To provide grants from moneys collected from violations of the corporate average fuel economy program to be used to expand infrastructure necessary to increase the availability of alternative fuels.

Establishes in the Treasury a Fuel Economy Fund to be: (1) funded by fines, penalties, and other moneys obtained through certain enforcement actions (subject to the availability of funds provided in advance in appropriations Acts); and (2) used by the Secretary of Energy to implement a grant program for the construction or expansion of infrastructure necessary to increase the availability to consumers of alternative fuels.

Declares eligible for such grant any entity also eligible for assistance through the Clean Cities Program of the Department of Energy.

Declares ineligible for such grant any large, vertically integrated oil company.

Prohibits any grant award totaling more than $60,000 in any fiscal year.