Lease Amendment to CP Kelco, U.S., Inc.

Lease Amendment to CP Kelco, U.S., Inc.

The proposed project includes a lease amendment (Project) of the existing lease agreement between the San Diego Unified Port District (District) and CP Kelco U.S., Inc. (Tenant) to extend the term of the lease up to 2029 with an option to extend to 2031. The proposed Project would also Include provisions to improve environmental conditions at the project site, including air and water quality, as well as the replacement and improvement of existing Infrastructure to improve environmental and operational efficiency for the equipment at the project site. The following are the proposed improvements to be implemented over the term of the lease: • Emissions-reductions: commitment to a 15% reduction of nitrogen oxide (NOx) emissions, to be achieved by replacement of propane forklifts with electric forklifts, implementation of a trash haul optimization program to reduce haul times and increase compaction of trash, replacement of all fleet vehicles at the Project site to electric vehicles, and conversion of all diesel-powered equipment and vessels to equipment and vessels utilized Tier 4 certified engines or greater; • Refurbishment of existing saltwater intake and distribution system: replacement or partial replacement of existing system to ensure it meets regulatory requirements and environmental standards; and • Warehouse availability: provision of up to approximately 17,840 square feet of existing warehouse space at the Project site to the District to utilize the existing infrastructure to support coastal-dependent operations. In addition, through the lease amendment, the Tenant would be required to complete a minimum of one Initial Capital Project. The Initial Capital Projects would contribute to overall emissions reductions and improve environmental and operational efficiency at the Project site. The selected Initial Capital Project(s) would require separate review for consistency with the California Environmental Quality Act and the California Coastal Act. The Applicant would be responsible for compliance with all laws and regulations associated with the activities on or in connection with the above-described premises, and in all uses thereof, including those regulating stormwater and hazardous materials, as well as acquiring necessary permits from relevant resource agencies, such as the California Coastal Commission, Army Corps of Engineers, and Regional Water Quality Control Board, including the necessary real estate or access agreements, or coastal development permitting for the proposed project sites that are not within the District's permitting or coastal jurisdiction. The following categorical determinations are based on the project submittal and all project information known to the District as of the date of this determination.

San Diego

San Diego

Southern California

San Diego