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.

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

Directs the Secretary of the Navy, after assessing the feasibility and advisability of breaking up naval vessels and Maritime Administration vessels in U.S. shipyards, to carry out a demonstration program by competitively awarding a cost contract to each of two qualified U.S. shipyards to break up a group of vessels consisting of any stricken from the Naval Vessel Register and any under the jurisdiction of the Maritime Administration.