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Hawaii plans to increase hotel tax to help it cope with climate change

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Hawaii plans to increase hotel tax to help it cope with climate change

People are seen on the beach and in the water in front of the Kahala Hotel & Resort in Honolulu, Nov. 15, 2020.

Jennifer Sinco Kelleher/AP


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Jennifer Sinco Kelleher/AP

HONOLULU — In a first-of-its kind move, Hawaii lawmakers are ready to hike a tax imposed on travelers staying in hotels, vacation rentals and other short-term accommodations and earmark the new money for programs to cope with a warming planet.

State leaders say they’ll use the funds for projects like replenishing sand on eroding beaches, helping homeowners install hurricane clips on their roofs and removing invasive grasses like those that fueled the deadly wildfire that destroyed Lahaina two years ago.

A bill scheduled for House and Senate votes on Wednesday would add an additional 0.75% to the daily room rate tax starting Jan. 1. It’s all but certain to pass given Democrats hold supermajorities in both chambers and party leaders have agreed on the measure. Gov. Josh Green has said he would sign it into law.

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Officials estimate the increase would generate $100 million in new revenue annually.

“We had a $13 billion tragedy in Maui and we lost 102 people. These kind of dollars will help us prevent that next disaster,” Green said in an interview.

Green said Hawaii was the first state in the nation to do something along these lines. Andrey Yushkov, a senior policy analyst at the Tax Foundation, a Washington, D.C.-based nonprofit organization, said he was unaware of any other state that has set aside lodging tax revenue for the purposes of environmental protection or climate change.

Adding to an already hefty taxThe increase will add to what is already a relatively large duty on short-term stays. The state’s existing 10.25% tax on daily room rates would climb to 11%. In addition, Hawaii’s counties each add their own 3% surcharge and the state and counties impose a combined 4.712% general excise tax on goods and services including hotel rooms. Together, that will make for a tax rate of nearly 19%.

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The only large U.S. cities that have higher cumulative state and local lodging tax rates are Omaha, Nebraska, at 20.5%, and Cincinnati, at 19.3%, according to a 2024 report by HVS, a global hospitality consulting firm.

The governor has long said the 10 million visitors who come to Hawaii each year should help the state’s 1.4 million residents protect the environment.

Green believes travelers will be willing to pay the increased tax because doing so will enable Hawaii to “keep the beaches perfect” and preserve favorite spots like Maui’s road to Hana and the coastline along Oahu’s North Shore. After the Maui wildfire, Green said he heard from thousands of people across the country asking how they could help. This is a significant way they can, he said.

Hotel industry has mixed feelingsJerry Gibson, president of the Hawaii Hotel Alliance, which represents the state’s hotel operators, said the industry was pleased lawmakers didn’t adopt a higher increase that was initially proposed.

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“I don’t think that there’s anybody in the tourism industry that says, ‘Well, let’s go out and tax more.’ No one wants to see that,” Gibson said. “But our state, at the same time, needs money.”

The silver lining, Gibson said, is that the money is supposed to beautify Hawaii’s environment. It will be worth it if that’s the case, he said.

Hawaii has long struggled to pay for the vast environmental and conservation needs of the islands, ranging from protecting coral reefs to weeding invasive plants to making sure tourists don’t harass wildlife, such as Hawaiian monk seals. The state must also maintain a large network of trails, many of which have heavier foot traffic as more travelers choose to hike on vacation.

Two years ago, lawmakers considered requiring tourists to pay for a yearlong license or pass to visit state parks and trails. Green wanted to have all visitors pay a $50 fee to enter the state, an idea lawmakers said would violate U.S. constitutional protections for free travel.

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Boosting the lodging tax is their compromise solution, one made more urgent by the Maui wildfires.

A large funding gapAn advocacy group, Care for Aina Now, calculated a $561 million gap between Hawaii’s conservation funding needs and money spent each year.

Green acknowledged the revenue from the tax increase falls short of this, but said the state would issue bonds to leverage the money it raises. Most of the $100 million would go toward measures that can be handled in a one-to-two year time frame, while $10 to $15 million of it would pay for bonds supporting long-term infrastructure projects.

Kāwika Riley, a member of the governor’s Climate Advisory Team, pointed to the Hawaiian saying, “A stranger only for a day,” to explain the new tax. The adage means that a visitor should help with the work after the first day of being a guest.

“Nobody is saying that literally our visitors have to come here and start working for us. But what we are saying is that it’s important to be part of of the solution,” Riley said. “It’s important to be part of caring for the things you love.”

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Ed Martin, outspoken Justice Department lawyer, is formally accused of ethical violations | CNN Politics

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Ed Martin, outspoken Justice Department lawyer, is formally accused of ethical violations | CNN Politics

Ed Martin, an outspoken Trump administration official, is facing attorney discipline proceedings in Washington, DC, for a letter he sent to Georgetown Law about its diversity programs, the district’s professional conduct investigator announced on Tuesday.

Martin is formally accused of violating his ethical codes as an attorney for telling Georgetown Law’s dean last year that his Justice Department office wouldn’t hire students because of the school’s diversity, inclusion and equity initiatives programs, according to the filing from Hamilton Fox, the disciplinary counsel for DC who acts as a quasi-prosecutor on attorney discipline matters.

Unlike unsolicited complaints, Fox’s formal disciplinary complaint kicks off professional conduct proceedings for Martin in which he will need to respond and could be sanctioned or ultimately lose his law license.

Fox’s announcement on Tuesday marks the first major bar discipline proceeding against a high-profile administration official or attorney supporting President Donald Trump during Trump’s second term. Several Trump lawyers faced disciplinary proceedings after the efforts to overturn Joe Biden’s victory in the 2020 presidential election, including Rudy Giuliani, who lost his law license.

“Acting in his official capacity and speaking on behalf of the government, he used coercion to punish or suppress a disfavored viewpoint, the teaching and promotion of ‘DEI,’” Fox wrote in the complaint. “He demanded that Georgetown Law relinquish its free speech and religious rights in order to continue to obtain a benefit, employment opportunities for its students.”

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Martin was removed from the top prosecutor job in DC after senators made clear he would not be confirmed to the role, but has remained at the Justice Department in several roles, including as pardon attorney.

“Mr. Martin knew or should have known that, as a government official, his conduct violated the First and Fifth Amendments to the Constitution of the United States,” Fox wrote.

Martin is being represented by a Justice Department attorney, a source told CNN.

A spokesperson for DOJ attacked Fox’s complaint. “The DC bar’s attempt to target and punish those serving President Trump while refusing to investigate or act against actual ethical violations that were committed by Biden and Obama administration attorneys is a clear indication of this partisan organization’s agenda,” DOJ said.

Martin had sent the letter to Georgetown Law while serving temporarily as US attorney for DC, a prominent Justice Department position, and told the school his federal prosecutors’ office wouldn’t hire Georgetown’s law school students. It came at a time when the Trump administration was beginning to crack down on universities for their DEI efforts.

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In his letter, Martin claimed a whistleblower told him that the school was teaching and promoting DEI.

Martin also violated attorney ethics rules by contacting judges of the DC court directly, Fox alleged, rather than going through official channels, once he was informed he was under investigation for his professional conduct. The DC Court of Appeals ultimately signs off on attorney discipline findings.

Early last year, Fox’s office had formally asked Martin to respond to a complaint it received by a retired judge regarding the Georgetown letter.

Martin instead wrote to the judges on the DC court complaining about Fox.

“In that letter, he stated that he would not be responding to Disciplinary Counsel’s inquiry, complained about Disciplinary Counsel’s ‘uneven behavior,’ and requested a ‘face-to-face meeting with all of you to discuss this matter and find a way forward,’” Fox wrote.

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“He copied the White House Counsel ‘for informational purposes because of the importance of getting this issue addressed,’” Fox said.

The top judge in the DC courts told Martin the court wouldn’t meet with him about the disciplinary matter and that he would need to follow procedure.

With Fox’s complaint, there will now be several steps ahead of bar discipline authorities looking at Martin’s action, and Fox didn’t specify how Martin should be reprimanded or punished if the discipline boards and the court ultimately determine he violated his ethical codes.

Spokespeople for the Justice Department didn’t immediately respond to requests for comment on Tuesday morning.

In recent days, Attorney General Pam Bondi announced her office would have a more powerful role in reviewing attorney discipline complaints against Justice Department attorneys, potentially setting up an approach that could keep the department at odds with the bar on behalf of DOJ attorneys facing their own individual disciplinary proceedings.

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CNN’s Paula Reid contributed to this report.

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Europe and Asia battle for LNG as Iran war chokes supply

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Europe and Asia battle for LNG as Iran war chokes supply

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Asian and European buyers are battling to source liquefied natural gas after the war in the Middle East choked off shipments through the Strait of Hormuz, blocking a fifth of global supplies.

In an indication of the intensifying contest for LNG since the US and Israel launched strikes on Iran, a handful of gas carriers have abruptly changed course while sailing to Europe and swung towards Asia instead, according to ship monitoring data analysed by the FT.

Countries across Asia are highly dependent on oil and gas sent through the Strait of Hormuz, a critical waterway where shipping has slowed to a near standstill.

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Most of the LNG produced in Qatar and the United Arab Emirates is ordinarily shipped through the strait to Asia, and Asian LNG prices surged almost immediately after war broke out, creating an incentive to divert US gas to the region.

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Taiwan, South Korea and Japan are among the countries that need to source LNG to make up for supplies they will not receive from the Gulf, said Massimo Di Odoardo, head of gas and LNG analysis at consultancy Wood Mackenzie.

Taiwan relied on Qatar for more than 30 per cent of its gas consumption in 2025, according to Citigroup, while for South Korea and Japan the figures were 15 per cent and 5 per cent respectively. Asia typically uses more gas than Europe in the hotter summer months because of more air-conditioning use, creating urgency for Asian utilities to secure cargoes.

The vast majority of LNG is sold under long-term contracts rather than on the spot market, but some buyers are able to change the final destination of their purchases and some sellers are willing to break contracts if prices rise high enough.

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By Thursday, surging European gas prices and rocketing shipping rates had swung the balance back against diversion of US LNG to Asia, according to data company Spark Commodities.

The decision on where to send gas carriers can depend on the relative levels of the European gas price, Asia’s JKM benchmark for LNG and shipping rates.

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For European buyers, the battle with Asia for LNG supplies is eerily familiar to the situation four years ago after Russia slashed pipeline natural gas flows to the continent following Moscow’s full-scale invasion of Ukraine. Competition for spare cargoes then pushed prices to record levels.

On Monday, European gas prices reached as high as €69.50 per megawatt hour, more than double their level before the Iran conflict began. Even so, prices are still far from the €342 per megawatt hour reached in 2022.

JKM gas prices also more than doubled since the start of the war to $24.80 per 1mn British thermal units by Monday, equivalent to €73.10/MWh.

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European buyers have learnt from their experience in 2022. “Europe has more weapons at its disposal in this extreme price scenario to try and fight,” said Alex Kerr, a partner at law firm Baker Botts.

Buyers had started putting clauses in contracts to say that suppliers would face much higher penalties if they diverted cargoes for commercial gain, Kerr said.

There is also much more LNG on the market now that is not committed to set destinations, largely because of new projects starting in the US.

While producers such as Qatar impose strict rules on where its LNG can be sent, almost all US exports are allowed to sail wherever buyers want. Several analysts said there had also been an increase in the willingness of some producers to break contracts for financial advantage.

This makes diversions more likely, while the reluctance of some European buyers to sign long-term supply contracts before the outbreak of war this month could prove costly.

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Expectations of a global supply glut convinced some European buyers that it would be cheaper to wait until later in the year to sign supply deals.

Wood Mackenzie’s Di Odoardo said the buyers had also held off on LNG purchases because new EU legislation on methane emissions made it unclear whether they could incur penalties in the future.

The risk of prices rising as Europe and Asia fight for available cargoes is increasing every day the Strait of Hormuz stays almost closed.

Gas is more difficult to store and to carry in tankers than oil, making its markets more vulnerable to shortages and price shocks.

“The longer the Strait remains shut, the greater the risk that the shipping disruption turns into a genuine gas shortage, as tankers cannot load and facilities have limited storage,” said consultancy Oxford Economics in a research note.

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Additional reporting by Harry Dempsey in Tokyo. Data visualisation by Jana Tauschinski

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Is Iran another Iraq? : Sources & Methods

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Is Iran another Iraq? : Sources & Methods
Poor planning, overly ambitious goals, not thinking through the aftermath. These are the parallels that Richard Haass sees between the 2003 U.S. invastion of Iraq and its current air campaign against Iran.Haass was in charge of planning for the invasion as a top official in the State Department. He was a voice of dissent within the administration. Now he’s president emeritus of the Council on Foreign Relations and author of the Home & Away newsletter. He talks to Host Mary Louise Kelly about the Trump administration’s foreign policy and national security apparatus and where he sees it falling short on Iran.Email the show at sourcesandmethods@npr.orgNPR+ supporters hear every episode without sponsor messages and unlock access to our complete archive. Sign up at plus.npr.org.
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