Perry Hall Energy Fraud Case Prompts EPA Reform

A case involving , a Perry Hall businessman accused of , has attracted national attention, including members of Congress who are calling for reform at the Environmental Protection Agency, The Washington Post reports.

Patch first on the case in October 2011. Hailey was 33 when he was charged and was living in the 10000 block of Catron Road in Perry Hall.

An investigation by several federal and local regulatory and law enforcement agencies found that Clean Green Fuel, LLC—a company based in White Marsh and run by Hailey—sold more than 32 million renewable fuel credits, also known as renewable identification numbers, to brokers and oil companies for about $9 million.

Federal prosecutors allege Hailey fabricated the identification numbers.

All oil companies in the U.S. are required to produce a designated amount of renewable fuel or to purchase credits, known as renewable identification numbers, the press release states. These credits are largely available from producers of renewable fuels, according to the release.

However, Clean Green Fuel did not produce any renewable fuel, investigators found. Hailey is accused of fraudulently creating the RINs on his computer without any actual fuel to back them.

The Washington Post article mentions another biodiesel company based in Texas, Absolute Fuels LLC, that is facing similar accusations.

The cases have since prompted responses from biofuel companies across the country, trade associations and members of Congress.

Members of the Natural Resources Defense Council, American Fuel and Petrochemical Manufacturers and the Biobased Industry Center are calling for greater consistency and transparency related to renewable fuel credits, according to the article. 

Rep. Ed Whitfield, a Kentucky Republican, and Rep. Henry A. Waxman, a California Democrat—ranking members of the House Energy and Commerce subcommittee—have also called for reform in the EPA's procedures, the article states.

“We need to make sure that EPA is doing its job,” Whitfield states in the article. “That means addressing problems like RIN fraud before they get further out of hand and cause significant damage.”

Read the full Washington Post article here.

Should all biofuel companies be subject to greater regulation because of charges against a small number of companies? Tell us in the comments.