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4 AUGUST 2016 | FUEL OIL NEWS | www.fueloilnews.com DATELINE BREAKING NEWS in easing the regulatory burden that is cur- rently placed on jurisdictional propane systems, NPGA said. AEC: VERMONT GAS PIPE- LINE COSTS RISE YET AGAIN Vermont Gas announced recently that its 41-mile natural gas pipeline extension will cost 7.8% more than the most recent pro- jections, marking the latest in a series of cost overruns for the project, whose costs are borne largely by ratepayers, according to an article by Vermont Digger. "It's the fourth time Vermont Gas has upped the price tag," the article stated. The cost is now pegged at $165 million, up from the original estimate of $87 million. About 50,000 ratepayers in Chittenden and Franklin counties are subsidizing the pipeline, which will serve about 3,000 cus- tomers in Addison County. Vermont Digger quoted Don Rendall, the CEO of Vermont Gas, as saying that contractors for the company have had to blast more rock and ledge in the right-of- way corridor than anticipated. He said it has also been more expensive than antici- pated to drill around environmentally sensitive areas. AARP-Vermont, a longtime critic of the project, said the memorandum of understanding between Vermont Gas and state regulators doesn't go far enough to protect ratepayers. "Their agreement with the Department of Public Service left loop- holes you could drive a truck through," said David Reville, communications director of the senior citizen group. He said Vermont Gas can pass along "unavoidable delays" associated with land acquisition and pro- tests. "We don't feel ratepayers should bear those costs." Vermont Digger reports that Reville questions why the company couldn't bet- ter manage costs. "The department needs to do its job and closely scrutinize the effort," Reville said. To read more about this story and for a link to the original Vermont Digger Article, visit American Energy Coalition.org. Editor's Note: Vermont Fuel Dealers Association has been heavily involved in this issue. CROP-BASED BIOFUELS DON'T HARM FOOD SUPPLIES, NEW REPORT FINDS The Renewable Fuels Association said it was pleased with the findings from a recent report that concluded biofuels from crops do not harm food supplies. The report was funded by the U.S. Department of Energy, the World Bank and other groups. "The high-profile expansion of etha- nol production in the United States and Brazil, in tandem with a global price spike in food and commodities in 2007–2008, led many to contend that a causal relationship exists between biofuels expansion and food insecurity," according to the report. "The apparent short-term correlations are often cited as evidence of negative impacts of biofuels on food security. There are several problems with such assertions. "First, many studies attribute the food price spikes in 2008 primarily to other fac- tors such as oil prices, economic growth, currency exchange rates and trade poli- cies," the report stated. "Speculation in food commodities also contributed to price spikes in 2008 and 2011. "Second, the correlations did not persist as global biofuel consumption continued to grow and cereal prices fell or showed dis- tinct patterns over the last six years, driven by oil price, national agricultural policies and exchange rates," the report found. Among other conclusions, the report noted that while the 2012 U.S. drought caused some ethanol plants to reduce out- put or temporarily shut, "[t]hanks, in part, to the ethanol 'supply cushion' and market flexibility, there was not a notable jump in commodity prices as the 2012–2013 crop was harvested, despite a drought affecting 80% of U.S. agricultural land." "These findings reflect what many in the academic community and biofuels sector have been saying for some time—there is no meaningful relationship between growth in biofuels production and food security or food prices," said Renewable Fuels Association President and CEO Bob Dinneen. l F O N CALENDAR OF EVENTS AUGUST, 2016 Maine Energy Marketers Association Golf Classic August 29 Spring Meadows Golf Course Gray, ME Tel: 207-729-5298 www.MaineEnergyMarketers.com SEPTEMBER, 2016 Southern New England Energy Conference September 12-13 Hyatt Regency Newport Newport, R.I. Contact: David Chu Tel: 860-613-2041 Email: chu@cema.com AltWheels Fleet Days September 19, 2016 Four Points by Sheraton Norwood 1125 Boston Providence Turnpike Norwood, MA Tel: 508-698-6810 Fax: 508-698-6811 Email: meg@Classic-Communications.com Website: www.Classic-Communications.com PPA 2016 Fall Energy Conference and Annual Meeting September 27-29 Nittany Lion Inn State College, PA Tel: 717-939-1781 Website: www.ppmcsa.org The Renewable Fuels Association ... concluded biofuels from crops do not harm food supplies.