To start with...get a good attorney.
To start with, when you collect, store any product that is combustible, flammable or poses a potential environmental effect in quantities of 30 gallons or more, you are required to have a secondary containment system, spill control and a permit, issued by local, state or federal epa or public health agency (local). This is required under both the CERCLA, the international fire code (adopted by local and state agencies) Article 79 and 80, and permit is required by article 4.
You must also purchase caustics to distill the product....a permit is also required for any mixing, dispensing and distillation process- same codes. These same codes also require you to have Class I, division 1 or 2 electrical wiring for any inside mixing, storage and dispensing.
While it is not illegal in most states to sell the equipment to make the product, it is illegal for anyone to sell the caustics to you in the quantity required for this process without a business license and other permits- including for transportation (under the Federal code of regulation, part 40 & 49). if you are reported by anyone, they will receive a 10% reward from the national "We-Tip" program- the average (total collected fine and investigation) fine for a "small business" is $1 million dollars, the average clean-up including disposal, assessment and temp permits is $2 million...and this can be instituted by any environmental, public health, fire department, law enforcement agency, district attorney and any local, state or federal agency.
While many will chime in that there's nothing wrong in doing this, or I don't know what I am talking about, check out Tuscan AZ, 2002 the feds came in and arrested a homeowner not for making bio-diesel, but because of the process, they went to jail for child endangerment (seems they had a little fire- I don't recall if it was related to the bio-diesel or not), but the local gov did the reports, the state & feds choose to clean the mess up and prosecute and fine and take everything the guys homeowners insurance would handle...then guess what, although the judge ordered restitution and reduced the charge from a felony to a misdemeanor, he can’t get homeowners insurance...from any company. It's really not worth it.
BTW, the latest industry news is in Florida where using published website chat information, a homeowner was fined $500k for making biodiesel (final appeal decision after 3 years) & it included obtainment of regulated products (the sellers got busted too), illegal mixing, dispensing, environmental damage/contamination including ground & vapor particulate was confirmed in the garage walls.....the nail on the coffin, this guy like to ask questions and get advise of how to make, store, use etc on a chat page......