DEMONSTRATION PROJECT TO PROMOTE SHIP RECYCLING AS A METHOD TO ASSIST SEPARATED MEMBERS AND TERMINATED DEFENSE WORKERS.

SEC. 1136. DEMONSTRATION PROJECT TO PROMOTE SHIP RECYCLING AS A METHOD TO ASSIST SEPARATED MEMBERS AND TERMINATED DEFENSE WORKERS. (a) Ship Recycling Demonstration Project.— (1) Subject to paragraph (2), the Secretary of Defense may carry out a demonstration project in not more than three eligible locations to assist separated members of the Armed Forces and terminated defense workers described in subsection (c) to obtain employment by participating in the establishment and operation of ship recycling facilities. To carry out the demonstration project, the Secretary shall seek the participation of representatives of the ship recycling industry. (2) The Secretary of Defense may not implement or carry out the demonstration project unless the Secretary certifies to Congress not later than 180 days after the date of the enactment of this Act that— (A) the demonstration project will facilitate personnel transition programs of the Department of Defense; and (B) activities under the demonstration project will not disrupt the operations of United States companies that are engaged in ship recycling and scrapping as of the date of the enactment of this Act. (b) Eligible Locations.— A location shall be eligible for selection by the Secretary of Defense as a site for the demonstration project if the location contains one or more military installations that have been selected for closure or realignment pursuant to a base closure law and such installations include naval and port facilities. Competitive procedures shall be used in the selection of locations in which to conduct the demonstration project. (c) Persons Assisted Under Demonstration Project.— The demonstration project is intended to promote the establishment and operation of ship recycling facilities that will provide employment for the following persons: (1) Members of the Armed Forces who are discharged or released from active duty. 108 STAT. 2877 (2) Civilian employees of the Department of Defense who are terminated from such employment as a result of reductions in defense spending or the closure or realignment of a military installation, as determined by the Secretary of Defense. (3) Employees of defense contractors who are terminated or laid off (or receive a notice of termination or layoff) as a result of the completion or termination of a defense contract or program or reductions in defense spending, as determined by the Secretary of Defense. (d) Assistance Authorized.— To carry out the demonstration project in an eligible location selected by the Secretary, the Secretary may make grants to, and enter into contracts and cooperative agreements with, State governments, local governments, private entities, nonprofit organizations, and institutions of higher education operating in that location. (e) Activities Supported.— A government or entity (or group of entities) receiving assistance under the demonstration project shall use the assistance to perform, or support the performance of, any of the following: (1) Developing a business plan to establish a ship recycling facility for military and commercial ships currently in service and projected for future scrapping. (2) In consultation with the private sector, conducting a market study of— (A) the existing private sector capacity to perform ship recycling; (B) the utilization of existing ship recycling capacity; (C) the regional impact on markets for scrap generated from ship recycling; (D) the environmental remediation requirements associated with ship recycling; (E) the ability to incorporate the private sector into the ship recycling facilities established pursuant to the demonstration project; and (F) such other issues related to ship recycling as the Secretary considers appropriate. (3) Conducting a skills assessment study to determine the number and type of employees needed to operate a ship recycling facility. (4) Developing plans for the cost-effective environmental remediation of ships to be recycled at the facility. (5) Demonstrating the feasibility of a ship recycling facility to become financially self-sustaining or projecting a reasonable timetable for the completion of the demonstration project, in which case the entity shall develop training, skills enhancement, and career placement programs to assist employees involved in ship recycling to secure new occupations and careers. (6) Supporting regional ship recycling start-up activities. (7) Analyzing the potential to use persons described in subsection (c) as employees at a ship recycling facility. (f) Transfer of Excess Naval Vessels.— The Secretary of Defense may allocate among the ship recycling facilities established under the demonstration project excess naval vessels of the United States for recycling. (g) Funding for Fiscal Year 1995.— Of the amount made available pursuant to section 1102(a), $7,500,000 shall be available 108 STAT. 2878to the Secretary of Defense to carry out the demonstration project if the Secretary of Defense makes the certification under subsection (a)(2) within the time period specified in such subsection.