[Federal Register Volume 63, Number 214 (Thursday, November 5, 1998)]
[Notices]
[Pages 59766-59775]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-29560]


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DEPARTMENT OF DEFENSE

Department of the Navy


Record of Decision for the Disposal and Reuse of Mare Island 
Naval Shipyard, Vallejo, CA

Summary

    The Department of the Navy (Navy), pursuant to Section 102(2)(C) of 
the National Environmental Policy Act of 1969 (NEPA), 42 U.S.C. 
Sec. 4332(2)(C), and the regulations of the Council on Environmental 
Quality that implement NEPA procedures, 40 CFR Parts 1500-1508, hereby 
announces its decision to dispose of mare Island Naval Shipyard in 
Vallejo, California.
    Navy and the City of Vallejo analyzed the impacts of the disposal 
and reuse of Mare Island Naval Shipyard in a Joint Environmental Impact 
Statement/Environmental Impact Report (EIS/EIR), as required by NEPA 
and the California Environmental Quality Act (CEQA), Cal, Pub. Res. 
Code, Sec. 21000, et seq. The EIS/EIR analyzed three reuse alternatives 
and identified the Mare Island Final Reuse Plan, described in the EIS/
EIR as the Reuse Plan Alternative, as the

[[Page 59767]]

Preferred Alternative. The Reuse Plan Alternative proposed industrial, 
commercial, residential, and educational uses, the development of 
public parks and recreational areas, expansion of the existing golf 
course, and extensive roadway improvements.
    Navy intends to dispose of the property in a manner that is 
consistent with the Mare Island Final Reuse Plan dated July 1994, as 
modified in March 1998 (Reuse Plan). The City of Vallejo, the Local 
Redevelopment Authority (LRA) for Mare Island Naval Shipyard, prepared 
the Reuse Plan.
    In deciding to dispose of mare Island Naval Shipyard in a manner 
consistent with the Reuse Plan, Navy has determined that a mixed land 
use will meet the goals of achieving local economic redevelopment, 
creating new jobs, and providing additional housing, while limiting 
adverse environmental impacts and ensuring land uses that are 
compatible with adjacent property. This Record Of Decision does not 
mandate a specific mix of land uses. Rather, it leaves selection of the 
particular means to achieve the proposed redevelopment to the acquiring 
entity and the local zoning authority.

Background

    Under the authority of the Defense Base Closure and Realignment Act 
of 1990 (DBCRA), Public Law 101-5 10, 10 U.S.C. Sec. 2687 note, the 
1993 Defense Base Closure and Realignment Commission recommended the 
closure of Mare Island Naval Shipyard. This recommendation was approved 
by President Clinton and accepted by the One Hundred Third Congress in 
October 1993. Mare Island Naval Shipyard closed on April 1, 1996, and 
Navy is currently maintaining the property in an inactive caretaker 
status.
    Mare Island Naval Shipyard is located on the western edge of the 
City of Vallejo in Solano County, California, about 30 miles northeast 
of the City of San Francisco. The 5,252-acre property consists of four 
parcels: Mare Island comprising 5,197 acres; main entrance complex and 
railroad spur comprising 26 acres in the City of Vallejo; a housing 
complex comprising 29 acres in Vallejo; and a bulkhead in Vallejo.
    Most of the Shipyard is situated on Mare Island, which lies west of 
the Napa River and mare Island Strait into which the river flows. About 
3.5 miles long, the island is just west of the City and its axis runs 
approximately northwest to southeast. The eastern half of Mare Island 
is developed with about 960 buildings that contain about 10.5 million 
square feet of space. It lies adjacent to Mare Island Strait. The 
western half of Mare Island is composed largely of wetlands, dredge 
material disposal ponds, and submerged lands. It lies adjacent to San 
Pablo Bay. The southern end of Mare Island touches Carquinez Strait.
    The State of California granted about 3,629 acres of tidal and 
submerged lands to the United States for the establishment of a Naval 
base at Mare Island. These grants were issued in 1854, 1897, and 1963. 
By the terms of these grants, title to the property reverts to the 
State of California when the United States no longer occupies the ceded 
lands for military purposes, as in the case of the 1854 statute, or no 
longer continues to hold and own the adjacent lands, as in the case of 
both the 1897 and 1963 statutes. Navy has no discretion regarding the 
return of this property to the state of California nor any authority to 
control its use after reversion.
    During the Federal screening process, six Federal agencies 
requested interagency transfers of base closure property at Mare 
Island. These included the Department of Agriculture's United States 
Forest Service, the United States Coast Guard, the Department of the 
Interior's United States Fish and Wildlife Service, the Department of 
the Army, the Department of Justice's Immigration and Naturalization 
Service, and the Department of the Air Force.
    Navy will transfer 207 acres of Shipyard property to four of these 
Federal agencies. Navy has already transferred part of the former 
Combat Systems Technical School (Buildings 1306 and 1324) and about 8 
acres of land in the southern part of the base to the United States 
Forest Service for use as the headquarters for its Pacific Southwest 
Region.
    Navy will transfer about one acre in the southern part of the base 
to the Coast Guard for the operation of a communications tower. 
Additionally, Navy will grant the Coast Guard easements to permit it to 
continue operating a navigational aid and vessel traffic service remote 
radar on Pier 35 at the southeastern tip of Mare Island.
    Navy will transfer about 162 acres in the north central part of the 
base that contain wetlands, dredge material disposal ponds, and 
Building 505 to the United States Fish and Wildlife Service. The 
Service will use this property to enlarge the San Pablo Bay National 
Wildlife Refuge and establish a wildlife interpretive center. While the 
Service initially requested 670 acres, 508 of those acres will revert 
to the State of California. Thus, only 162 acres were available for 
this interagency transfer.
    Navy will transfer about 36 acres in the southeastern part of the 
base to the Department of the Army for use as an Army Reserve Center. 
Army initially also requested an interagency transfer of 600 housing 
units at Roosevelt Terrace but later withdrew that request.
    The Immigration and Naturalization Service initially requested an 
interagency transfer of three buildings on Mare Island for use as a 
detention facility, but subsequently withdrew its request. Similarly, 
the Department of the Air Force expressed interest in 481 housing units 
and supporting facilities on Mare Island, but subsequently withdrew its 
request.
    After the Federal screening process had concluded, Navy received 
additional expressions of interest in base closure property at Mare 
Island from the United States Department of Agriculture and the 
Department of the Interior's National Park Service. Both agencies 
subsequently withdrew their requests.
    The remaining property, comprising about 1,416 acres, is surplus to 
the needs of the Federal Government. Therefore, in this Record Of 
Decision, the Federal action is the disposal of 1,416 acres of surplus 
Federal property associated with Mare Island Navy Shipyard.
    Navy published a Notice of Intent in the Federal Register on 
September 1, 1994, announcing that Navy and the City of Vallejo would 
prepare a Joint EIS/EIR to analyze the impacts of disposal and reuse of 
the land, buildings, and infrastructure at Mare Island Navy Shipyard. 
Navy and Vallejo held a public scoping meeting at the John F. Kennedy 
Library in Vallejo on September 22, 1994, and the scoping period 
concluded on October 21, 1994.
    On September 1, 1995, Navy and Vallejo distributed a Draft EIS/EIR 
(DEIS/EIR) to Federal, State, and local agencies, interested parties, 
and the general public. On September 27, 1995, Navy held a public 
hearing concerning the DEIS/EIR at Vallejo City Hall. During the 45-day 
review period after publication of the DEIS/EIR, Federal, State, and 
local agencies, community groups and associations, and the general 
public submitted oral and written comments concerning the DEIS/EIR. 
These comments and Navy's responses were incorporated in the Final EIS/
EIR (FEIS/EIR), which was distributed to the public on May 1, 1998, for 
a 30-day review period that concluded on June 1, 1998. Navy received 
nine letters concerning the FEIS/EIR.

[[Page 59768]]

Alternatives

    NEPA requires Navy to evaluate a reasonable range of alternatives 
for the disposal and reuse of this surplus Federal property. In the 
Joint EIS/EIR, Navy and Vallejo analyzed the environmental impacts of 
three ``action'' alternatives that could result from the disposal of 
Mare Island Naval Shipyard property. In the NAPA process, Navy also 
evaluated a ``No action'' alternative that would leave the property in 
a caretaker status with Navy maintaining the physical condition of the 
property, providing a security force, and making repairs essential to 
safety.
    The City of Vallejo developed the Reuse Plan with extensive public 
involvement and comment that began with its establishment of the Mare 
Island Futures Project in October 1993. Vallejo created the Mare Island 
Futures Work Group to guide the reuse planning process. This Group was 
composed of representatives from local government, labor, business, 
educational institutions, environmental organizations, and private 
citizens who were interested in the reuse of Mare Island Naval 
Shipyard.
    In November 1993, the Work Group completed a Conceptual Reuse Plan 
that was accepted by the Vallejo City Council in December 1993. In 
April 1994, Vallejo evaluated the market feasibility of the Conceptual 
Reuse Plan. Based upon the findings of the market feasibility study and 
an economic analysis, the Work Group prepared the Final Reuse Plan. 
During preparation of the Final Reuse Plan, all Work Group meetings 
were open to the public. This Plan addressed all of the property 
associated with Mare Island Naval Shipyard, and in July 1994, the 
Vallejo City Council accepted the Mare Island Final Reuse Plan.
    After the Plan was completed and the reversionary property and 
Federal agency requests for base closure property were considered, Navy 
determined that about 3,629 acres on Mare Island would revert to the 
State of California and about 207 acres on Mare Island would be 
transferred to other Federal agencies. In March 1998, Vallejo modified 
the Final Reuse Plan to take account of the Department of the Army's 
request for an interagency transfer of base closure property.
    The Preferred Alternative, designated in the FEIS/EIR as the Reuse 
Plan Alternative, would implement the Reuse Plan for the surplus 
Shipyard property. This alternative proposed extensive use of existing 
structures and land uses that were similar to Navy's use of the 
property. In particular, the Reuse Plan Alternative proposed 
industrial, commercial, residential and educational uses as well as 
expansion of the nine-hole golf course to 18 holes and relocation of 
the rifle range activity from the center of Mare Island to an 
undeveloped area in the southeastern part of the island.
    The Reuse Plan also proposed to build a bridge across Mare Island 
Strait and to redevelop the southeastern part of Mare Island for retail 
commercial and residential uses. Additionally, this alternative 
proposed to make extensive roadway improvements that would serve the 
proposed redevelopment. Under the Reuse Plan, there are about 81 acres 
of wetlands in the northeastern, central, southern and southeastern 
parts of the base available for disposal that will be protected by 
conservation easements or similar real estate instruments.
    The Reuse Plan designated 13 Reuse Areas on the eastern side of 
Mare Island and identified wetland, submerged land, and dredge material 
disposal areas on the eastern and western sides and at the southern end 
of Mare Island. Although not included within these 13 Reuse Areas, the 
main entrance office building and causeway bridge, the railroad spur, 
the Roosevelt Terrace housing complex, and the bulkhead are also 
addressed in the Reuse Plan.
    Reuse Area 1, the North Light Industry Area, covers about 192 acres 
at the northern end of Mare Island. It contains buildings that are 
surrounded by paved or grassy open areas. Navy used this part of the 
base for warehouse activity and light industrial, retail, 
administrative, residential, and recreational activities. Under the 
Reuse Plan, this area would contain an industrial park. The 29-acre 
wetland area on its eastern boundary will be protected by a 
conservation easement or similar real estate instrument.
    Reuse Area 2, the Neighborhood Center, covers 85 acres located 
south of the North Light Industry Area. It contains recreational 
facilities, i.e., the base theater, gymnasium, and athletic fields. 
Under the Reuse Plan, this area would be used for community and social 
services and housing.
    Reuse Area 3, the Office and Light Industry Area, covers 111 acres 
and consists of historic and non-historic industrial and office 
buildings in the eastern part of Mare Island, south of the North Light 
Industry area. Under the Reuse Plan, this part of the base would be 
redeveloped as a small business and residential complex. Some 
buuildings would be subdivided to provide residential units, and other 
buildings would be demolished to provide space for parking. A 
waterfront promenade would extend along the length of this Reuse Area.
    Reuse Area 4, the Historic District, covers about 47 acres along 
the waterfront in the east central part of Mare Island. The historic 
resources located here such as Saint Peter's Chapel, Alden Park, 21 
houses, and Drydock 1 are components of the area that the Secretary of 
the Interior designated in 1976 as the Mare Island Naval Shipyard 
National Historic Landmark. Under the Reuse Plan, the area along the 
waterfront would be used for ship repair, historic ship restoration, 
and an extension of the waterfront promenade. Saint Peter's Chapel and 
Alden Park would be used for tours and special events and as visitor 
attractions. The historic houses would be used for permanent private 
residences, guest lodging, restaurants, and as office space. Because of 
the presence of these historic structures, there would be very little 
demolition in this Reuse Area.
    Reuse Area 5, the Heavy Industry Area, covers 119 acres along the 
waterfront south of the Historic District. Navy will transfer Pier 22, 
Buildings 573 and 743, and about 7 acres here to Army for use as part 
of the Reserve Center. The remaining 112 acres are available for reuse. 
This area, which Navy formerly used for shipbuilding and ship repair, 
contains some of the largest buildings on Mare Island, two drydocks, 
and several overhead cranes.
    Under the Reuse Plan, this property would be used for 
manufacturing, e.g., metal processing and fabrication and 
biotechnology. The railroad lines that serve this area would remain in 
their present configuration. Historic buildings and landmarks would be 
preserved, and the waterfront promenade would be extended, to the 
extent practicable, into the industrial shoreline area.
    Reuse Area 6, Farragut Village, covers 107 acres and is located 
west of the Historic District. It contains duplex residences, barracks, 
an elementary school building, and adjacent playgrounds. About 15 acres 
in this Reuse Area, where 30 duplex housing units are located, will 
revert to the State of California. The remaining 92 acres are available 
for reuse.
    Under the Reuse Plan, these 92 acres would contain residential 
structures and retail stores. The Vallejo Unified School District would 
continue to operate the elementary school and playgrounds. The 32-acre 
wetland at the northwest boundary of this Reuse Area will be protected 
by a conservation easement or similar real estate instrument.
    Reuse Area 7, the Developed Recreation Area, covers 48 acres in the

[[Page 59769]]

center of Mare Island, south of Farragut Village. This Reuse Area 
contains the rifle range, open laydown storage areas, and undeveloped 
lands. About 36 of the 48 acres in this part of the base will revert to 
the State of California, including most of the property where the rifle 
range is currently located. The remaining 12 acres are available for 
reuse. Under the Reuse Plan, this property would be redeveloped for 
recreational uses, i.e., athletic fields and enlargement of the nine-
hole golf course. The rifle range activity would be moved to the 
southeastern part of Mare Island.
    Reuse Area 8, Coral Sea Village, is a 70-acre residential 
development with a parade ground located southeast of the Developed 
Recreation Area. Under the Reuse Plan, this area would be used for 
housing. The parade ground would be used as a recreational field.
    Reuse Area 9, the Education and Office Area, covers 101 acres in 
the south central part of the base between Reuse Area 5 (Heavy 
Industry) and Reuse Area 8 (Coral Sea Village). It contains the 30-
building school and campus of the former Combat Systems Technical 
School, office buildings and a large electrical shop (Building 866). 
Navy has transferred Buildings 1306 and 1324 and about 8 acres of land 
to the Forest Service for use as the headquarters for its Pacific 
Southwest Region. Navy will transfer 9 buildings (A-272, 726, 776, 930, 
934, 936, 938, 1294, and 1296) and about 13 acres here to Army for use 
as part of the Reserve Center. The remaining 80 acres are available for 
reuse. Under the Reuse Plan, the school and campus, the office 
buildings, and the electrical shop would be used for educational 
activities and as a conference center.
    Reuse Area 10, the Retail and Residential Area, covers 94 acres 
adjacent to Mare Island Strait in the southeastern part of the base, 
south of the Heavy Industry Area. Navy will transfer Pier 23, 6 
buildings (A-279, 597, 724, 736, 762, and FA1-0) and about 16 acres 
here to Army for use as part of the Reserve Center. The remaining 78 
acres are available for reuse.
    This Reuse Area contains vacant lots and many small buildings that 
would be demolished. Under the Reuse Plan, a retail commercial complex 
and residential apartments and condominium units would be built in this 
part of the base. The 9-acre wetland area along the eastern edge next 
to Mare Island Strait will be protected by a conservation easement or 
similar real estate instrument. Where practicable, the waterfront 
promenade would be extended into Reuse Area 10. A southern crossing 
bridge across Mare Island Strait, connecting Mare Island with the City 
of Vallejo, would be built in this area but its precise location has 
not yet been determined.
    Reuse Area 11, the Golf Course Area, is located in the south 
central part of Mare Island and covers about 172 acres. It consists of 
the existing nine-hole golf course and clubhouse and undeveloped open 
space. Under the Reuse Plan, the nine-hole golf course, now covering 
about 100 acres, would be expanded to 18 holes over 172 acres. The 
existing clubhouse and parking facilities would also be expanded.
    Reuse Area 12, the Regional Park, covers about 241 acres of 
undeveloped property at the southeastern end of Mare Island. The FEIS/
EIR erroneously stated that Reuse Area 12 contained 172 acres and that 
69 acres of dredge material disposal ponds were available for disposal. 
There are actually 241 acres of property in Reuse Area 12, and there 
are no dredge material disposal ponds here. Navy will transfer a one-
acre site in this part of the base to the Coast Guard for its 
communications tower, and about 10 acres will revert to the State of 
California. The remaining 230 acres are available for reuse.
    Under the Reuse Plan, public recreational facilities would be built 
here. Walking, bicycling, and equestrian paths and trails would link 
the various parts of Mare Island, particularly the wetland and dredge 
material disposal ponds to the west with the waterfront promenade along 
the eastern shoreline. These trails would be designed and built in a 
manner that preserves the natural terrain and character of the island. 
The 11-acre wetland area along the southeastern edge of Reuse Area 12 
will be protected by a conservation easement or similar real estate 
instrument. The Regional Park would also provide horse stables and a 
rifle range. These facilities are currently located on reversionary 
property in the center of the island. The cemetery in Reuse Area 12 
would be preserved as an historic cemetery.
    Reuse Area 13, the Open Space and Recreation Area, covers 92 acres 
and is located on a landfill site between the dredge material disposal 
ponds and the nontidal wetlands in the northwestern part of Mare Island 
west of the wetlands adjacent to Reuse Area 2, the Neighborhood Center. 
The entire area is located on property that will revert to the State of 
California.
    There is additional surplus Shipyard property that is located off 
the island in the City of Vallejo and covers about 55 acres. The main 
entrance office building, the causeway bridge, the railroad spur, and 
the bulkhead cover about 26 acres, and the Roosevelt Terrace housing 
complex covers about 29 acres. Under the Reuse Plan, the main entrance 
office building would be used for retail commercial activities or 
professional office space; the causeway bridge would continue to serve 
as the primary access to Mare Island; and the railroad spur would be 
used to support industrial and commercial activities on Mare Island 
that require rail service.
    The Roosevelt Terrace housing complex is located in Vallejo, about 
one mile northeast of the main entrance office building. Under the 
Reuse Plan, half of this 600-unit housing complex would be remodeled 
for residential use. The remaining housing units would be demolished to 
provide space for landscaping, recreational activities, and parking.
    The bulkhead is located in Vallejo across Mare Island Strait from 
the southeastern end of Mare Island. Under the Reuse Plan, this 2,150 
foot concrete and stone bulkhead would continue to serve as a 
breakwater.
    In the NEPA process, Navy considered a second ``action'' 
alternative, described in the FEIS/EIR as the Medium Density 
Alternative. In the Medium Density Alternative, the reuse of Mare 
Island Naval Shipyard would be similar to that proposed in the 
Preferred Alternative but with reduced development densities, i.e., 
less new construction and fewer people. This alternative includes the 
same 81 acres of wetlands that would be protected by conservation 
easements or similar real estate instruments.
    The southern crossing bridge across Mare Island Strait, linking 
Mare Island with Vallejo, would not be built. Reuse Area 10, the Retail 
and Residential Area, would not be developed. The rifle range activity 
would remain at its present location in Reuse Area 7, the Developed 
Recreation Area. No new apartment or condominium units and a minimal 
number of industrial and commercial structures would be built. Instead, 
existing facilities would be converted for industrial, commercial, and 
residential reuse.
    Navy also considered a third ``action'' alternative, described in 
the FEIS/EIR as the Open Space Alternative. In the Open Space 
Alternative, there would be substantially less development than in the 
Preferred Alternative.
    The southern crossing bridge linking Mare Island and Vallejo would 
not be built. Reuse Area 10, the Retail and Residential Area, would not 
be developed. The sites of the existing rifle range and golf course 
would be used as

[[Page 59770]]

open space in an expanded Regional Park covering 344 acres. No new 
industrial, commercial, and residential structures would be built. 
Instead, existing facilities would be converted for reuse. This 
alternative also includes the same 81 acres of wetland that would be 
protected by conservation easements of similar real estate instruments.

Environmental Impacts

    Navy analyzed the direct, indirect, and cumulative impacts of the 
disposal and reuse of this Federal property. The EIS/EIR addressed 
impacts of the Preferred Alternative, the Medium Density Alternative, 
the Open Space Alternative, and the ``No action'' alternative for each 
alternative's effects on land use, socioeconomic, public services, 
cultural resources, aesthetics and scenic resources, biological 
resources, water resources, geology and soils, traffic and circulation, 
air quality, noise, utilities, and hazardous materials and waste.
    The direct environmental impacts are those associated with Navy's 
proposed disposal of 1,416 acres of surplus Shipyard property and with 
the ``No action'' alternative. The indirect impacts are those 
associated with the reuse of this surplus property. The cumulative 
impacts are those associated with reuse of the Shipyard property that 
reverts to the State of California (3,629 acres), the Shipyard property 
that will be transferred to other Federal agencies (207 acres), and 
other projects within the Vallejo area.
    No significant direct impacts will result from Navy's disposal of 
the surplus Shipyard property. Therefore, this Record Of Decision 
focuses on the indirect and cumulative impacts that are likely to 
result from implementation of the Reuse Plan Alternative, designed in 
the FEIS/EIR as the Preferred Alternative.
    The Preferred Alternative would he significant impacts on land use. 
The intensive development of new retail commercial and residential 
structures in the Retail and Residential Area in the southeastern part 
of Mare Island would not be compatible with the proposed open space and 
passive recreational uses of the adjacent Regional Park. The proposed 
relocation of the rifle range activity to the Regional Park would also 
conflict with the proposed recreational use of this park because it 
would introduce safety concerns, noise, and new structures into this 
otherwise undeveloped area.
    The proposed southern crossing bridge would have significant land 
use impacts on both Mare Island and Vallejo. Siting the bridge in the 
southeastern part of Mare Island would not be compatible with the 
proposed residential and open space uses planned for that property. It 
could also require construction in a shoreline area that contains 
sensitive wetland habitat that will be protected by the conservation 
easement. In the City of Vallejo, construction of the proposed bridge 
could divide and substantially alter the South Vallejo residential and 
commercial neighborhood by virtue of the need to demolish buildings and 
other structures and increase the size of roadways serving this area.
    The proposed redevelopment in Reuse Areas 3, 4, 5, 10, and 12 
(Office and Light Industry, Historic District, Heavy Industry, Retail 
and Residential, and Regional Park) would involve the construction of 
new buildings, roads, and utilities. In order to accommodate this 
redevelopment, it may be necessary to remove and relocate segments of 
the dredge slurry pipelines that traverse these Reuse Areas as well as 
their supporting facilities. Navy used these pipelines to carry 
material dredged from Mare Island Strait across the island to the 
dredge material disposal ponds on the western side of Mare Island.
    The Preferred Alternative would not have any adverse effect on 
employment and housing in the Vallejo area. On the contrary, the Reuse 
Plan would generate about 9,669 jobs on Mare Island and add about 1,786 
dwelling units to the Vallejo area. Similarly, the proposed 
redevelopment of the Shipyard would substantially increase the amount 
of public recreational resources available in Vallejo.
    The Preferred Alternative would have significant impacts on 
schools. Student enrollment would exceed capacity at the Mare Island 
Elementary School that serves Mare Island and at the Federal Terrace 
School that serves the Roosevelt Terrace Housing Complex in Vallejo. 
The Vallejo Unified School District would be responsible for providing 
facilities to accommodate the additional students.
    The Preferred Alternative would also have significant impacts on 
police and fire protection and emergency medical services. A 
substantial increase in the demand for these services in the Vallejo 
area would result from the increased population and redevelopment on 
Mare Island.
    The Preferred Alternative would not have a significant impact on 
cultural resources. Many of the historic buildings, structures, and 
landscapes will be preserved. However, some demolition and construction 
activities would take place within the Mare Island Naval Shipyard 
Historic District and in sensitive archaeological areas.
    Navy has completed consultation pursuant to Section 106 of the 
National Historic Preservation Act, 16 U.S.C. Sec. 470(f), and its 
implementing regulations, ``Protection of Historic Properties'', 36 CFR 
Part 800, with the California State Historic Preservation Officer 
(SHPO) and the Advisory Council on Historic Preservation (ACHP). This 
consultation addressed the potential adverse effects of the Reuse Plan 
on the Mare Island Naval Shipyard Historic District, which is listed on 
the National Register of Historic Places and includes the properties 
comprising the Mare Island Naval Shipyard National Historic Landmark. 
In particular, the consultation considered the demolition of historic 
buildings and structures and the construction of new buildings within 
the Mare Island Naval Shipyard Historic District and in sensitive 
archaeological areas.
    The consultation also identified measures to be taken by Navy and 
Vallejo that would avoid or mitigate adverse effects on Mare Island's 
historic properties. These measures are set forth in the Memorandum Of 
Agreement Among the United States Navy, the Advisory Council on 
Historic Preservation and the California State Historic Preservation 
Officer Regarding the Layaway, Caretaker Maintenance, Leasing, and 
Disposal of Historic Properties on the Former Mare Island Naval 
Shipyard, Vallejo, California, dated April 1, 1997 (MOA). This MOA was 
executed by Navy, the SHPO, and the ACHP and concurred in by the City 
of Vallejo and the National Park Service.
    Under the terms and conditions of this MOA, Navy will secure and 
maintain the historic properties and implement a program of recording 
representative historic buildings according to the standards of the 
Historic American Engineering Record or the Historic American Buildings 
Survey before conveying any property at Mare Island Naval Shipyard. The 
City will extend the protection of its historic preservation ordinance 
to include all of the historic properties in Reuse Area 4 (the Historic 
District) and selected historical buildings, structures, and landscape 
features elsewhere within the Mare Island Naval Shipyard Historic 
District. Vallejo will also ensure compliance with those requirements 
of the California Environmental Quality Act applicable to the 
protection of historic archaeological sites.
    The Preferred Alternative would have significant impacts on 
aesthetics and scenic resources. The proposed walking,

[[Page 59771]]

bicycling, and equestrian trails and the rifle range and horse stables 
in the Regional Park at the southwestern end of the island would be 
visible from many places in the Vallejo area. Similarly, the proposed 
southern crossing bridge across Mare Island Strait would have a 
significant impact on aesthetics and scenic resources because it would 
also be visible from many places in the Vallejo area.
    The Preferred Alternative could have adverse effects on biological 
resources. In general, the proposed construction and redevelopment in 
areas adjacent to wetlands could add sediment to those resources. 
Construction of the southern crossing bridge could have a negative 
impact if the project were to include removal of shoreline wetlands 
and/or sensitive species habitat such as that which lies adjacent to 
the proposed retail and residential development in Reuse Area 10. If 
construction of this bridge would result in the placement of fill in a 
wetland, permits required by Section 404 of the Clean Water Act, 33 
U.S.C. Sec. 1251, et seq., must be obtained from the United States Army 
Corps of Engineers.
    Navy has completed consultations with the National Marine Fisheries 
Service and the United States Fish and Wildlife Service pursuant to 
Section 7 of the Endangered Species Act, 16 U.S.C. Sec. 1531, et seq. 
In a letter dated March 29, 1996, the National Marine Fisheries Service 
concurred that the endangered winter-run chinook salmon would not be 
adversely affected by the proposed redevelopment. On May 23, 1997, the 
U.S. Fish and Wildlife Service issued a Biological Opinion in which it 
concluded that the disposal and reuse of Mare Island Naval Shipyard 
property would not jeopardize the continued existence of the endangered 
California clapper rail, the endangered salt marsh harvest mouse, the 
threatened Delta smelt, or the proposed threatened Sacramento 
splittail.
    The Service's Opinion was conditioned upon Navy and the City of 
Vallejo implementing measures that will protect these species. Before 
disposal, Navy will protect the California clapper rail and salt marsh 
harvest mouse by providing predator management (i.e., monitoring, 
managing, and removing predators likely to adversely affect these 
species) and by establishing conservation easements or similar real 
estate instruments on the 81 acres of wetlands that provide suitable 
habitat for these species.
    Navy expects that the conservation easements or similar real estate 
instruments will be held and administered by the U.S. Fish and Wildlife 
Service. Additionally, in accordance with Executive Order 11990, 
Protection of Wetlands, dated May 24, 1977, Navy will place a Notice in 
the conveyance document that describes the conservation easements or 
similar real estate instruments and identifies those uses that are 
restricted by Federal, State, and local wetland regulations.
    Navy will also develop a predator management plan and a public 
access management program for Mare Island Naval Shipyard that it will 
implement during the caretaker period preceding conveyance. After 
conveyance of the surplus Shipyard property, the City of Vallejo will 
be responsible for implementing a similar plan and program. Vallejo 
will also limit the number of cats and dogs allowed in each residential 
unit on Mare Island and will restrict cats and unleashed dogs to the 
property lines of individual housing units.
    Navy will protect the Delta smelt and the Sacramento splittail by 
providing a Notice in the conveyance document that future users of the 
drydocks and other waterfront property at Mare Island such as piers, 
berths, and pilings may be required to obtain endangered species 
incidental take permits from the National Marine Fisheries Service, the 
U.S. Fish and Wildlife Service, and the California Department of Fish 
and Game.
    The Preferred Alternative could degrade water resources. Demolition 
and construction activities may disturb the soil, increasing erosion 
and sedimentation into Mare Island Strait. Thus, the California Water 
Resources Board and the Regional Water Quality Control Board will 
impose controls on redevelopment that require the use of stormwater 
pollution prevention plans and best management practices.
    Certain property on Mare Island could be subject to flooding from 
high tides and water flow on the Napa River and as a result of land 
subsidence and rising sea level. Those parts of the North Light 
Industry, Office and Light Industry, Historic District, Heavy Industry, 
and Retail and Residential Areas with elevations less than 10 feet 
above sea level could be flooded if not adequately protected. 
Consequently, the acquiring entity must comply with the Vallejo 
Municipal Code, Title VII, Chapter 7.98, Flood Damage Protection. 
Additionally, in accordance with Executive Order 11988, Floodplain 
Management, dated May 24, 1997, Navy will place a Notice in the 
conveyance document that describes those uses that are restricted under 
Federal, State, and local floodplain regulations.
    Dredging the ship berths along the eastern side of Mare Island 
could expose aquatic organisms in the flood chain to disturbed 
contaminated sediments from Mare Island Strait. The nature and extent 
of these impacts cannot be determined before the sediments have been 
tested and the dredging methods and dredge disposal sites have been 
selected. It may be necessary to use special dredging equipment such as 
closed clamshell buckets that would minimize the escape and dispersion 
of contaminated water and sediment. In any event, the acquiring entity 
will be required to obtain permits for such dredging from the U.S. Army 
Corps of Engineers under Section 404 of the Clean Water Act, 33 U.S.C. 
Sec. 1251, et seq.
    The Preferred Alternative would have significant impacts on geology 
and soils. As discussed earlier, certain parts of Mare Island could be 
subject to flooding from naturally occurring high water levels. In 
addition, the southern end of Reuse Area 10, the Retail and Residential 
Area, could be flooded if the saltwater reservoir dam in Reuse Area 
12's Regional Park were to fail. Similarly, if the Golf Course's 
freshwater reservoir dam in Reuse Area 11 were to fail, the resultant 
flooding would affect nearby wetland and open space areas.
    Additionally, the Preferred Alternative would allow redevelopment 
in parts of Mare Island that contain potential geological hazards. 
Because the Shipyard is located in a seismically active area, buildings 
there would be susceptible to structural damage from ground shaking, 
liquefaction of soil, and slope failures that may occur during a large 
earthquake.
    The Preferred Alternative would have significant impacts on traffic 
and circulation. Although the proposed reuse would generate about 
60,224 average daily vehicle trips, significantly less than the 76,350 
average daily vehicle trips that were associated with Navy's use of the 
Shipyard property, the Preferred Alternative would result in an 
increase in truck traffic during construction and subsequent reuse. 
This increased truck traffic, arising out of the proposed warehouse and 
industrial activities, could cause traffic congestion during peak 
commuting periods.
    Additionally, these trucks would be traveling on narrow Mare Island 
roadways that were not designed to accommodate such traffic, 
introducing safety hazards for other vehicles. The use of railroad 
lines that run on the causeway bridge and on and close to Mare Island's 
roadways would pose similar safety hazards. Neither the

[[Page 59772]]

railroad lines nor the roadways were designed to accommodate the nature 
and extent of public use proposed in the Reuse Plan.
    The Preferred Alternative would have a significant impact on air 
quality. Local dust would be generated during demolition, renovation, 
and construction activities, including construction of the southern 
crossing bridge.
    Section 176(c) of the Clean Air Act, 42 U.S.C. Sec. 7506, as 
amended, requires Federal agencies to review their activities to ensure 
that they do not hamper local efforts to control air pollution. This 
statute prevents Federal agencies from conducting activities that do 
not conform to an approved implementation plan. The United States 
Environmental Protection Agency regulations implementing this statute 
recognize certain categorically exempt activitities. Conveyance of 
title to real property and leases in furtherance of conveyance that 
meet certain criteria are categorically exempt activities. 49 CFR 
Sec. 93.153(c)(2). Accordingly, the disposal of Mare Island Naval 
Shipyard property does not require Navy to conduct a conformity 
determination.
    Navy holds Bay Area Air Quality Management District (BAAQMD) air 
emission reduction credits (ERCs) for stationary air emission sources 
such as the boilers, paint spray booths, and fuel storage facilities 
and historically produced air emissions at Mare Island Naval Shipyard. 
These ERCs include 18.9 tons of nitorgen oxides, 12.7 tons of precursor 
organic compounds, one ton of non-precursor organic compounds, 1.2 tons 
of particulate matter (PM10), 11.5 tons of carbon monoxide, and 0.9 
tons of sulfur oxides. Navy has placed these ERCs in the BAAQMD 
Emission Bank, from which they can be withdrawn later to offset air 
emissions from new sources. Navy will retain the stationary source ERCs 
to meet the future permit requirements of Department of Defense 
facilities and activities. If there are no future Department of Defense 
needs, the credits will be reallocated.
    Navy also documented, as part of the NEPA process, mobile source 
emissions associated with the operation of motor vehicles and other 
non-stationary sources such as locomotives, vessels, and portable 
generators at Mare Island. These mobile emission sources historically 
produced 259 tons per year of reactive organic compounds, 397 tons per 
year of nitrogen oxides, 1,823 tons per year of carbon monoxide, 50 
tons per year of sulfur oxides, and 60 tons per year of particulate 
matter (PM10).
    The mobile sources emission reductions resulting from the closure 
of Mare Island can be applied to offset emissions from other Federal 
mobile sources to satisfy Federal Clean Air Act conformity 
determinations in the area. Navy will retain the mobile source offsets 
to meet future Federal Clean Air Act conformity requirements.
    The Preferred Alternative would have significant temporary noise 
impacts on adjacent lands use arising out of demolition, renovation, 
and construction activities, including construction of the proposed 
southern crossing bridge. Noise levels in residential areas along Cedar 
Avenue between Seventh Street and Twelfth Street and at some other 
locations would significantly increase as a result of the increased 
traffic generated by the proposed reuse. In addition, a significant 
noise impact would result from use of the proposed rifle range in the 
Regional Park in Reuse Area 12. Noise generated at this rifle range 
would adversely affect the nearby residential areas and passive 
recreational uses of the Regional Park.
    The Preferred Alternative would have a significant impact on one 
utility system. The existing sanitary waste water collection system 
lacks sufficient capacity to serve areas where there will be 
substantial increases in users, such as the planned residential 
development in Reuse Area 10. Consequently, it will be necessary for 
the acquiring entity to upgrade and improve the existing system in 
those areas where significant increases in population would result from 
the proposed redevelopment.
    The Preferred Alternative would not have a significant impact on 
the other utility systems that serve Mare Island, i.e., water 
distribution, solid waste management, natural gas, electric power, and 
storm water drainage. Navy will convey easements and rights-of-way to 
permit the continuing operation and maintenance of the communications, 
electricity, and natural gas utility systems at Mare Island that have 
already been conveyed to local utility providers.
    Implementation of the Preferred Alternative would not have any 
impact on existing environmental contamination at Mare Island Naval 
Shipyard. Before conveyance, Navy will remediate contamination from 
hazardous substances and investigate and remove unexploded ordnance in 
a manner that protects human health and the environment. If Navy 
conveys property at Mare Island Naval Shipyard before completion of the 
required remediation, Navy will endure that the property is suitable 
for disposal for its intended use. In either case, Navy will inform 
future property owners about the environmental condition of the 
property and may, where appropriate, include restrictions, 
notifications, or covenants in deeds to ensure protection of human 
health and the environment in light of the intended use of the 
property.
    No significant adverse impacts would be cause by the hazardous 
materials and hazardous waste that may be used and generated by the 
Preferred Alternative. The quantity of hazardous materials used, 
stored, and disposed of, and the quantity of hazardous waste generated 
on the property will be less under the Preferred Alternative than 
during Navy's use of the Shipyard property. Hazardous materials used 
under the Preferred Alternative will be managed according to applicable 
Federal and State regulations. Hazardous wastes transported for 
disposal or generated under the Preferred Alternative and stored for 
more than 90 days will be controlled by the Resource Conservation and 
Recovery Act of 1976, (RCRA), 42 U.S.C. Sec. 6901, et seq.
    Navy also analyzed the impacts of low-income and minority 
populations pursuant to Executive Order 12898, Federal Actions to 
Address Environmental Justice in Minority Populations and Low-Income 
Populations, reprinted in 42 U.S.C. Sec. 4321 note. Construction of the 
proposed southern crossing bridge could have disproportionate and 
adverse land use, noise, traffic, and air quality impacts on the 
minority and low-income residential neighborhood in South Vallejo. The 
acquiring entity could avoid adversely affecting this neighborhood by 
siting the Vallejo access to the bridge in an industrial area at Solano 
Avenue.
    A separate environmental analysis will be conducted, with public 
participation, when the City selects a right-of-way for the bridge. 
Consultation and coordination with Federal, State, and local 
environmental and permitting agencies will be required throughout the 
project review and approval process. No other disproportionately high 
and adverse human health or environmental effects would be experienced 
by minority and low-income populations as a result of the Preferred 
Alternative.
    Navy also analyzed the impacts on children pursuant to Executive 
Order 13045, Protection of Children from Environmental Health and 
Safety Risks, dated April 21, 1997. Under the Preferred Alternative, 
the largest concentration of children would be present in the 
residential, educational, and recreational areas on Mare Island and at 
the Roosevelt Terrace housing

[[Page 59773]]

complex in the City of Vallejo. The Preferred Alternative would not 
impose any disproportionate environmental health or safety risks on 
children.

Mitigation

    Implementation of the decision to dispose of Mare Island Naval 
Shipyard does not require Navy to perform any mitigation measures 
beyond those discussed here. Navy will take certain actions to 
implement existing agreements and regulations. These actions were 
treated in the FEIS/EIR as agreements or regulatory requirements rather 
than as mitigation.
    As required by Executive Order 11990, Protection of Wetlands, and 
Executive Order 11988, Floodplain Management, Navy will incorporate 
Notices in the conveyance documents describing wetland and floodplain 
uses that are restricted under Federal, State, and local regulations. 
Before property is conveyed, Navy will execute conservation easements 
or similar real estate instruments for the 81 acres of wetlands that 
provide suitable habitat for endangered species.
    Before conveying any Shipyard property, Navy will record 
representative historic buildings according to the standards of the 
Historic American Engineering Record or the Historic American Buildings 
Survey, as required by the Memorandum of Agreement dated April 1, 1997. 
Additionally, in accordance with Federal and State laws, Navy will 
include appropriate restrictive covenants in the property deeds for any 
parcels where hazardous substances remain. As discussed above, Navy 
will inform future property owners about the environmental condition of 
the property and may, where appropriate, include restrictions, 
notifications, or covenants in deeds to ensure the protection of human 
health and the environment in light of the intended use of the 
property.
    The FEIS/EIR identified and discussed those actions that would be 
necessary to mitigate impacts associated with the disposal and reuse of 
Mare Island. The acquiring entity, under the direction of Federal, 
State, and local agencies with regulatory authority over protected 
resources, will be responsible for implementing necessary mitigation 
measures.

Comments Received on the FEIS

    Navy received comments on the FEIS/EIR from the United States 
Environmental Protection Agency (EPA), the California Department of 
Transportation, the California State Lands Commission, the Greater 
Vallejo Recreation District, Arc Ecology (a private organization), and 
four individuals. All of the substantive comments concerned issues 
already discussed in the FEIS/EIR. Those comments that require 
clarification are addressed below.
    The California Department of Transportation commented that the 
FEIS/EIR did not propose adequate mitigation measures for the highway 
interchange on State Route 37 at Mare Island's North Gate. This agency 
suggested that it may be necessary to rebuild the interchange to 
accommodate the traffic that would be generated by the proposed reuse 
activities. As discussed in the FEIS/EIR, the acquiring entity will 
widen roads leading to and from this interchange to reduce potential 
traffic congestion near Mare Island's North Gate.
    The California Department of Transportation also commented that the 
FEIS/EIR did not analyze the environmental impact of the additional 
traffic on State Route 29 (Sonoma Boulevard) that would be generated by 
the southern crossing bridge. The City of Vallejo and the California 
Department of Transportation will determine the location of the bridge 
in a future planning study. Thereafter, construction of the southern 
crossing bridge will be subject to environmental impact analysis and 
permitting requirements. At that time, appropriate mitigation measures 
to address any additional traffic on State Route 29 can be identified.
    The California State Lands Commission, Arc Ecology, and two private 
citizens challenged Navy's determination of the amount of Mare Island 
property that is subject to reversion to the State of California. They 
also requested that Navy consider impacts associated with the different 
configuration of reversionary land at Mare Island advanced by the State 
Lands Commission. Navy's determination of the amount of property that 
is subject to reversion to the State of California is based upon the 
decision of the Supreme Court of the United States in United States v. 
O'Donnell, 303 U.S. 501 (1938). The impacts that could arise from other 
hypothetical configurations of reversionary lands need not be 
considered.
    A private citizen commented that in the FEIS/EIR, Navy should also 
have considered alternative uses for certain property that reverts to 
the State of California, i.e., the dredge material disposal ponds. 
Similarly, Arc Ecololy commented that, in addition to the Reuse Plan's 
proposals for reuse of the surplus Shipyard property, Navy should also 
have evaluated in the FEIS/EIR, future uses of the reversionary 
property and the property transferred to other Federal agencies.
    The reversionary property will revert to the State of California by 
operation of law. Since neither Navy nor the City of Vallejo can 
determine the future use of this reversionary property, it would not be 
appropriate to include a discussion of alternatives for the reuse of 
such property in the FEIS/EIR. Similarly, the property transferred to 
other Federal agencies to meet other Federal requirements is not 
surplus to the needs of the Federal Government. Therefore, it is not 
being considered for disposal in this FEIS/EIR. However, the FEIS/EIR 
does analyze the potential cumulative environmental impacts arising out 
of the proposed reuse of the Shipyard property, the reuse of base 
closure property by other Federal agencies, and the reuse of 
reversionary property by the State of California.
     The Greater Vallejo Recreation District commented that additional 
evaluation would be required before implementing particular 
recreational projects such as construction of the horse stables and 
rifle range in the Regional Park. The FEIS/EIR, however, recognizes 
that future projects and redevelopment proposals will be subject to 
CEQA and the City of Vallejo's zoning requirements.
    Arc Ecology also commented that Navy narrowly defined the disposal 
action to avoid responsibility for mitigating environmental impacts 
that may occur after conveyance of the Shipyard property. The FEIS/EIR 
fully analyzes the direct environmental impacts associated with the 
disposal of surplus Shipyard property at Mare Island and the indirect 
environmental impacts associated with reuse of that property. The FEIS/
EIR also clearly identifies mitigation related to the direct impacts of 
Navy's disposal and the indirect impacts of reuse. Navy cannot control 
reuse after conveyance of the property, and the acquiring entity will 
be responsible for implementing any mitigation required by reuse 
activities.
    A private citizen expressed concern that Navy had leased property 
at Mare Island to the City of Vallejo and transferred Shipyard property 
to other Federal agencies before completing the FEIS/EIR. Navy leased 
property at Mare Island Naval Shipyard to Vallejo only after conducting 
separate NEPA evaluations and preparing appropriate NEPA documentation 
for these interim leases. Additionally, the uses allowed under these 
leases are limited to those that are substantially the same as Navy's 
historical uses of the property. Moreover, these leases can be 
cancelled

[[Page 59774]]

upon 30 days notice if the uses are incompatible with this Record of 
Decision.
    Arc Ecology also commented that Navy's use of historical 
environmental conditions as the basis for its assessment of the effects 
of projected future impacts could minimize or understate future 
environmental impacts. In the FEIS/EIR, Navy employed the most recent 
conditions representative of historical full scale Navy operations at 
Mare Island as the baseline for evaluating impacts that would likely 
result from the proposed reuse. Navy believes that this is an 
appropriate standard to apply when assessing potential future 
conditions.
    In further comments on the FEIS/EIR, Arc Ecology suggested that 
Navy had concluded that as a result of compliance with existing laws, 
there would be no environmental impacts. On the contrary, Navy 
identified several potential environmental impacts that could occur as 
a result of implementing the Reuse Plan. Navy concluded, however, that 
these impacts would be reduced to insignificant levels through the 
required compliance with existing Federal, State, and local 
regulations. These include compliance with Federal and State air 
pollution emissions regulations and guidelines, Federal and State 
hazardous waste management and remediation regulations, the Vallego 
General Plan, and the Vallejo Municipal Code. Implementation of the 
Reuse Plan will not require mitigation or protection beyond the 
applicable requirements of these regulations and guidelines.
    Arc Ecology also commented that Navy had incorrectly concluded that 
the proposed redevelopment would be consistent with the goals, 
policies, and land use designations set forth in the Vallejo General 
Plan. This comment pointed to the need to revise the General Plan to 
take account of the proposed reuse. The General Plan Land Use Map will 
be amended to reflect the planned reuse, but the amendments to the 
General Plan will fall within and be consistent with the current 
policies and goals of the Vallejo General Plan.
    Arc Ecology and a private citizen commented that Navy had not 
adequately analyzed the potential impacts of future human or ecological 
exposure to currently unknown contamination at Mare Island. Navy is 
remediating contamination at Mare Island to levels that are protective 
of human health and the environment pursuant to the Comprehensive 
Environmental Response, Compensation, and Liability Act (CERCLA), 42 
U.S.C. 9601, et seq., and Executive Order 12580, Superfund 
Implementation, dated January 23, 1987. If any additional contamination 
is discovered and is attributable to Navy, it too would be addressed 
under CERCLA. It would be speculative now to identify mitigation 
measures that would address unknown contamination. Furthermore, it is 
unnecessary to an analysis of the proposed disposal and reuse of the 
Shipyard.
    A private citizen expressed concern that additional minority and 
low-income areas in Vallejo, beyond those already identified in the 
FEIS/EIR, would be disproportionately and adversely affected by reuse 
activities on and off Mare Island. As discussed in the FEIS/EIR, 
however, only the southern crossing bridge (depending upon the location 
selected) could result in disproportionately high and adverse impacts 
on a minority and low-income population. The other environmental 
impacts identified in the FEIS/EIR would occur only on Mare Island 
where no one presently resides or over a broad geographic area. 
Therefore, these impacts would not result in disproportionately high 
and adverse impacts on minority and low-income populations.
    Another private citizen expressed concern that future redevelopment 
projects could adversely affect wetlands because they may rely upon the 
general wetland map that was included in the FEIS/EIR. This citizen 
asked that Navy annotate the FEIS/EIR to state that its wetland map is 
not adequate for project planning. This citizen also suggested that the 
City adopt a mitigation measure requiring that project proponents 
submit a wetland delineation approved by the United States Army Corps 
of Engineers for any project that would affect lands which are not 
paved, built upon, or landscaped. Section 404 of the Clean Water Act, 
33 U.S.C. 1344, as implemented by its regulations, provides protection 
for the wetlands at Mare Island. In addition, as required by Executive 
Order 11990, Protection of Wetlands, Navy will place a Notice in the 
property conveyance document that describes those uses that are 
restricted under Federal, State, and local wetland regulations.
    Several comments expressed concern that Navy had underestimated the 
levels of police and fire protection services required to serve Mare 
Island and that the costs of providing these services would result in 
an overall reduction in public services in the City of Vallejo. Navy's 
analysis in the FEIS/EIR adopted projected staffing requirements that 
were provided by the City of Vallejo's Police and Fire Departments 
during the reuse planning process. The Vallejo General Plan provides 
that new development should bear the cost of extending or upgrading 
public services. It is the policy and practice of the City of Vallejo 
to require a new development to pay its fair share of the costs of 
public services generated by the development.
    Several private citizens and Arc Ecology, none of whom commented on 
the Draft EIS/EIR, suggested making several changes to, or providing 
additional detail concerning, aspects of the Reuse Plan and the 
alternatives. They also requested more detailed analysis of certain 
environmental impacts. Navy analyzed a reasonable range of alternatives 
in the FEIS/EIR at a reasonably specific level. Future reuse proposals 
will be subject to the environmental requirements of CEQA when 
particular redevelopment plans are submitted to the City of Vallejo for 
its consideration.

Regulations Governing the Disposal Decision

    Since the proposed action contemplates a disposal action under the 
Defense Base Closure and Realignment Act of 1990 (DBCRA), Public Law 
101-510, 10 U.S.C. Sec. 2687 note, Navy's decision was based upon the 
environmental analysis in the FEIS/EIR and application of the standards 
set forth in DBCRA, the Federal Property Management Regulations (FPMR), 
41 CFR Part 101-47, and the Department of Defense Rule on Revitalizing 
Base Closure Communities and Community Assistance (DoD Rule), 32 CFR 
Parts 174 and 175.
    Section 101-47.303-1 of the FPMR requires that the disposal of 
Federal property benefit the Federal government and constitute the 
``highest and best use'' of the property. Section 101-47.4909 of the 
FPMR defines the ``highest and best use'' as that use to which a 
property can be put that produces the highest monetary return from the 
property, promotes its maximum value, or serves a public or 
institutional purpose. The ``highest and best use'' determination must 
be based upon the property's economic potential, qualitative values 
inherent in the property, and utilization factors affecting land use 
such as zoning, physical characteristics, and other private and public 
uses in the vicinity, neighboring improvement, utility services, 
access, roads, location, and environmental and historical 
considerations.
    After Federal property has been conveyed to non-Federal entities, 
the property is subject to local land use regulations, including zoning 
and subdivision regulations and building

[[Page 59775]]

codes. Unless expressly authorized by statute, the disposing Federal 
agency cannot restrict the future use of surplus Government property. 
As a result, the local community exercises substantial control over 
future use of the property. For this reason, local land use plans and 
zoning affect determination of the highest and best use of surplus 
Government property.
    The DBCRA directed the Administrator of the General Services 
Administration (GSA) to delegate to the Secretary of defense authority 
to transfer and dispose of base closure property. Section 2905(b) of 
DBCRA directs the Secretary of Defense to exercise this authority in 
accordance with GSA's property disposal regulations, set forth in Part 
101-47 of the FPMR. By letter dated December 20, 1991, the Secretary of 
Defense delegated the authority to transfer and dispose of base closure 
property closed under DBCRA to the Secretaries of the Military 
Departments. Under this delegation of authority, the Secretary of the 
Navy must follow FPMR procedures for screening and disposing of real 
property when implementing base closures. Only where Congress has 
expressly provided additional authority for disposing of base closure 
property, e.g., the economic development conveyance authority 
established in 1993 by Section 2905(b)(4) of DBCRA, may Navy apply 
disposal procedures other than those in the FPMR.
    In Section 2901 of the National Defense Authorization Act for 
Fiscal Year 1994, Public Law 103-160, Congress recognized the economic 
hardship occasioned by base closures, the Federal interest in 
facilitating economic recovery of base closure communities, and the 
need to identify and implement reuse and redevelopment of property at 
closing installations. In Section 2903(c) of Public law 103-160, 
Congress directed the Military Departments to consider each base 
closure community's economic needs and priorities in the property 
disposal process. Under Section 2905(b)(2)(E) of DBCRA, Navy must 
consult with local communities before it disposes of base closure 
property and must consider local plans developed for reuse and 
redevelopment of the surplus Federal property.
    The Department of Defense's goal, as set forth in Section 174.4 of 
the DoD Rule, is to help base closure communities achieve rapid 
economic recovery through expeditious reuse and redevelopment of the 
assets at closing bases, taking into consideration local market 
conditions and locally developed reuse plans. Thus, the Department has 
adopted a consultative approach with each community to ensure that 
property disposal decisions consider the Local Redevelopment 
Authority's reuse plan and encourage job creation. As a part of this 
cooperative approach, the base closure community's interests, e.g., 
reflected in its zoning for the area, play a significant role in 
determining the range of alternatives considered in the environmental 
analysis for property disposal. Furthermore, Section 175.7(d)(3) of the 
DoD Rule provides that the Local Redevelopment Authority's plan 
generally will be used as the basis for the proposed disposal action.
    The Federal Property and Administrative Services Act of 1949, 40 
U.S.C. Sec. 484, as implemented by the FPMR, identifies several 
mechanisms for disposing of surplus base closure property: by public 
benefit conveyance (FPMR Sec. 101-47.303-2); by negotiated sale (FPMR 
Sec. 101-47.304-9); and by competitive sale (FPMR Sec. 101-47.304-7). 
Additionally, in, Section 2905(b)(4), the DBCRA established economic 
development conveyances as a means of disposing of surplus base closure 
property. The selection of any particular method of conveyance merely 
implements the Federal agency's decision to dispose of the property. 
Decisions concerning whether to undertake a public benefit conveyance 
or an economic development conveyance, or to sell property by 
negotiation or by competitive bid are committed by law to agency 
discretion. Selecting a method of disposal implicates a broad range of 
factors and rests solely within the Secretary of the Navy's discretion.

Conclusion

    The City of Vallejo's proposed reuse of Mare Island Naval Shipyard, 
reflected in the Reuse Plan, is consistent with the requirements of the 
FPMR and Section 174.4 of the DoD Rule. The LRA has determined in its 
Reuse Plan that the property should be used for several purposes, 
including industrial, commercial, residential, educational, and 
recreational uses. The property's location, physical characteristics, 
and existing infrastructure as well as the current uses of adjacent 
property make it appropriate for the proposed uses.
    The Preferred Alternative responds to local economic conditions, 
promotes rapid economic recovery from the impact of the Shipyard's 
closure, and is consistent with President Clinton's Five-Part Plan for 
Revitalizing Base Closure Communities, which emphasizes local economic 
redevelopment and creation of new jobs as the means to revitalize these 
communities. 32 CFR Parts 174 and 175, 59 Fed. Reg. 16123 (1994). 
Although the ``No action'' alternative has less potential for causing 
adverse environmental impacts, this alternative would not take 
advantage of the property's location, physical characteristics, and 
infrastructure or the current uses of adjacent property. Additionally, 
it would not foster local economic redevelopment of the Mare Island 
Navy Shipyard property.
    The acquiring entity, under the direction of Federal, State, and 
local agencies with regulatory authority over protected resources, will 
be responsible for adopting practicable means to avoid or minimize 
environmental harm that may result from implementing the Reuse Plan.
    Accordingly, Navy will dispose of Mare Island Naval Shipyard in a 
manner that is consistent with the City of Vallejo's Reuse Plan for the 
property.

    Dated: October 23, 1998.
William J. Cassidy, Jr.,
Deputy Assistant Secretary of the Navy (Conversion And Redevelopment).
[FR Doc. 98-29560 Filed 11-4-98; 8:45 am]
BILLING CODE 3810-FF-M