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DFSP San Pedro Commercial Outleases

Navy Releases Final Environmental Assessment and Finding of No Significant Impact for the Outlease of Defense Fuel Support Point (DFSP) San Pedro Marine Terminal

A finalized Environmental Assessment (EA) and Finding of No Significant Impact was released June 17, 2022 for the potential commercial outlease of the DFSP San Pedro Marine Terminal site on Terminal Island in Long Beach.  The final EA indicated that a commercial outlease of the Marine Terminal would not significantly impact the quality of the human or natural environment. 

The original requirement to fuel Navy ships has been removed from both the DFSP San Pedro Marine Terminal and Main Terminal potential leases. 

Please see the following documents for additional information:

DFSP San Pedro Marine Terminal Commercial Outlease Final EA Fact Sheet
DFSP San Pedro Environmental Assessment Clarification Sheet
DFSP San Pedro Commercial Outlease Final Environmental Assessment
DFSP San Pedro Commercial Outlease Finding of No Significant Impact (FONSI)

For the DFSP San Pedro Main Terminal outlease, the Navy is currently determining if a Supplemental Environmental Assessment is needed.  The signing of a Main Terminal outlease would not take place until all environmental documentation is complete. 

Background and Status

Defense Fuel Support Point (DFSP) San Pedro is comprised of two Special Areas: (1) the San Pedro Fuel Depot (the Main Terminal) and (2) the Long Beach Fuel Complex (the Marine Terminal including Pier 12, located at the old Naval Station Long Beach on Terminal Island).  Both locations are assigned to nearby Naval Weapons Station Seal Beach.  Since 1943 the facilities have been used to store and transport marine and aviation fuels to a wide range of Department of Defense users throughout the southwest United States.

Beginning in 1980 the operation of DFSP San Pedro was the responsibility of the Defense Logistics Agency (DLA).  Following a DLA review of infrastructure and fueling requirements, the decision was made to cease DLA operations at DFSP San Pedro.  By May 2014, the DLA had placed all fuel storage tanks at the facility in a non-active, temporary closure status.   By July 2017 all underground storage tanks had been permanently closed, cleaned and filled in.

In Fall 2018 the Navy proposed reactivating the Main and/or Marine Terminals.  In the proposal, the Navy would outlease the facilities and related pipelines to a commercial lessee.  The lessee would bring all required fueling equipment up to the most recent safety standards and maintain that equipment in a constant state of readiness at no cost to the government.  In addition to conducting commercial operations, the lessee would support Navy ship fueling operations when required.

An Environmental Assessment (EA) for this proposal was drafted from 2018-2019, but was not finalized, pending the outcome of the commercial outlease process.  In this way, specific outlease proposals could be taken into account and analyzed in more detail if needed to ensure that all potential environmental impacts had been addressed.

The Navy released a Request for Proposals (RFP) for commercial use of the Main and/or Marine Terminals from November 2019-February 2020.  This was followed by the issuance of a Request for Qualifications from April-July 2020, and a revised RFP from August-September 2020.  In January 2021 the Navy selected an offeror for commercial use of the Main Terminal for a period of exclusive negotiation on a leasing arrangement.
In February 2021 the Navy re-advertised the Marine Terminal and pipelines for a separate lease, without the requirement for Navy ships to receive fuel at Pier 12.  This new RFP closed in April 2021, and the Navy then selected an offeror for commercial use of the Marine Terminal for a period of exclusive negotiation on a leasing arrangement.

As is standard practice during the DOD solicitation process, information on commercial outlease proposals cannot be shared outside of the Source Selection Evaluation Board.  Such information is labeled "procurement sensitive" because the release of such information could provide a benefit to one commercial entity at the expense of another and result in an unfair competition.  More information will be provided at the completion of the solicitation process. 

For More Information

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