AGP Executive Report

Agribusiness Trade: The Philippines’ Bureau of Plant Industry says the U.S. is close to expanding market access for fresh pineapple exports, with APHIS poised to open all U.S. ports within the year after a stakeholder comment period ends Aug. 10—moving beyond current limits that include Guam and the CNMI. Disaster Readiness & Utilities: Super Typhoon Bavi is bearing down on Guam and the Northern Marianas with winds up to 280 kmph, prompting Guam to move into COR1 at noon and residents to finish preparations, seek shelter, and stay out of the water; GPA crews are actively restoring power while warning of expected outages and grid instability during repairs. Business Continuity: A running list of businesses open or closed as COR levels change is circulating, while Docomo Pacific is partnering with Starlink Mobile to provide emergency connectivity if terrestrial networks fail. Public Safety Comms: NWS and local joint information centers are pushing frequent, plain-language updates via live briefings to help residents manage stress and act fast.

Disaster Preparedness: Guam moved into Condition of Readiness 1 and Tropical Cyclone Condition of Readiness 1 at noon Sunday as Super Typhoon Bavi nears the Marianas. Officials warned destructive winds could arrive within 12 hours, with Guam expecting tropical-storm-force winds late Sunday and typhoon-force conditions Monday; the storm’s track could bring the worst impacts if it passes near or over Rota. Residents were urged to finish preparations, stay indoors from COR 1 until COR 4, and seek shelter now—Astumbo Elementary School was reported at capacity as shelters opened at 7 a.m. Business Disruptions: A separate list showed multiple closures and limited hours for pharmacies, malls, and restaurants as Bavi approaches, with some sites open only until COR 1 is declared. Connectivity for Continuity: Docomo Pacific is partnering with Starlink Mobile to provide emergency SMS if terrestrial networks fail. Banking Impact: Bank of Hawai‘i said it will temporarily close all Guam and Saipan branches effective Monday, July 6, while call centers and online/mobile banking remain available.

Typhoon Bavi Threatens Guam, CNMI: Super Typhoon Bavi is now a Category 5 system with sustained winds around 160 mph, forecast to pass near or just south of Rota/Tinian and bring damaging winds, heavy rain and storm surge across all Marianas. Guam is under Condition of Readiness 2, shelters are set to open Sunday at 7 a.m., and residents are urged to secure homes and prepare for tropical-storm to typhoon-force conditions. Business Continuity Moves: Utilities and banks are adjusting operations—Guam Power Authority says its Sinlaku recovery crews will return ahead of Bavi to boost readiness, while Bank of Hawai‘i will temporarily close Guam and Saipan branches starting Monday, July 6 (call centers and online/mobile banking remain available). Emergency Connectivity: Docomo Pacific is partnering with Starlink Mobile to provide automatic emergency SMS if terrestrial networks fail, supporting customers, businesses and communities during outages. Weather Outlook Beyond Bavi: Trade-wind conditions and hazardous seas are also expected for the Fourth of July weekend, with small-craft advisories in Hawaii.

Typhoon Bavi Preparedness & Business Impact: Guam is bracing for Super Typhoon Bavi after it strengthened to Category 5 with forecasts near 160–175 mph winds and a track that could pass between Rota and Tinian, putting all islands at risk for damaging winds, heavy rain and storm surge. Local Emergency Orders: Guam is set to move to Condition of Readiness 2 at 10 p.m. Saturday, with shelters opening at 7 a.m. Sunday; registration and ID are required, and pets won’t be allowed. Utility Readiness: Guam Power Authority says its Sinlaku recovery crew will return Saturday to boost storm response capacity. CNMI Measures: CNMI moved to COR 3 and canceled the Liberation Day parade as residents and businesses prepare amid lingering recovery needs after Sinlaku. Banking Disruptions: Bank of Hawai‘i will temporarily close all Guam and Saipan branches Monday, July 6, while online and mobile banking stay available. Fuel & Consumer Relief: Bank of Guam and Shell launched an everyday 6% fuel discount for Visa Debit cardholders. Price Gouging Enforcement: AG Douglas Moylan is warning merchants, landlords and fuel providers that price gouging is prohibited as Bavi approaches, with price freezes once COR is declared and penalties for violations. Government Budget Timing: Guam’s budget session is underway but scheduling may shift due to Bavi.

Typhoon Bavi Preparedness: Guam and the CNMI moved into Condition of Readiness 3 as Typhoon Bavi approaches, with shelters set to open and officials urging residents and businesses to secure homes, stock supplies and finalize storm plans after Super Typhoon Sinlaku left parts of the region still rebuilding. Emergency Funding & Price Rules: Guam lawmakers advanced Bavi emergency response funding via Public Law 38-134, while AG Douglas Moylan warned merchants and landlords that price gouging is prohibited and wholesale/retail prices freeze once COR is declared. Local Governance & Budget Timing: Guam’s Legislature began its budget session, but scheduling may shift depending on Bavi’s track and timing. Utilities & Recovery Readiness: CNMI’s utilities operator is racing to finish Sinlaku restoration while preparing pre-storm measures for Bavi, including protecting equipment and coordinating power support. Banking & Consumer Savings: Bank of Guam and Shell launched an everyday 6% fuel discount for Visa debit cardholders in Guam and Saipan. Trade & Business Links: Oklahoma opened a Taiwan Regional Trade Office to expand investment and trade, highlighting energy, defense, aerospace and logistics ties.

Leadership & Energy: South Pacific Petroleum Corp. named William “Bill” Ada as CEO, the first Guam-born and raised leader in its 25-year history, effective June 1, as the company looks to build on its Exxon-era legacy while focusing on employees, customers and community service. Everyday Savings: Bank of Guam and Shell rolled out a 6% off fuel deal for Bank of Guam Visa Debit cardholders at participating Shell stations in Guam and Saipan, no sign-up required. Storm Readiness & Business Impact: Typhoon Bavi is intensifying toward the Marianas, with Guam officials urging residents and businesses to monitor forecasts and prepare; the CNMI canceled its 80th Liberation Day parade, while CUC said it’s racing Sinlaku recovery and securing equipment ahead of Bavi. Consumer Protection: Guam AG Douglas Moylan warned merchants and landlords that price gouging is prohibited as Bavi approaches, and that wholesale/retail prices freeze after a Condition of Readiness declaration. Infrastructure & Funding: FEMA approved nearly $14.7M in post-disaster funding across Guam and the CNMI, including $13.8M under Public Assistance for critical repairs and recovery projects. Airport & Tourism Economics: Lawmakers grilled GIAA over a $17.7M request amid a revenue shortfall, warning airlines could face fee hikes if funding isn’t approved. Finance & Compliance: A federal visa fraud marriage scheme landed two defendants on probation instead of prison time, with deportation expected for the non-U.S. citizen. Regional Business & Trade: Guam’s presence in global aviation planning continues as GUAMobility was tasked to design Oman’s Advanced Air Mobility strategy.

University of Guam Governance: The UOG Board of Regents elected Mike W. Naholowaa as chair and Dr. Janice P. Malilay as vice chair, effective June 1, as leadership transitions from outgoing chair Agapito “Pete” Diaz. Airport & Tourism Finance: Guam International Airport Authority lawmakers pressed GIAA over a $17.7M request tied to a projected revenue shortfall, warning airlines could face major fee hikes without the funding. Local Business & Community Giving: GTA Gives kicked off its annual Back-to-School Supply Drive for Sanctuary, Inc., with donation boxes at all GTA stores through July 31. Public Input for Fisheries: The Guam Coastal Fisheries Management Plan public comment period was extended to July 21, giving fishers and businesses more time to weigh in on reef fish recovery measures. New Guam Cannabis Step: Guam’s Cannabis Control Board approved the first operating permit for a cultivator, Real Deal LLC (Deep Green Guam), clearing a key licensing milestone after years of regulatory delays. Storm Watch: Tropical Storm Bavi (09W) shifted closer to Guam and could intensify to a Category 5 super typhoon, prompting emergency funding discussions and preparedness guidance for residents and businesses. Defense & Regional Economy Link: U.S. Marines deployed an Iron Dome-based MRIC system to Japan, with Guam’s recent MRIC appearance during Valiant Shield underscoring the island’s role in regional readiness. Workforce Policy in CNMI: CNMI received USDOL approval for its 2026 prevailing wage study for the CW-1 visa program, updating wage data that affects hiring costs and local labor planning. U.S. Military Moves: The Army is cutting thousands of PCS relocations to stabilize service members’ moves, a shift that can ripple into Guam’s household goods and support services. Real Estate/Resort Growth: Dusit Place announced new tenant openings, including dining, fitness, retail, and a revamped Aquarium of Guam, aiming to boost Guam’s lifestyle tourism draw.

Airport & Tourism Finance: Guam International Airport Authority asked senators for $17.7M after warning airlines could face fee hikes of 23% to nearly 50% if funding isn’t approved, as lawmakers scrutinize a $10.5M revenue shortfall and ongoing capital projects. Energy Costs: The Public Utilities Commission approved GPA’s Levelized Energy Adjustment Clause effective July 1, pushing the average residential bill up about $58 per month as fuel under-recovery and shipment costs flow through rates. Local Business & Community Support: GTA Gives kicked off its annual Back-to-School Supply Drive through July 31, collecting classroom essentials for Sanctuary, Inc. Civic Engagement: Micronesia Mall hosts a free “Meet the Candidates” event Sunday, July 5, with voter registration support from the Guam Election Commission. Regulation & Industry Growth: Guam’s Cannabis Control Board approved the island’s first operating permit for a cultivator, clearing a major step toward local production. Disaster Readiness: Tropical Storm 09W is forecast to intensify rapidly, with emergency managers urging residents and businesses to finalize 7–10 days of supplies and secure property. Defense & Regional Activity: Task Force Talon stood down as a newly reactivated air defense battalion takes over, expanding Guam’s air defense posture beyond a single THAAD battery.

Tourism & Airport Pressure: Guam lawmakers grilled Guam Visitors Bureau and airport officials over a bleak visitor outlook, with April’s passenger drop and concerns that a $10M airline incentive won’t fix results without clear accountability. Power Costs: The Public Utilities Commission approved GPA’s July 1 fuel surcharge via the LEAC, lifting the average residential bill by about $58 as under-recovery and fuel shipment costs bite. Childcare Funding Gap: Gov. Lou Leon Guerrero released $5M to keep licensed childcare providers paid while federal subsidies are delayed. Energy & Markets: PUC also approved a fuel surcharge increase tied to GPA’s LEAC adjustment, while broader business watchers flagged Guam’s fragile economy and the need for better tourism strategy. Cannabis Licensing: Guam issued its first cannabis cultivation operating permit—Real Deal LLC (Deep Green Guam)—clearing a major regulatory milestone. Fisheries Planning: Guam extended public comment on the Coastal Fisheries Management Plan draft to July 21. Community & Workforce: GTA Gives launched its Back-to-School Supply Drive for Sanctuary, Inc., and UOG recognized graduate award winners. Business Growth: Dusit Place announced new tenant openings, including dining, fitness, and a reimagined Aquarium of Guam. Defense/Tech (Local Impact): A B-2 from Andersen AFB conducted a live-fire LRASM anti-ship test north of the Marianas during Valiant Shield, underscoring Guam’s role in regional readiness.

Power Costs & Regulation: The Guam Public Utilities Commission approved GPA’s Levelized Energy Adjustment Clause effective July 1, lifting the average residential bill by about $58 as the fuel recovery charge rises from $0.135840 to $0.194150 per kWh for meters read through Jan. 31, 2027. Tourism Oversight: Lawmakers grilled Guam Visitors Bureau and airport officials at a joint hearing, with senators saying results are “pretty bleak,” citing a major April passenger drop and warning the $10 million airline incentive needs measurable accountability. Airport Financial Pressure: Guam International Airport Authority reported a $1.4M operating revenue shortfall in April while looking for a July rebound as seat capacity and flights are expected to improve. Public Finance Accountability: The public auditor said GovGuam’s FY2025 audit will miss the statutory deadline, with component units still finalizing statements over missing other post-employment benefits costs. Local Business & Jobs: A new medical oncology practice opened at Tumon Sands Plaza, while Guam’s bar sector is shrinking amid inflation and labor crunch, with active liquor licenses down to 801 from about 1,100 pre-pandemic. Community & Sports: Guam’s U18 beach volleyball pair Alessandra “Ally” Leon Guerrero and Erica Cassidy will represent the island at the FIVB World Championships in The Hague. Public Health: FDA recalled multiple moringa leaf powder supplements tied to salmonella illnesses reaching 119 cases across 37 states. Safety & Crime: A Guam Police sergeant was charged federally with sex trafficking of a 14-year-old girl and placed on administrative leave. Weather Watch: Invest 95W remains a medium chance for development, with no watches or warnings issued for Guam as the system lingers near the Marshalls.

Tourism Oversight: Guam Visitors Bureau and airport officials faced a tough Legislature grilling over a projected $10M+ shortfall and a bailout request tied to slower passenger recovery, with lawmakers pressing on how public funding is translating into visitor arrivals. Public Health & Schools: F.B. Leon Guerrero Middle School in Yigo cleared phase one of a health inspection, moving toward reopening after a 2023 closure. Local Business & Hospitality: Guam’s bar and entertainment sector is shrinking as inflation, labor shortages, and weaker military foot traffic squeeze liquor license activity and margins. Infrastructure & Transit: Dededo broke ground on a $9.5M Park & Ride Northern Terminal to anchor GRTA’s “Road to Education” route, supported by buses and vans. Legislation for Biosecurity: Bill 334-38 advanced to simplify Guam’s invasive species inspection fee collection, shifting costs to importers and carriers without raising port fees. Legal Trouble: A Guam Police sergeant was charged in federal court with sex trafficking of a 14-year-old girl and placed on administrative leave. Weather Watch: Invest 95W remains a medium development risk with a track that could shift toward Guam and the Marianas as the July 4 holiday nears.

Transit & Infrastructure: Guam Regional Transit Authority broke ground on the Dededo Park & Ride Northern Terminal, a three-acre hub tied to the “Road to Education” route, funded by a $9.5M federal grant, with plans for 10 stops and new buses/vans to connect residents to schools and health services. Tourism & Community: Tumon Night Market marked Pride Month with LGBTQ+ vendors and a parade, underscoring the island’s growing event-driven economy. Hospitality Under Pressure: Guam’s bar and entertainment sector is shrinking as inflation, labor shortages, and weaker military foot traffic squeeze alcohol license activity, with operators warning that rising costs are becoming unsustainable. Public Finance Oversight: A performance audit found oversight and monitoring gaps in Guam’s $10.8M Village Community Care childcare program, pointing to inconsistent recordkeeping across municipalities. Energy Costs: The Guam power bill is set to rise about $58 starting July 1, as the PUC approved a rate hike and residents weigh the impact. Business Development: Junior Achievement Guam is recruiting volunteers from business and professional circles to mentor students in entrepreneurship, financial literacy, and career readiness. Marine & Research: The E/V Nautilus launched deep-sea expeditions to map Mariana reserves and critical minerals, aiming to build scientific baselines across U.S. waters around Guam and the CNMI.

Transit & Infrastructure: Dededo officials broke ground on a new 3-acre Park & Ride tied to the “Road to Education” route, funded by $9.5M in federal grants, with most money earmarked for buses and neighborhood feeder vans after an environmental assessment. Telecom & Business: The FCC wrapped Auction 113 for AWS-3 spectrum, with Verizon the biggest winner (82 licenses for $3.2B); EchoStar/Conundrum Wireless won two Guam markets for $1M. Tourism Watch: Guam Visitors Bureau reported May tourism tax collections at $2.756M (about 12% above budget) even as overall arrivals fell 24%, and approved a Tumon rescue-station infrastructure bid. Accountability in Public Spending: A performance audit found oversight and monitoring gaps in Guam’s $10.8M Village Community Care childcare program, with inconsistent recordkeeping across municipalities. Child Welfare Crisis: Guam’s foster system is short about 70 foster homes, leaving children waiting for placements and increasing reliance on shelters. Local Governance & Costs: A bill would double juror pay to $60 per day (or $70 if trials run over a month), aiming to better reflect lost wages for private workers. Community & Events: GCC opened vendor registration for its July 11 Christmas in July Bazaar, while Guam also marked Go Skateboarding Day at Dededo Skate Park.

Energy Costs & Utilities: The Guam Public Utilities Commission approved a Levelized Energy Adjustment Clause increase, pushing the average residential power bill up about $58 starting July 1, with the higher fuel costs tied to global shipping disruptions. Tourism Finance: Even as May visitor arrivals fell 24%, the Guam Visitors Bureau reported stronger-than-expected tourism tax collections, with May Tourist Attraction Fund cash about 12% above budget and year-to-date arrivals up versus last year. Public Safety Infrastructure: GVB moved forward with plans to build a Guam Fire Department rescue station in Tumon to reduce emergency response bottlenecks. Local Business & Community Events: Hotel Nikko Guam is promoting a Summer & Fall Meat & Beer banquet deal through Oct. 31, while GCC is hosting a Christmas in July Bazaar July 11 to raise scholarship funds for students. Civic & Governance: A bill would double daily juror pay in Superior Court, aiming to better match private-sector wage losses during jury duty. Healthcare & Housing Pressure: A foster care shortage is worsening, with dozens of children waiting for placements as the system strains under rising removals and meth-related impacts.

Power Costs: Guam’s Public Utilities Commission approved a Levelized Energy Adjustment Clause increase, pushing the rate to 19.4 cents per kWh starting July—about $58.31 more monthly for a typical 1,000 kWh customer—driven by fuel-cost spikes tied to the U.S.-Israel conflict and the Strait of Hormuz disruption. Port Accountability: The Port Authority of Guam received a clean, unmodified FY 2025 audit opinion, cutting operating expenses by $5.9M and ending the year with net position up to $40.9M. Hospital Site Lock-In: After years of debate, officials held a dedication for the new Mangilao hospital location, with Gov. Lou Leon Guerrero citing estimated costs of $743M for a new build versus $763M to repair the old facility. Renewables Roll Forward: The PUC approved renewable energy acquisition awards for four sites totaling 62 MW under GPA’s Phase 4 projects, including locations tied to the Guam International Country Club and near Andersen AFB. Military Buildup Scrutiny: Residents told lawmakers Guam is being repositioned as a forward offensive platform without civilian shelters or a seat at decision-making, as missile and related funding plans expand. Local Business & Community: McDonald’s of Guam & Saipan donated $1,500 to support the Saipan Chamber of Commerce golf tournament; in Guam, Tumon Night Market returns with a Pride theme Sunday. Civic Pay: A bill would double juror daily pay in Superior Court of Guam to $60, aiming to better reflect lost wages for private-sector workers.

Power Costs: The Guam Public Utilities Commission approved a Levelized Energy Adjustment Clause increase, pushing the average residential bill up about $58.31 starting July 1, with the new rate set through January 2027 as fuel costs remain volatile. Port Accountability: The Port Authority of Guam received a clean FY 2025 audit and cut operating expenses by $5.9M, ending the year with net position of $40.9M. Renewables: PUC also approved renewable energy acquisition awards for four projects totaling 62 MW, including sites on Chamorro Land Trust Commission property and near Andersen Air Force Base. Healthcare Infrastructure: After years of debate, officials dedicated the Mangilao site for Guam’s new hospital complex, aiming to consolidate Public Health and Behavioral Health services under one “whole Guam hospital” plan. Cannabis Industry: The Cannabis Control Board approved Guam’s first permit to operate a cannabis cultivation facility, a major step toward a regulated market 12 years after medical marijuana legalization. Civic Pay: A bill would double juror daily pay in Superior Court of Guam, from $30/$40 to $60/$70 depending on trial length. Tourism & Community: Tumon Night Market returns with a Pride theme Sunday, while registration is open for the Mall Ball 3x3 Adult/Open Tournament at Micronesia Mall July 17-19.