DFSP San Pedro Outlease Frequently Asked Questions

1.  What is Defense Fuel Support Point (DFSP) San Pedro, and why is it important?

DFSP San Pedro, began operation in 1943, and has provided a strategic location in the Pacific region for sourcing of fuel for Navy ships and other military entities. The facility has been used to receive, store, and distribute marine and jet fuels for military use in California, Arizona, and Nevada. Other than the Navy fuel pier in San Diego, it is the only Navy-owned facility potentially capable of ship fueling in the region.  DFSP San Pedro is a Special Area within the Naval Weapons Station Seal Beach area of responsibility.

2.  What is the Navy proposing to do, and why is it needed?

The Navy proposes to enter into a commercial outlease of DFSP San Pedro property and related pipelines. The need for the Proposed Action is to ensure the fullest possible use and continued maintenance of the Navy’s assets (e.g., the DFSP San Pedro Main and Marine Terminals and associated pipelines) through the commercial use of facilities and infrastructure.

3.  What is an outlease?

An outlease in this case refers to the leasing of military-owned property. The Navy would pursue an outlease to allow for retention of the property for future Navy use, sustainment of the Navy’s property, and collection of fair market value in exchange for a lessee’s use of DFSP San Pedro. The areas at DFSP San Pedro proposed for outlease consists of up to approximately 300 acres of the Main Terminal, with a second outlease including the approximately 8.3-acre Marine Terminal.

4.  When would commercial operations start at the Marine and Main terminals?

Commercial operations at the Main and Marine Terminals would start following the signing of commercial outlease agreements with the Navy.  The Marine Terminal lease is currently scheduled to be signed in fall 2022.   The Main Terminal lease is currently scheduled to be signed in early 2024, although this schedule could change depending upon the time required to complete environmental documentation. 

5.  How much would this project cost and where would the money come from?

Most project costs will be borne by the commercial lessees. Because of this, the full extent of the costs will not be known until the commercial outleases are awarded. The lessees would assume all expenses required to rehabilitate, operate, and maintain the complex.

6.  What happened to the Navy requirement to fuel ships?

The requirement for contingency fueling of Navy ships still exists, however, the Navy has made the decision to utilize other assets and capabilities to meet this need.

7.  Why is the Navy still moving forward with the outleases if there is no longer a need use the facilities to fuel Navy ships?

The properties are still considered to be a strategic location and asset, to be retained for future operational requirements.

8.  Is the Navy going to release a revised Draft Environmental Assessment on the Main Terminal site for further public review and comment?

The Navy has released the Final EA for the Marine Terminal lease. For the Main Terminal outlease, the Navy is currently determining if a Supplemental Environmental Assessment is needed.  If a Supplemental Environmental Assessment is needed, an additional public review and comment period would be included in this process.

9.  When will the Navy be able to provide more information on the future uses of the property?

The Navy will be able to provide more information following the completion of each individual solicitation process. The Marine Terminal solicitation is currently scheduled to complete in fall 2022. The Main Terminal solicitation is currently scheduled to complete in early 2024, once all environmental documentation is complete. 
 

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