HAGÅTÑA (The Guam Daily Post) — Bill 320-36, the last fuel-price-related measure before the Legislature this emergency session, has been referred to a committee for a public hearing.
Sen. Clynton Ridgell, the bill’s author, objected to the motion to place the measure back in committee, but said the bill will now have the opportunity to receive public input.
“It’s unfortunate. I believe it is a good bill but I must respect the will of the body. Ultimately, it will allow the measure to have a public hearing which in turn will afford full public input, and public input is always good for any measure we discuss,” Ridgell told the Guam Daily Post.
Unlike the other fuel price bills introduced over the last few months, which attempt to curb costs at the pump by slashing taxes, Bill 320 would impose a price cap on fuel products sold on Guam.
“Given the lack of competition on the price per gallon as reflected by historical data on the price per gallon of gasoline products, I Liheslaturan Guåhan intends to take the extraordinary step to place a price cap on gasoline products sold on Guam which takes the landed price per gallon and allows up to a twenty percent (20%) increase to cover local transportation costs and a fair profit margin,” the bill stated in part within its findings and intent.
Bill 290-36, a Business Privilege Tax-related measure from Sen. James Moylan, also hasn’t undergone a public hearing and was also sent back to the committee this session.
The Legislature convened Friday for the emergency session, most of which was spent discussing two liquid fuel tax and surcharge-related measures: Bills 261-36 and 295-36. The former proposes to repeal the surcharges and most taxes, while the latter would only impose a six-month moratorium on the same.
Bill 260-36, a measure to revert fuel taxes to an earlier rate, was also on the agenda but that was passed over in favor of Bill 261.
Ultimately, it was Bill 295 that passed the Legislature, although any potential savings from this bill may only result in several cents off. Even then, prices are likely to keep rising. Ridgell voted no on both Bills 261 and 295. He has been critical of utilizing tax cuts in light of record profits among large oil companies.
“These Big Oil companies have us fighting one another at the Legislature over who and how we are going to lower their taxes. Meanwhile, they are making record breaking profits and laughing at us all the way to the bank,” Ridgell stated in a release on the introduction of Bill 320.
More calls to use federal assistance
Intertwined within the hours of discussion last week were calls for the governor to provide more relief to Guam residents through federal dollars.
As lawmakers debated Bill 261 and 295 on Friday, Sen. Telo Taitague attempted to place amendments that would give the governor the option to utilize American Rescue Plan funding to open another round of Prugråman Salåppe’, the direct assistance program revived in February to help with surging gas prices. However, the amendments were determined non-germane to their respective bills and failed.
Regardless, some lawmakers did commit to supporting a letter to the governor, and on Friday, Taitague submitted that request, signed by a bipartisan group of colleagues. Lawmakers are not only seeking another round of Prugråman Salåppe’, but also an expansion of the program to cover more residents.
“Fuel has become a lifeline for water, shelter and food, and price increases affect its affordability,” the letter to the governor stated.
This marks another appeal from lawmakers for direct assistance through federal funding. Sen. Frank Blas Jr. had earlier written to the governor to release more direct financial aid, but was told that ARP moneys have been dedicated, even if they haven’t been fully expended yet.
The governor suggested that the Legislature should utilize its authority to provide direct aid through the General Fund, which would not be subject to federal rules and guidelines.
A Shell employee pumps gas into a customer’s gas tank in upper Tumon, Guam on June 3, 2022.
