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I don't think of it as (or do it because of) tax evasion; it's recycling in its simplest form, plain and simple. You are reusing a waste product, to me it is no different then a farmer making compost instead of buying (and paying taxes on) fertilizer. And its environmentally freindly.

All states regulate fuel; some regulate "blending", but most don't regulate or have laws pertaining to the use of "fuel additives" like octane boost, anti gel, lubricants, and others which are legal. If you are adding oil, wvo or anything else to diesel and get checked, tell them you are using...