Action Delayed as Questions Cloud Emissions Control System Grant

“This is a really good project,” Port of LA Director of Environmental Management Chris Cannon told POLA’s board at its Aug. 5 meeting. He was talking about a proposed at-berth emissions capture-and-control system for tanker vessels, and requesting $333,334 as the port’s contribution to secure a $9.5 million grant from the California Air Resources Board. 

But two long-time community environmental activists raised strong objections, and the board postponed action, seeking more information before reaching a decision.

At issue is both the capability of the company receiving the grant, STAX Engineering, which has never built anything before, as well as the selection process involved in choosing it over a competitor, AEG, whose AMECS system has been in use for years, and for whom members of the STAX team had previously worked.

Jesse Marquez, executive director of the Coalition For A Safe Environment, gave a glimpse into the South Coast Air Quality Management District’s sudden, unexplained, last-minute shift from initiating the grant process with AEG, to selecting STAX and then scrambling to make it look more qualified. He listed a number of additional problems as well. “Part of the technology they are using was stolen from their prior employer — three of the STAX engineering owners or principals are ex-employees of AEG and ACTI [AEG’s predecessor], so there’s a legal conflict right there,” Marquez said.

“What is the rationale of giving $10 million of public funds to a company that has never made anything?” asked Janet Gunter. “Its competitor, AMECS, offers a proven trusted system for less than half, and is currently being assisted and supported through reorganization by WBCT [actually LBCT], the largest terminal operator in the U.S.” She also raised numerous conflict of interest questions, and stressed that the Port of Long Beach had tabled consideration of its financial support.

“The two speakers make some excellent points,” Commissioner Diane Middleton said. “I’m very concerned whether or not a contract is going to a company that may not be able to execute it, and I don’t want to be cavalier and say, ‘Not our problem! We didn’t hire them.’”

“We don’t know much about STAX,” Commissioner Ed Renwick said. “There’s just a lot of unknowns. The last thing I want is to approve something that we haven’t vetted.”

In the end, the board voted unanimously to table the matter, pending further information regarding the questions raised.

The Port of Long Beach is scheduled to consider the matter on Aug. 23.