108 STAT. 2876 PUBLIC LAW 103-337—OCT. 5, 1994 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) ACTIVITIES UNDER DEMONSTRATION PROJECT.— Under the demonstration project, the Secretary of Defense shall— (1) develop a business plan to establish a facility in each community in which the demonstration project is conducted to assist persons described in subsection (c) to own their own businesses; (2) conduct a market study to identify markets for the facility; (3) develop innovative approaches to capital formation for the facility and persons described in subsection (c); (4) conduct a skills assessment study to determine the number and t5TDe of employees needed to operate the facility; and (5) analyze the potential to use persons described in subsection (c) as employees of the facility. SEC. 1135. 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 militsiry 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 employ- ment for the following persons: (1) Members of the Armed Forces who are discharged or released from active duty.