That's the idea of Oren Rubin, business development general manager for the California biodiesel company BiOil (which hasn't produced gallon one, yet). Rubin's $97 million plan calls for a national disposal center network that would collect a lot of the 3.9 billion gallons of waste vegetable oil used at fast-food restaurants each year. Then, Pacific Biodiesel will turn the oil into biodiesel to sell to truckers (read more about Pacific Biodiesel and the Bio-Beetle here). BiOil would pay the restaurants a few cents a gallon, which is better for them, as they often need to pay to have waste grease hauled away currently.
This CNET article, where we found Rubin's idea, mentions other waste-fat-to-biodiesel plans going on around the country, but they're ones we've covered on AutoblogGreen before (like Tyson Chicken's plan).
[Source: Michael Kanellos / CNET News]