b"2021-22 Mele Kalikimaka & Hau'oh Makakiki Hou! HAWAII Petroleum Marketers Association State ReportHIa top-of-mind issue for the AlohaIts important that we proceed care- HPMA2022 Outlook: Cautiously OptimisticThe pandemic remains fully. Hawaii is generally considered State, nearly two years since it started. This past summer, thereto be the most expensive place were promising signs Hawaii was on its way to economic re- to live in the nation. Further, ourcovery. As with other states across the nation, Hawaii residentsstate already has fuel-based taxes, were offered numerous incentives to be fully vaccinated.including those for environmentalHawaii Aloharesponse, energy, and food security, With rising vaccine levels, the government lifted restrictions,colloquially known as the barrel leading to a tourism boom starting in the spring and runningtax. Natural gas is not availableEric Wright through the summer months. Domestic tourism exceeded pre- in Hawaii, so we depend on oil forHPMA PresidentCOVID-19 levels. This was due primarily to pent-up demandtransportation and power generation. and thanks to the states Safe Travels program that incor- Onslaught of Other Billsporated best practices in screening and testing protocols forThere are numerous other billson the horizon to tax travelers to our islands.However, just as we were hitting our stride and building posi- or assess fees for air and ground transportation fuels that can tive momentum, we encountered a setback. There was a risingnegatively impact the resurgence of Hawaiis visitor industry. surge of COVID-19 cases in the islands, primarily from theProposals include bills that establish a pollution assessment Delta variant among those who had not yet been vaccinated.fee on rental cars, a rental motor vehicle emission surcharge Government restrictions were re-instituted and travel to andand a number of carbon offset billseven though rental car from the state was discouraged. The visitor industry suf- fleets were drastically slashed during the pandemic. Still, we fered millions of dollars in cancellations and this negativelyall know that we need to welcome tourists who use rental cars.reverberated throughout our entire island economy, which isMinimum Wage Increaseheavily dependent upon the ongoing influx of visitors. Hawaiis working familiesmay be hurting and would Fortunately, the COVID-19 case numbers are now undergladly welcome relief with a wage increase. However, such a control again, and restrictions on indoor and outdoor gather- move would affect the bottom line of all Hawaiis businesses, ings have begun to loosen. That means we can expect moreespecially for those of us that have retail operations. We visitors, and more Hawaii residents will be driving again. expect more robust conversations about the states minimum We hope this time we remain on a steady trajectory, but thewage increase in the next legislative session.pandemic has shown us the importance of being nimble,Relief in Sight?adaptable and to always expect the unexpected. Those ofus in the petroleum marketing sector are cautiously optimisticWe see our roleas educating policy makers on the impor-about the outlook for 2022. tance of liquid fuels in Hawaiis economy. The ability for us to Tax Policy efficiently and economically serve our customers is critical to the States economy and well-being. In Hawaii,we often encounter legislation with conflictingNext year will be a major election year for new state govern-values. Just when the local economy needs a badly neededment leaders, including the governor. Every 10 years, follow-shot in the arm, our legislature considered imposing additionaling the U.S. Census results, Hawaii undergoes reapportion-taxes on Hawaii businesses. Fortunately, most of these itemsment to address the states growing or shifting population and did not survive a Gubernatorial veto.to ensure fair representation. This means all of the legislative Of ce: Some legislators are considering a tax on all carbon dioxideseats will be up for vote. There will be no incumbents and we 4393 South Riverboat Rd.emitting fuels, such as oil, gas, and coal to reduce greenhousewill be starting the 2023 legislative session with some new Suite 380Salt Lake City, Utah 84123 Of ce: gas emissions. This carbon tax bill was introduced earlier thisfaces. As an industry, it will be an opportunity to build new 4393 South Riverboat Rd.year but was not heard. We anticipate it will resurface in therelationships, while strengthening our ties with allies who un-Mail: Suite 380PO Box 571500 Salt Lake City, Utah 84123 2022 legislative session.derstand the importance of approaching Hawaiis energy trans-Gene D. Inglesby Murray, Utah 84157-1500 formation in a thoughtful, deliberate and strategic manner. Chief Executive Of cer Mail: STel: (801) 263-WPMA PO Box 571500genei@wpma.com (801) 263-9762 Jan Roothoff Murray, Utah 84157-1500www.wpma.com Administration/I.T. DirectorCell: (801) 209-2809 janr@wpma.com Tel: (801) 263-WPMAFax: (801) 262-9413 www.wpma.com (9762) ext 105www.wpmaexpo.com Direct line: (801) 327-9344Fax: (801) 262-9413WPMA News / Winter 20219Of ce:4393 South Riverboat Rd. Suite 380Salt Lake City, Utah 84123 Of ce:4393 South Riverboat Rd. Mail: Suite 380Gene D. Inglesby PO Box 571500 Salt Lake City, Utah 84123Murray, Utah 84157-1500Chief Executive Of cer Tel: (801) 263-WPMA Mail:PO Box 571500(801) 263-9762 Christine Nunley Murray, Utah 84157-1500genei@wpma.com Publications Directorwww.wpma.com Cell: (801) 209-2809 Tel: (801) 263-WPMAFax: (801) 262-9413 chrisn@wpma.com (9762) ext 106www.wpma.comwww.wpmaexpo.com Direct line: (801) 327-9355Fax: (801) 262-9413Of ce:4393 South Riverboat Rd. Suite 380Salt Lake City, Utah 84123 Of ce:4393 South Riverboat Rd. Kim White Mail: Suite 380PO Box 571500 Salt Lake City, Utah 84123Trade Show Coordinator Murray, Utah 84157-1500kimw@wpma.com Tel: (801) 263-WPMA Jamie Wood Mail:www.wpma.com PO Box 571500www.wpmaexpo.com (9762)Member Services Director Murray, Utah 84157-1500jamiew@wpma.com Tel: (801) 263-WPMAFax: (801) 262-9413 www.wpma.com (9762) ext 102www.wpmaexpo.comDirect line: (801) 327-9359Fax: (801) 262-9413Of ce:4393 South Riverboat Rd. Suite 380Salt Lake City, Utah 84123 Of ce:4393 South Riverboat Rd. Kim White Mail: Suite 380PO Box 571500 Salt Lake City, Utah 84123Trade Show Coordinator Murray, Utah 84157-1500kimw@wpma.com Kathy Michaelis Mail:www.wpma.com Tel: (801) 263-WPMA Accounts Payable andPO Box 571500www.wpmaexpo.com (9762)Scholarship Coordinator Murray, Utah 84157-1500kathym@wpma.com Tel: (801) 263-WPMAFax: (801) 262-9413 www.wpma.com (9762) ext 103www.wpmaexpo.com Direct line: (801) 327-9350WPMA BusCrd15-1120ck.indd 1 Fax: (801) 262-941311/20/15 4:30 PM"