Dumping refuse in the ocean.
An out-of-focus Lila seen with the Poo in the background.
The Stinky-Poo is the name of the ship captained by Clarence which the other Smoggies (his wife Emma and first mate Polluto) dwell in. It is not a very clean ship.
The sun never shines at the Stinky-Poo because its rays are blocked by the smoke produced by the ship.
The Smoggies may have difficulty taking their ship away because Polluto drinks a lot of its oil supply.