Where I live (in the UK), the company Stagecoach has unveiled a fleet of buses running on biodiesel that has been recycled from used cooking oil. Indeed the people who live on the bus routes are given containers to put their used oil into, to be taken to a recycling facility. In return they get a discount on public transport.
While this may not be a total solution, I think it is quite a nice approach to the problem, after all the used cooking oil would most likely be thrown out anyway.
I refer you to this website if you wish to learn more about it -
http://www.thebiobus.com/