Vegetable oil fuels cars -- and tax bills

By Evan Halper

Drivers who use cooking grease to run their diesel vehicles often don't realize they're supposed to obtain permits and pay a state tax on each gallon. Even the governor has to comply.

Dave Eck, a Half Moon Bay mechanic, had attracted a media spotlight with his fleet of vehicles fueled by used fryer grease from a local chowder house. So when Sacramento called, he figured officials wanted advice on promoting alternative fuels.

Not at all. The government rang to notify Eck that he was a tax cheat. He was scolded for failing to get a "diesel fuel supplier's license," reporting quarterly how many gallons of grease he burns, and paying a tax on each gallon.

more -