I've read this: "I made biodiesel about 5 yrs ago, and stored the fuel in a shop. Ran 100% in the summer and about 20% all winter, without a heated tank. In a rural setting there aren't any laws against making it yourself. If you use the fuel on public roads and highways, you would need to get a fuel card that allows them to audit your fuel use in order to collect the fuel tax. If you sell it, weights and measures dept. checks the metering for accuracy. If you use it off road, or sell for offroad then the rules aren't as strict.
There is a site called Biodiesel.org where they have all kinds of answers and links".
But also this: "Individual consumers of biofuels are eligible for the Biofuel Consumer Income Tax Credit ("BCITC"), which allows an income tax credit of $0.50 per gallon of biodiesel (B99) or ethanol (E85) blended fuel up to a maximum of $200 per year for each Oregon registered vehicle owned or leased by the taxpayer. Individual taxpayers may also receive a BCITC of up to $200 per year for their purchase of biosolids prepared from forest, rangeland, or agriculture waste or residue. The BCITC is also available to consumers who purchase certain biodiesel blend fuels for home heating".
Looks like Oregon is acting smart: "On June 20, the Oregon legislature passed one of the most aggressive biofuels incentive packages in the United States. It sets renewable fuel standards and provides major tax and production incentives for fuel retailers and processors to produce and sell biofuels and biomass. When combined with Oregon’s existing Business Energy Tax Credit, the new legislation will result in one of the most robust incentive packages in the nation for the development of ethanol and biodiesel". Biofuels Law Alert: Oregon Set to Adopt Aggressive Biofuels Incentives
Kinda looks to me like it might be the new moonshine.