Yes, that is the lift pump... Looks like you have a leak....
When you replace it, you should replace the olives in the hard line on the left (in this picture) on this end, and at the fuel filter housing. I would also get a GOOD chunk of 3/8" DIESEL RATED hose (from NAPA or a big truck shop, not the cheap s**t from AutoZone or Advance...etc, the cheep stuff doesn't like diesel, we had a chunk get soft in a couple months) and replace the section on the right (in this picture) from the lift pump to the frame rail.... this is a common leak point...... since you are going to get a diesel bath, might as well do everything at once....