which local laws, resolutions, ordinances, rules 
and regulations, if any, of such city, town, township or village 
affecting any industrial development project or facility shall apply to 
such project or facility. All other existing local laws, resolutions, 
ordinances or rules and regulations not provided for in such agree-
ment shall be applicable to such industrial development projects or 
facilities. All such local laws, resolutions, ordinances or rules and 
regulations enacted after the date of such agreement or agreements 
shall not be applicable to such projects or facilities unless made 
applicable by such agreement or agreements or any modification or 
modifications thereto. 
"So long as any facility constituting a portion of any industrial 
development project or facility shall be owned, controlled or operated 
by the port authority, no public authority, agency, commission or 
municipality of either or both of the two states shall have jurisdiction 
over such project or facility nor shall any such public authority, 
agency, commission or municipality have any jurisdiction over the 
terms or method of effectuation of all or any portion thereof by the 
port authority including but not limited to the transfer of all or any 
portion thereof to or by the port authority; provided, however, the 
port authority is authorized and empowered to submit to the jurisdic-
tion over such project or facility of either state or any department 
thereof or any such public authority, agency, commission or munici-
pality when the exercise of such jurisdiction is necessary for the 
administration or implementation of federal environmental or solid 
waste disposal legislation by either state. 
"Nothing in this act shall be deemed to prevent the port authority 
from establishing, acquiring, owning, leasing, constructing, effectuat-
ing, developing, maintaining, operating, rehabilitating, improving, 
selling, transferring or mortgaging all or any portion of any indus-
trial development project or facility through wholly owned subsidiary 
corporations of the port authority or subsidiary corporations owned 
PUBLIC LAW 96-163-DEC. 28, 1979 
93 STAT. 1255 
Certificate of 
incorporation. 
by the port authority jointly with any public authority, agency or 
commission of either or both of the two states or from transferring to 
or from any such corporations any moneys, real property or other 
property for any of the purposes of this act. If the port authority shall 
determine from time to time to form such a subsidiary corporation it 
shall do so by executing and filing with the secretary of state of the 
State of New York and the secretary of state of the State of New 
Jersey a certificate of incorporation, which may be amended from 
time to time by similar filing, which shall set forth the name of such 
subsidiary corporation, its duration, the location of its principal 
office, any joint owners thereof, and the purposes of the incorporation 
which shall be one or more of the purposes of establishing, acquiring, 
owning, leasing, constructing, effectuating, developing, maintaining, 
operating, rehabilitating, improving, selling, transferring or mort-
gaging all or any portion of any industrial development project or 
facility. The directors of such subsidiary corporation shall be the Directors 
same persons holding the offices of commissioners of the port author-
ity together with persons representing any joint owner thereof as 
provided for in the agreement in connection with the incorporation 
thereof. Such subsidiary corporation shall have all the powers vested 
in the port authority itself for the purposes of this act except that it 
shall not have the power to contract indebtedness. Such subsidiary Powers, 
corporation and any of its property, functions and activities shall 
have all of the privileges, immunities, tax exemptions and other 
exemptions of the port authority and of the port authority's property, 
functions and activities. Such subsidiary corporation shall be subject 
to the restrictions and limitations to which the port authority may be 
subject, including, but not limited to the requirement that no action 
taken at any meeting of the board of directors of such subsidiary 
corporation shall have force or effect until the governors of the two 
states shall have an opportunity, in the same manner and within the 
same time as now or hereafter provided by law for approval or veto of 
actions taken at any meeting of the port authority itself, to approve 
or veto such action. Such subsidiary corporation shall be subject to 
suit in accordance with section nine of this act and chapter three 
hundred one of the laws of New York of nineteen hundred fifty and 
chapter two hundred four of the laws of New Jersey of nineteen 
hundred fifty-one as if such subsidiary corporation were the port 
authority itself. Such subsidiary corporation may be a participating 
employer under the New York retirement and social security law or 
any similar law of either state and the employees of any such 
subsidiary corporation, except those who are also employees of the 
port authority, shall not be deemed employees of the port authority. 
"Whenever any state, municipality, commission, public authority, 
agency, officer, department, board or division is authorized and 
empowered for any of the purposes of this act to co-operate and enter 
into agreements with the port authority or to grant any consent to 
the port authority or to grant, convey, lease or otherwise transfer any 
property to the port authority or to execute any document, such state, 
municipality, commission, public authority, agency, officer, depart-
ment, board or division shall have the same authorization and power 
for any of such purposes to co-operate and enter into agreements with 
such subsidiary corporation and to grant consents to such subsidiary 
corporation and to grant, convey, lease or otherwise transfer property 
to such subsidiary corporation and to execute documents for such 
subsidiary corporation. 
"§ 13. The bonds issued by the port authority to provide funds for Bonds 
any of the purposes of this act are hereby made securities in which all 
Suit. 
Cooperative 
agreements. 
93 STAT. 1256 
PUBLIC LAW 96-163—DEC. 28, 1979 
state and municipal officers and bodies of both states, all trust 
companies and banks other than savings banks, all building and loan 
associations, savings and loan associations, investment companies 
and other persons carrying on a commercial banking business, all 
insurance companies, insurance associations and other persons car-
rying on an insurance business, and all administrators, executors, 
guardians, trustees and other fiduciaries, and all other persons 
whatsoever (other than savings banks), who are now or may hereafter 
be authorized by either state to invest in bonds of such state, may 
properly and legally invest any funds, including capital, belonging to 
them or within their control, and said bonds are hereby made 
securities which may properly and legally be deposited with and shall 
be received by any state or municipal officer or agency of either state 
for any purpose for which the deposit of bonds of such state is now or 
may hereafter be authorized. The bonds issued by the port authority 
to provide funds for any of the purposes of this act as security for 
which the general reserve fund shall have been pledged in whole or in 
part are hereby made securities in which all savings banks also may 
properly and legally invest any funds including capital, belonging to 
them or within their control. 
Acquisition of 
"§ 14. Subsequent to and subject to the execution of the agreement 
property. 
or agreements authorized by sections eleven and twelve hereof for the 
projects and facilities and at the locations specified therein, if the 
port authority shall find it necessary, convenient or desirable to 
acquire from time to time any real property or any property other 
than real property (including but not limited to contract rights and 
other tangible or intangible personal property), for any of the 
purposes of this act whether for immediate or future use (including 
temporary construction, rehabilitation or improvement), the port 
authority may find and determine that such property, whether a fee 
simple absolute or a lesser interest, is required for a public use, and 
upon such determination the said property shall be and shall be 
deemed to be required for such public use until otherwise determined 
by the port authority, and such determination shall not be affected by 
the fact that such property has theretofore been taken for and is then 
devoted to a public use; but the public use in the hands of or under the 
control of the port authority shall be deemed superior to the public 
use in the hands of any other person, association or corporation. 
"The port authority may acquire and is hereby authorized so to 
acquire from time to time, for any of the purposes of this act, such 
property, whether a fee simple absolute or a lesser estate, by 
condemnation (including the exercise of the right of eminent domain) 
under and pursuant to the provisions of the eminent domain proce-
dure law of the state of New York in the case of property located in or 
having its situs in such state, and chapter three hundred sixty-one of 
the laws of New Jersey of nineteen hundred seventy-one, in the case 
of property located in or having its situs in such state, or, at the 
. 
option of the port authority, as provided in section fifteen of chapter 
forty-three of the laws of New Jersey of nineteen hundred forty-
seven, as amended, in the case of property located in or having its 
situs in such state, or pursuant to such other and alternate procedure 
as may be provided by law of the state in which such property is 
located or has its situs; and all of said statutes for the acquisition of 
, 
real property shall, for any of the purposes of this act, be applied also 
\ 
to the acquisition of other property authorized by this section, except 
that such provisions as pertain to surveys, diagrams, maps, plans or 
profiles, assessed valuation, lis pendens, service of notice and papers, 
filing in the office of the clerk in which the real property affected is 
PUBLIC LAW 96-163—DEC. 28, 1979 
93 STAT. 1257 
situated and such other provisions as by their nature cannot be 
applicable to property other than real property, shall not be applica-
ble to the acquisition of such other property. In the event that any 
property other than real property is acquired for any of the purposes 
of this act under this section then, with respect to such other 
property, notice of such proceeding and all subsequent notices or 
court processes shall be served upon the owners of such other 
property and upon the port authority by personal service or by 
registered or certified mail, except as may be otherwise directed by 
the court. 
"The port authority is hereby authorized and empowered, in its 
discretion, from time to time to combine any property which is to be 
acquired as aforesaid by condemnation for any of the purposes of this 
act for acquisition in a single action or proceeding notwithstanding 
that part of the property so to be acquired is personal property or 
mixed real and personal property or may be owned by more than one 
owner. 
"The owner of any property acquired by condemnation or the 
exercise of the right of eminent domain for any of the purposes of this 
act shall not be awarded for such property any increment above the 
just compensation required by the constitutions of the United States 
and of the state or states in which the property is located or has its 
situs by reason of any circumstances whatsoever. 
"Nothing herein contained shall be construed to prevent the port 
authority from bringing any proceedings to remove a cloud on title or 
such other proceedings as it may, in its discretion, deem proper and 
necessary, or from acquiring any such property by negotiation or 
purchase. 
"Where a person entitled to an award in the proceedings for the 
acquisition of property by condemnation or the right of eminent 
domain for any of the purposes of this act remains in possession of 
such property after the time of the vesting of title in the port 
authority, the reasonable value of this use and occupancy of such 
property subsequent to such time, as fixed by agreement or by the 
court in such proceedings or by any court of competent jurisdiction, 
shall be a lien against such award, subject only to liens of record at 
the time of the vesting of title in the port authority. 
"§ 15. The port authority and its duly authorized agents, and all Surveys 
persons acting under its authority and by its direction, may enter in 
the daytime into and upon any real property for the purpose of 
making such surveys, diagrams, maps, plans, soundings or borings as 
the port authority may deem necessary, convenient or desirable for 
any of the purposes of this act. 
"§ 16. Any declarations contained herein with respect to the gov-
ernmental nature and public purpose of any industrial development 
project or facility and to the exemption of any industrial development 
project or facility property and instruments relating thereto from 
taxation and to the discretion of the port authority with respect to 
said projects or facilities shall not be construed to imply that other 
port authority facilities, property and operations are not of a govern-
mental nature or do not serve public purposes, or that they are 
subject to taxation, or that the determinations of the port authority 
with respect thereto are not conclusive. The powers hereby vested in 
the port authority and in any subsidiary corporation incorporated for 
any of the purposes of this act (including but not limited to the power 
to acquire real property by condemnation or the exercise of the right 
of eminent domain) shall be continuing powers and no exercise 
thereof by the port authority or a subsidiary corporation incorpo-
Compensation of 
owner. 
Other port 
authority 
facilities, 
property, and 
operations. 
93 STAT. 1258 
PUBLIC LAW 96-163—DEC. 28, 1979 
rated for any of the purposes of this act shall be deemed to exhaust 
them or any of 
them. 
"§ 17. Tms section and the preceding sections hereof constitute an 
agreement between the states of New York and New Jersey supple-
mentary to the compact between the two states dated April thirtieth, 
nineteen hundred twenihr-one and amendatory thereof, and shall be 
liberally construed to effectuate the purposes of said compact and of 
the comprehensive plan heretofore adopted by the two states, and the 
powers panted to tne port authority shall be construed to be in aid of 
and not in limitation or in derogation of any other powers, heretofore 
conferred upon or granted to the port authority.". 
SEC. 2. Nothing contained in said agreement or compact shall be 
construed as impairing or in any manner affecting any right or 
jurisdiction of the United States in and over the region which forms 
the subject of 
said agreement. 
SEC. 3. The right to alter, amend, or repeal this Act is expressly 
reserved. 
Approved December 28, 1979. 
LEGISLATIVE HISTORY: 
HOUSE REPORT No. 96-507 (Comm. on the Judiciary). 
SENATE REPORT No. 96-427 (Comm. on the Judiciary). 
CONGRESSIONAL RECORD, Vol. 125 (1979): 
Oct. 23, considered and passed House. 
Dec. 6, considered and passed Senate, amended. 
Dec. 10, House disagreed to Senate amendment. 
Dec. 14, Senate receded from its amendment. 
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 15, No. 52: 
Dec. 31, Presidential statement.