To limit the disposal of former naval vessels and Maritime Administration vessels for purpose of scrapping abroad and to require the Secretary of the Navy to carry out a ship scrapping pilot program.

Prohibits the Secretaries of the Navy and of Transportation from disposing of any naval vessel or Maritime Administration vessel, respectively, for purposes of scrapping, dismantling, or breaking up such vessels outside the United States, unless: (1) the Administrator of the Environmental Protection Agency certifies to the Congress and the Secretary concerned that environmental standards imposed by law and enforced in the country in which the vessel is to be scrapped, dismantled, or broken up are similar to the environmental standards imposed under U.S. law; and (2) the Secretary of Labor certifies to the Congress and the Secretary concerned that such country recognizes internationally recognized worker rights.

Directs the Secretary of the Navy to carry out a pilot program to: (1) gather data on the cost of scrapping U.S. vessels at U.S. locations; and (2) demonstrate cost effective technologies and techniques to scrap such vessels in a manner that is protective of worker safety and health and the environment. Requires the Secretary of the Navy, in selecting a contractor for any contract under the pilot program for the scrapping of a vessel, to award the contract to an offeror that will provide the best value to the United States.