Rep. Issa questions LA port’s stimulus spend

   The campaign by Republicans in the U.S. House of Representatives to discredit the Obama administration’s choices for distributing stimulus funds from the American Recovery and Reinvestment Act of 2009 has now set its sights on the Port of Los Angeles.
   Rep. Darrell Issa of California, chairman of the House Oversight and Government Reform Committee, on Monday sent a letter to Port Director Geraldine Knatz asking for details about the port’s decision to use $489,000 in federal stimulus money to install a hybrid-electric propulsion system on a port-owned boat used for publicity and educational tours.
   The City of Los Angeles received a $37 million Energy Efficiency and Conservation Block Grant from the stimulus bill and channeled about $1.5 million to the Port of Los Angeles for its Port Technology Advancement Program, which is used to support development and demonstration of new technologies in the port environment. Among the high-tech projects it has funded are a hydrogen-fuel cell truck, an electric heavy-duty truck, and hybrid-diesel cargo handling equipment.
   The port used $489,000 of the federal money to retrofit the Angelina II, a 73-foot yacht that provides hundreds of annual tours for customers, constituents, foreign dignitaries, media, elected officials and government personnel to highlight the value of the port. The port purchased the 42-year-old boat in 1988. Last year the vessel, which can hold 40 people, hosted more than 4,000 visitors.
   “At a time when city, state and federal budgets are at the breaking point, taxpayers should be able to rely on their elected officials making sound decisions about spending taxpayer money,” Issa said in a press release. “The Port of Los Angeles owes the public greater transparency about this project and a full accounting of the cost-benefit analysis used to justify spending on this type of project.”  
   The review is an extension of the highly publicized Solyndra case and investigation into Department of Energy “green” energy programs. Solyndra, a start-up California firm that made solar panels, received $535 million in loan guarantees from an Energy Department loan program designed to spur development of clean energy technologies. The Federal Financing Bank, a part of the Treasury Department, eventually loaned Solyndra the money. The company went bankrupt last September and shut down operations.
   Issa launched an investigation last year into the Solyndra loan guarantee, which Republicans suggest was not thoroughly scrutinized on the merits because of White House influence to support its agenda for clean energy investment and the possibility that campaign contributions may have helped Solyndra secure the guarantee. Energy Secretary Stephen Chu has also been harshly criticized by Republicans for restructuring the loan last February when it became clear that Solyndra was in financial difficulty.
   It is unclear how much money the federal government will get back after the company’s remaining assets are divided among other creditors in the bankruptcy process.
   Republicans have characterized the stimulus bill as wasteful spending that has contributed to huge federal budget deficits over $1 trillion.  
   Issa asked the Port of Los Angeles to explain what information to justify the retrofit were requested by the Energy Department, the need for upgrading the diesel engines and the status of the retrofit, how priority given to the Angelina II compared to other projects, how the rest of the grant money was used, and to what extent the port had discretion in allocating the federal funds it received.
   Many of the answers are available on a Feb. 2 press release posted on the Port of Los Angeles’ Website.
   The port said it has received final approval from the Coast Guard to install the hybrid propulsion system on the tour boat and expects to complete the work this spring. The new power system will cut emissions and fuel use by 95 percent.  
   The Angelina II is powered by two 350-horsepower diesel engines that as of September 2011 no longer meet California emissions requirements. 
   The port is spending another $200,000 of its own funds to replace the diesel engines, which are required by the Coast Guard for backup power.
   “The Angelina II is an invaluable business and public education tool, and now we can use it to demonstrate yet another emerging technology that can reduce emissions in ports and harbors around the world,” Knatz said in the news release. “The port has provided more than $100 million to help fund these kinds of technologies and reduce overall emissions in the L.A. harbor.”  
   The Port of Los Angeles five years ago implemented a comprehensive clean air strategy that has significantly reduced emissions of soot, nitrogen oxides, sulfur oxide and greenhouse gases. 
   The port says the vessel is an important tool for educating government officials about the role of the port and the need to fund projects such as dredging, security, highway and rail infrastructure, and terminal expansions.
   The mayor of Los Angeles is Antonio Villaraigosa, a Democrat who is outspoken on many issues. 
   Issa requested a response from the Port of Los Angeles by Feb. 20. — Eric Kulisch