II

105TH CONGRESS

2D SESSION S. 2064

To prohibit the sale of naval vessels and Maritime Administration vessels

for purposes of scrapping abroad, to establish a demonstration program

relating to the breaking up of such vessels in United States shipyards,

and for other purposes.

IN THE SENATE OF THE UNITED STATES

MAY 12, 1998

Ms. MIKULSKI (for herself, Mr. GLENN, and Mr. SARBANES) introduced the

following bill; which was read twice and referred to the Committee on

Armed Services

A BILL

To prohibit the sale of naval vessels and Maritime Administration vessels for purposes of scrapping abroad, to establish a demonstration program relating to the breaking

up of such vessels in United States shipyards, and for

other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,
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1 SECTION 1. PROHIBITION ON SALE OF NAVAL VESSELS

2 AND MARITIME ADMINISTRATION VESSELS

3 FOR DISMANTLING, BREAKING UP, OR

4 SCRAPPING ABROAD.

5 (a) PROHIBITION.—Notwithstanding any other provi6 sion of law and except as provided in subsection (b), the

7 Secretary of the Navy, in the case of vessels under the

8 jurisdiction of such Secretary, and the Secretary of Trans9 portation, in the case of vessels under the jurisdiction of

10 the Maritime Administration, may not sell or otherwise

11 dispose of any such vessel otherwise available for sale or

12 disposal for purposes of dismantling, breaking up, or

13 scrapping the vessel outside the United States.

14 (b) EXCEPTION.—A vessel described in subsection (a)

15 may be sold or otherwise disposed of for purposes of dis16 mantling, breaking up, or scrapping abroad if—

17 (1) the Administrator of the Environmental

18 Protection Agency certifies to Congress and the Sec19 retaries referred to in subsection (a) that the envi20 ronmental standards imposed by law and enforced in

21 the country in which the vessel is to be dismantled,

22 broken up, or scrapped, as the case may be, are

23 similar to the environmental standards imposed

24 under United States law; and

25 (2) the Secretary of Labor certifies to Congress

26 and such Secretaries that such country recognizes
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1 internationally recognized worker rights (as that

2 term is defined in section 507(4) of the Trade Act

3 of 1974 (19 U.S.C. 2467(4)).

4 SEC. 2. DEMONSTRATION PROGRAM FOR BREAKING UP

5 NAVAL VESSELS AND MARITIME ADMINIS6 TRATION VESSELS IN UNITED STATES SHIP7 YARDS.

8 (a) IN GENERAL.—The Secretary of the Navy shall

9 carry out a demonstration program in order to assess the

10 feasibility and advisability of breaking up naval vessels

11 and Maritime Administration vessels in United States

12 shipyards. The Secretary shall carry out the demonstra13 tion program in accordance with this section.

14 (b) CONTRACT FOR BREAKING UP.—(1) The Sec15 retary shall carry out the demonstration program by com16 petitively awarding a cost contract to each of two qualified

17 United States shipyards to break up a group of vessels

18 consisting of vessels that have been stricken from the

19 Naval Vessel Register and vessels under the jurisdiction

20 of the Maritime Administration.

21 (2) Each contract under paragraph (1) shall be for

22 a term of three years.

23 (3) The aggregate tonnage of the vessels broken up

24 each year under each contract under paragraph (1) shall

25 exceed 80,000 tons. The Secretary shall identify the ves-
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1 sels to be covered by each contract before awarding the

2 contract.

3 (4) The Secretary shall award contracts under para4 graph (1) not later than 6 months after the date of enact5 ment of this Act.

6 (5) For purposes of this subsection, the term ‘‘quali7 fied United States shipyard’’ means a United States ship8 yard that—

9 (A) is qualified to construct or repair naval ves10 sels or vessels under the jurisdiction of the Maritime

11 Administration;

12 (B) is covered by a current Navy Master Ship

13 Repair Agreement;

14 (C) is in compliance with all applicable Federal,

15 State, and local license and other requirements relat16 ing to the construction or repair of vessels referred

17 to in subparagraph (A);

18 (D) has the capacity to provide the facilities

19 and manpower to perform all the activities required

20 of a shipyard under a contract under this section,

21 including the removal of hazardous and controlled

22 substances (including polychlorinated biphenyls, as23 bestos, and lead paint) in accordance with all appli24 cable Federal, State, and local laws; and
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1 (E) has the capacity to perform not less than

2 75 percent of the man-hours of labor required for

3 such activities within the shipyard using employees

4 of the shipyard.

5 (c) SHIPYARD ACTIVITIES.—Each shipyard awarded

6 a contract under subsection (b) shall—

7 (1) break up and domestically process all scrap

8 associated with each vessel covered by the contract

9 in accordance with the terms of the contract;

10 (2) sell or otherwise dispose of such vessel (and

11 its equipment or other contents) for scrap upon its

12 breaking up under paragraph (1); and

13 (3) pay to the United States an amount equal

14 to 50 percent of the amount, if any, by which the

15 proceeds received by the shipyard for the sale or dis16 posal of such vessel under paragraph (2) exceeds the

17 cost incurred by the shipyard in carrying out activi18 ties with respect to such vessel under paragraphs (1)

19 and (2).

20 (d) PERFORMANCE OF ACTIVITIES.—Each shipyard

21 awarded a contract under subsection (a) shall perform not

22 less than 75 percent of the man-hours of labor required

23 for the activities specified under subsection (c) within the

24 shipyard using employees of the shipyard.
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1 (e) REPORT.—Not later than ll after the date of

2 enactment of this Act, the Secretary shall submit to Con3 gress a report on the demonstration program. The report

4 shall—

5 (1) describe the activities under the demonstra6 tion program;

7 (2) assess the feasibility and advisability of

8 breaking up naval vessels and Maritime Administra9 tion vessels in United States shipyards in light of

10 such activities; and

11 (3) include such other findings and rec12 ommendations as the Secretary considers appro13 priate.

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