Without knowing the details, would vanilla Tor suffice? The ISP (who is the one being mandated to retain the data) will only know that you are contacting the entry relay, and the rest of the communication should be encrypted between you and the entry relay. I would guess that then every log in the ISP's log would say "Visited random tor node in iceland".
As for circumventing location gathering, when your mobile phone connects to cell towers, I'd be keen to hear about proposals for getting around that.
