I have some lipo cells that are starting to puff, and started freaking out.  I don’t want them in my garage and I don’t know where else to store them.  Most of all, I have no idea how to properly (safely) dispose of them.

This site is pretty informative: BiPower USA.  Surprisingly, “The U.S. Environmental Protection Agency (EPA) does not regulate the disposal of batteries in small quantities”.  The advice for most “home users” in the US is:

There are a number of facilities that recycle Lithium Ion batteries. The Rechargeable Battery Recycling Corporation’s web site, www.rbrc.org, is an excellent source for finding a facility to handle these types of batteries.

Remember that before any type of disposal the batteries should be discharged completely. Tape the contacts with electrical tape and package so as to prevent contacts accidentally coming together at any time. These batteries can be incinerated if you have a large quantity and they will need to be packaged as lithium ion batteries. Incineration must be performed by an approved and permitted waste treatment facility that handles lithium ion batteries. If you are not sure if your waste facility can handle lithium ion batteries, contact them and verify if they are permitted or not.

For home disposal, many stores offer free recycling of rechargeable batteries. If no outlet is available in your area, it is safe to dispose of these batteries in your regular trash. As always, check with your local laws to make sure that this is acceptable.

And this information, from Call2Recycle:  Find a collection site near you or call toll-free 877.2.RECYCLE.