AGP Executive Report

Hurricane Lala Response: Hurricane Lala skirted Hawaii island but still battered it with heavy rain, damaging winds and widespread flooding, leaving at least 63,270 Hawaiian Electric customers without power and forcing road closures and delayed restoration work. Oahu Disruptions: High winds also triggered a Waikiki hazard, with falling debris from the Sheraton Princess Kaiulani leading to a Kalakaua Avenue closure near major shopping areas. Power Reliability Watch: In Hawaii Kai, residents continue reporting flickering/strobing lights months after the issue began; Hawaiian Electric says customers should log each occurrence, while the PUC says it has requested details from HECO and allows informal complaints. Local Governance & Spending: Letters urge leaders to rein in the Kakaako development’s energy failures and question whether federal investigators should step in. Tourism & Community Impacts: Multiple opinion pieces push for managing mass tourism impacts rather than chasing visitor volume, warning that time is running out for residents and infrastructure. Local Economic Innovation: UH Mānoa researchers are testing whether Hawaii-grown eucalyptus can become construction-grade lumber, aiming to cut reliance on imported wood. Elections & Voting Reform: An editorial argues Hawaii should consider ranked-choice voting and purge unlawful influence as election participation and trust remain low.

Hurricane Response: Hurricane Lala is battering Hawaiʻi Island with heavy rain, high winds and flooding as Hawaiian Electric crews assess damage and restore power; as of late morning Saturday, about 18,700 customers were without power on the Big Island, with outages tied to downed lines from trees and debris, while Maui County also reported thousands affected and HECO warned restoration could take overnight as conditions worsen. Storm Preparedness & Impacts: The National Hurricane Center upgraded Lala to Category 1 as it nears the Big Island, prompting road closures, airport shutdowns/securements, shelter use and “essential needs only” water guidance. Air Travel Disruption: Southwest said it’s dealing with hundreds of flight disruptions across Hawaiʻi and is offering rebooking or refunds for travelers at multiple airports through the weekend. Insurance & Consumer Guidance: Zephyr Insurance began hurricane coverage outreach for Hawaiʻi Island policyholders, urging residents to review what their policies cover—especially separating wind damage from flooding. Local Business Readiness: Big Island residents and vendors are boarding up, stocking up and closing early, including Hilo Farmers Market vendors preparing for the storm’s second hit. Cyber/Market Oversight: A House inquiry is demanding answers from major airlines, including Hawaiian, on whether AI and consumer data influence the fares people see.

Hawaiian Homesteads Land Transfer: The state Board of Land and Natural Resources approved transferring 334 acres to the Department of Hawaiian Home Lands, bringing DHHL closer to fulfilling a decades-old mandate and expanding homestead opportunities on Hawaiʻi Island. East Maui Water Fight: BLNR rejected a long-term East Maui water path for Mahi Pono and moved toward a contested case process tied to stream diversion permits, siding with county and cultural water advocates. Tropical Storm Lala Readiness: As Lala strengthens toward a rare hurricane threat for the Big Island, Hawaiʻi agencies and utilities are ramping up—Hawaiian Electric says more than 500 workers are staged and warns outages could last days, with wildfire-related Public Safety Power Shutoffs possible. Maui Flood Concerns: Maui County leaders urged residents to stock supplies and highlighted flood-prone South Kihei Road worries after recent repairs. Public Health Watch: DOH confirmed a fifth cyclosporiasis case in Hawaiʻi, with the public risk described as low while investigations continue. Business/Community Mobility: Lānaʻi Air launched a new Molokaʻi–Honolulu route, adding options after more than five years with only one carrier.

Hawai‘i Storm Readiness: Tropical Storm Lala is tightening its grip on the islands, with a Hurricane Warning for the Big Island and Tropical Storm Watches/Warnings elsewhere as officials activate emergency hubs and urge residents and visitors to finish preparations. Tourism & Visitor Guidance: The Hawai‘i Tourism Authority is pushing a visitor-focused news and alert guide so hotels and tour operators can keep guests informed and adjust plans. Local Business Continuity: Honolulu is standing up its Emergency Operations Center as O‘ahu enters a Tropical Storm Watch, highlighting how quickly operations can shift for critical infrastructure and public safety. Inter-Island Air Capacity: Mokulele Airlines is adding three Cessna 208 Caravans and expanding its Honolulu terminal upgrades, aiming to boost reliability and service. Accounting & Advisory Expansion: Eide Bailly is acquiring MUN, adding a Lihue, Hawai‘i office and expanding its footprint across California and Nevada. Business Risk & Compliance: A new settlement over lender-placed insurance charges underscores ongoing pressure on mortgage servicers nationwide. Public Health Watch: A cyclospora outbreak tied to a lettuce recall is spreading in the U.S., a reminder for food safety and supply-chain scrutiny. Aviation Labor Pay: New contracts and wage increases at major U.S. airlines are widening pay tiers for flight attendants, shaping hiring and labor costs. Real Estate Dealmaking: Concierge Auctions has opened bidding for a Kaua‘i North Shore retreat at $8.25 million as it targets high-end buyers.

Storm Readiness: Tropical Storm Lala is strengthening toward a hurricane, with a hurricane warning issued for Hawaii Island and a tropical storm watch for parts of Maui County, bringing heavy rain, damaging winds, flooding risk and dangerous surf through the weekend. Local Emergency Management: Hawaii County is seeking a new Civil Defense administrator after Talmadge Magno’s retirement, while acting leadership coordinates daily storm response. Utilities & Business Continuity: Hawaiian Electric says it’s better prepared after Maui wildfire lessons, citing pole replacements and line hardening, and urges customers to review emergency plans. State Land & Water: DLNR is preparing for Lala-related stream and dam safety checks, while Maui’s Mahi Pono 30-year water lease is back on the table for a state vote—sparking controversy over who controls East Maui irrigation. Aviation & Travel: Mokulele expands its fleet to 16 aircraft and highlights Terminal 3 upgrades at Daniel K. Inouye International Airport. Public Health & Consumer Risk: DOH and DAB urge vigilance as migratory birds return, and the DCCA Insurance Division reminds residents to document property and understand flood coverage before filing claims. Regulatory Watch: Hawaii’s new disposable vape ban and limits on rechargeable devices take aim at youth vaping starting Jan. 1, 2027.

OHA Leadership Search: The Office of Hawaiian Affairs has launched a nationwide search for its next Administrator/Chief Executive Officer, with applications prioritized by Sept. 4 and led by Kumabe HR. Military & Land Reuse: Gov. Josh Green says the U.S. Navy is starting the process to return nearly 44 acres on Oʻahu (Kalaeloa) and Molokaʻi (Hoʻolehua) for state stewardship, including existing film/TV production facilities. Interisland Air Service: Lāna‘i Air launched a new daily Molokaʻi–Oʻahu route, adding four flights a day between MKK and HNL with 19-seat aircraft. Public Health Alert: DOH and DAB are urging vigilance as migratory birds return, reminding backyard flock owners to take steps to reduce avian influenza risk. Local Biosecurity Incident: A live opossum was captured at a freight warehouse near Hilo Harbor and euthanized for rabies testing, with no other animals found nearby. Energy Cost Debate: A new report argues “blue state” renewable mandates can raise electricity prices, citing higher rates in places like California and New York. Airline Changes: Alaska Airlines will replace Hawaiian’s 717 fleet with Hawaiian-branded 737-800s starting in 2028, reshaping Neighbor Island capacity. Business Growth at Home: DBEDT will return as official sponsor of the Made in Hawaiʻi Festival, featuring a DBEDT Hawaiʻi Made Pavilion with nearly 30 local businesses.

Retail Expansion: North West Company says its new Cost.U.Less flagship in Hagåtña, Guam—over 50,000 sq. ft. and the island’s largest—opens Aug. 28, with the Tamuning store closing Aug. 27 as staff transition. Local Government & Economy: Honolulu City Council advanced a vehicle weight tax cut (Bill 47), lowering rates for passenger vehicles and certain trucks starting July 1, 2027. City Leadership: Krishna Jayaram was confirmed as Honolulu Managing Director, effective immediately, tasked with day-to-day operations and priorities including housing and economic development. Environment & Fisheries: Honolulu urged DLNR to ban aquarium fishing and the Legislature to ban it statewide, citing a long-running legal fight over permits. Health & Consumer Costs: New data shows U.S. inflation cooled to 3.4% in July, but Hawaii shoppers still feel higher food prices. Regulation & Legal Fight: Hawaiʻi’s crackdown on hemp-derived THC products is hitting Oʻahu dispensaries, with one owner seeking a federal court halt. Volcano & Weather Risk: Kīlauea tephra fallout guidance was issued for areas downwind, while Potential Tropical Cyclone One-C and possible Tropical Storm Lala raise flood, wind, and surf concerns.

Air Travel & Rewards: American Airlines is changing complimentary upgrades for AAdvantage elites on many Hawaii and longest domestic routes starting Aug. 25, shifting standard Main Cabin upgrades to Premium Economy first—sparking backlash from frequent flyers. Retail & Tourism: Ala Moana Center is gearing up for new openings, including POP MART’s first Hawaii store (August) plus Kids City Adventure (October) and other new tenants. Local Consumer Protection: Hawaii’s new law banning cash deposits at cryptocurrency ATMs/kiosks takes effect Oct. 1, aiming to curb kiosk fraud that’s driven millions in losses. Business & Community: UH Athletics is set to announce a major giving initiative to strengthen support for student-athletes. Food Safety Support: Hawaiʻi Commercial Kitchens is offering a free HACCP workshop (with Zoom option) to help food businesses prepare for inspections. Environment & Infrastructure: Honolulu marked completion of Sand Island Wastewater Treatment Plant Secondary Treatment Phase 1, boosting ocean protection capacity. Procurement & Small Business: NAVFAC Hawaii held its 4th annual Government Procurement Industry Forum to connect contractors—especially small businesses—with Navy contracting opportunities. Weather Watch: Forecasters are tracking developing tropical systems in the Atlantic and Central Pacific, with Hawaii urged to prepare for possible impacts.

Wastewater & Ocean Health: Honolulu marked completion of the Sand Island Wastewater Treatment Plant Secondary Treatment Phase One, upgrading filtration and UV disinfection for nearly 56 million gallons of daily flow. Tourism & Native Stewardship: Hawaiian Council bought Sea Life Park Hawai‘i, keeping operations running while shifting stewardship to Native Hawaiian leadership and planning new cultural programming. Maui Recovery Watch: UHERO reports housing gains three years after the wildfires—about two-thirds of affected households now in permanent homes—while employment and incomes lag and displacement still spreads beyond the burn area. Local Courts & Governance: Five ICA judges recused themselves from Tommy Waters’ appeal over his city council ineligibility, leaving the case to be reassigned. Public Safety & Justice: Two Kihei brothers pleaded not guilty in a labor trafficking case involving a Guatemalan man; prosecutors allege extortion and document-related offenses. Weather & Risk: Forecasters track a developing tropical system that could become Tropical Storm Lala and bring wind, rain and surf impacts to Hawaii this weekend. Business & Military Buyers: About 70 Hawaii vendors pitched products to military commissary and exchange buyers at the Akaka ALA Hawaii Food Show. Cybersecurity: A practical guide explains what happens after ransomware hits and why clean backups determine recovery.

Local Governance: Honolulu’s Office of Economic Revitalization is shutting down this Friday after City Council cuts, with Mayor Rick Blangiardi calling it a “slap in the face” and warning thousands of residents will lose key support. Affordable Housing & Finance: Hawaiʻi Community Lending CEO Jeff Gilbreath will step down; a search is underway for the next leader as the nonprofit positions itself to scale its $23 million loan fund. Public Health: The Hawaiʻi Department of Health launched Project Hoʻoulu, a face-to-face mental health outreach effort for children, youth and adults affected by Kona Low flooding across Maui, Molokaʻi, Oʻahu and Lānaʻi. Legal & Labor: Maui police arrested and the state indicted two brothers accused of labor trafficking and extortion tied to a man from Guatemala. Workforce Development: Hawaii Medical College and ALU LIKE are expanding access to advanced nurse aide training with a sponsored cohort aimed at filling high-demand healthcare roles. Consumer Safety: BBB Scam Tracker data shows Kapolei tied for second-highest scam reports among Hawaii cities in July, while national scam losses continue to climb. Business & Tourism: Westgate Resorts opened sales for Westgate Bimini Bay, its first Caribbean destination, adding more villa-style lodging as Bahamas visitor numbers hit record levels.

Renewables & Grid Planning: The Public Utilities Commission approved another Hawaiian Electric competitive-bid round, seeking proposals for Oʻahu and Hawaiʻi Island projects totaling about 1,650 gigawatt-hours of variable renewables plus grid-forming resources and firm power, with selections expected in September 2027 and generation targeted for 2031–2034. Utility Accountability: A column and follow-up reporting point to HEI’s “profit” jump as largely driven by an accounting shift tied to the Maui fire settlement, while the company still faces major liabilities. Housing & Homeownership: A policy push highlights Hawaii’s revamped Individual Housing Account program aimed at helping young residents buy homes, after years of low homeownership among under-35 adults. Consumer & Service Quality: A Hawaiian Telcom customer letter says long-running voicemail problems remain unresolved despite repeated contacts, echoing earlier complaints. Public Safety & Tech: Civil rights groups protested Palantir’s government surveillance software in Honolulu, raising concerns about warrantless data access and mass monitoring. Community Support: DOH launched Project Hoʻoulu, a face-to-face resiliency outreach for children, youth and adults affected by Kona Low flooding across multiple islands. Air Travel Reliability: A new national ranking based on millions of flights finds JetBlue worst for delays/cancellations and Delta best, with Hawaiian noted among carriers affected by the study.

Defense & Tech: Firestorm Labs says it built 12 3D-printed drones aboard the USS Essex at sea, producing 1,000+ components during RIMPAC 2026 counter-drone drills—an early look at manufacturing on Navy ships. Energy & Utilities: The PUC approved Hawaiian Electric’s Integrated Grid Planning RFP for Oʻahu and Hawaiʻi Island, targeting large-scale renewable energy and storage to cut oil use and stabilize bills, with projects slated for 2031-2034. Local Governance & Housing: Hawaii’s Democratic congressional primary delivered a win for Rep. Ed Case over Sen. Jarrett Keohokalole, underscoring how Israel policy debates are reshaping party politics that can spill into economic priorities. Business & Regulation: AG Aaron Ford led a bipartisan push against CFTC prediction-market rules, arguing the agency can’t override states’ sports-betting authority. Economy & Travel: American Airlines plans new nonstop international routes and is also tightening upgrade policies on some flights, a reminder that airline pricing power keeps shifting. Community & Schools: Police and volunteers repainted Waikōloa school railings, a small but visible boost to campus safety and local partnerships.

Maui Wildfire Recovery & Housing Pressure: A new wildfire surge in the Pacific Northwest is already raising alarms about rebuilding capacity and housing supply, with one example warning that hundreds of destroyed homes can quickly overwhelm local builders and push up market strain. Immigration Policy & Tech Workforce: The Trump administration is considering scrapping the 60-day grace period for laid-off H-1B (and other) visa holders, a move critics say could leave thousands with little or no time to find new work or adjust status. Meta Under Fresh Scrutiny: Meta is set for another major U.S. trial over allegations that Instagram and Facebook were made addictive for children, with states seeking sweeping restrictions and massive penalties. Hawaii Politics & Party Momentum: Hawaii Democrats held a post-primary unity gathering highlighting continued Democratic dominance and the push toward November contests. Maui Election Fallout: On Maui, mayoral candidate Yuki Lei Sugimura’s primary win talk is intertwined with concerns about public corruption charges and the long shadow of the 2023 wildfires. Tourism, Travel & Mobility: Lotte Rent-a-Car is expanding a Hertz partnership to book rentals across 63 cities in eight countries, including Hawaii, aimed at Korean travelers. Local Business Culture: The Maui Arts & Cultural Center opens a free exhibition tracing the aloha shirt’s history through designer John “Keoni” Meigs’ work. Weather Watch: Hawaii forecasters flag trade-wind breeziness, minor coastal flooding risk from higher tides, and a possible tropical system forming late in the week.

Hawaii Politics: Incumbent U.S. Rep. Ed Case fended off progressive challenger Jarrett Keohokalole in Hawaii’s 1st District Democratic primary, winning about 57% to 34%, setting up a November matchup against Republican Adriel Lam. In the 2nd District, Rep. Jill Tokuda cruised to renomination with about 84% of the vote, while Gov. Josh Green also advanced in the gubernatorial primary. Nonprofit Finance: New IRS Form 990 rankings spotlight which Hawaii-area nonprofits pulled in the most revenue in 2024, including Hui Hoolana (Kualapuu), Lanai Cultural & Heritage Center (Lanai City), Halau Ke’Alaokamaile (Haliimaile), and Kihei Canoe Club (Kihei). Local Business & Travel: A Hawaii food entrepreneur is bringing Singapore street-food favorites to the islands through Shioketh, while airline lounge access is getting more complicated as airlines and credit-card perks reshape who gets in. Policy & Cost of Living: A Bloomberg op-ed argues the Jones Act functions like a tax that raises shipping costs for places like Honolulu, using a study estimate of $1,800 a year for Hawaiian families.

Hawaii Politics & Elections: Gov. Josh Green cruised to the Democratic primary win and will run again Nov. 3 with Kauai Mayor Derek S.K. Kawakami as his lieutenant governor running mate. In Congress, Rep. Ed Case held off challenger state Sen. Jarrett Keohokalole, while Jill Tokuda also advanced. OHA & Local Governance: Office of Hawaiian Affairs at-large trustee races narrowed to six for the general election, with incumbents leading; meanwhile, Honolulu City Council District 4 is headed to November as Trevor Ozawa leads but Tommy Waters’ disqualification keeps the seat in play. County Policy: Hawaii County lawmakers weighed a proposal to create a new tax class for hosted short-term rentals (a “bed and breakfast” category) to give primary-residence hosts a different rate. Business & Regulation: The state Department of Health issued notices of violation and fines to Island Smoke and Vape for allegedly refusing lawful inspections. Aviation & Consumer Travel: A former flight attendant pleaded guilty in a scheme to defraud major airlines by posing as a pilot to obtain free discounted “Non Rev” flights.

Maui Wildfire Recovery Watch: Three years after the Aug. 8, 2023 Lahaina fires, UH researchers say recovery is improving but uneven, with Lahaina fire survivors still facing mental-health strain; the Maui Wildfire Exposure Study reports 4,000+ appointments for 2,500+ participants, including screenings for heavy-metal exposure and social needs. Airline Pricing & Travel Rewards: American Airlines will end free economy-to-business upgrades for AAdvantage status members on select routes, including some flights to Hawaii, shifting eligible upgrades to premium economy instead. Local Politics & Business Climate: Hawaii’s Democratic primary for U.S. Rep. Ed Case’s seat pits him against state Sen. Jarrett Keohokalole, a generational-change challenge tied to concerns about corporate influence and Israel policy. Utility Earnings & Maui Settlement Accounting: Hawaiian Electric Industries’ profit jumped in Q2 largely due to a noncash accounting change tied to Maui wildfire settlement installment payments. Energy Infrastructure Debate: Oahu residents weigh a Japanese company’s proposed LNG plan for Kalaeloa, with more community engagement planned during the FERC review. Economic Development Grants: Hawaiʻi County opened applications for a new $250,000 Event Sponsorship Program to fund events that drive tourism, culture, health, and local business benefits.