Renewable energy credits are meant to encourage production of clean energy — but in this case, the credits were used by one Maryland man to cheat. Rodney Hailey was found guilty Monday of selling $9.1 million of fake renewable energy credits.
Hailey’s company claimed to make biodiesel fuel from used oil, but he never actually produced anything. Instead, he sold renewable energy credits to oil companies who are required to purchase renewable fuel, or credits from renewable producers, under a federal program.
Hailey spent money on jewelry, property and two dozen luxury cars, including Ferraris and Mercedes. Eventually, he was caught after a neighbor complained about the cars, which were taking up so much space they blocked a bus stop. Now, Hailey faces up to 20 years in prison, for wire fraud, money laundering and Clean Air Act violations.
Congress is now reviewing the renewable energy credit program to help prevent future fraud. Currently, buyers are expected to take responsibility for buying valid credits, and the program was designed with the assumption that producers would act in good faith.
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