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.

SECTION 1. ENERGY SECURITY FUND AND ALTERNATIVE FUEL GRANT PROGRAM.

    (a) Establishment of Fund.--
            (1) In general.--There is established in the Treasury a 
        fund, to be known as the ``Energy Security Fund'' (referred to 
        in this section as the ``Fund''), consisting of--
                    (A) amounts transferred to the Fund under paragraph 
                (2); and
                    (B) amounts credited to the Fund under paragraph 
                (3)(C).
            (2) Transfers to fund.--For fiscal year 2008 and each 
        fiscal year thereafter, the Secretary of the Treasury, subject 
        to the availability of appropriations, shall transfer to the 
        Fund an amount determined by the Secretary of the Treasury to 
        be equal to 50 percent of the total amount deposited in the 
        general fund of the Treasury during the preceding fiscal year 
        from fines, penalties, and other funds obtained through 
        enforcement actions conducted pursuant to section 32912 of 
        title 49, United States Code (including funds obtained under 
        consent decrees).
            (3) Investment of amounts.--
                    (A) In general.--The Secretary of the Treasury 
                shall invest in interest-bearing obligations of the 
                United States such portion of the Fund as is not, in 
                the judgment of the Secretary of the Treasury, required 
                to meet current withdrawals.
                    (B) Sale of obligations.--Any obligation acquired 
                by the Fund may be sold by the Secretary of the 
                Treasury at the market price.
                    (C) Credits to fund.--The interest on, and the 
                proceeds from the sale or redemption of, any 
                obligations held in the Fund shall be credited to, and 
                form a part of, the Fund in accordance with section 
                9602 of the Internal Revenue Code of 1986.
            (4) Use of amounts in fund.--Amounts in the Fund shall be 
        made available to the Secretary of Energy, subject to the 
        availability of appropriations, to carry out the grant program 
        under subsection (b).
    (b) Alternative Fuels Grant Program.--
            (1) In general.--Not later than 90 days after the date of 
        enactment of this Act, the Secretary of Energy, acting through 
        the Clean Cities Program of the Department of Energy, shall 
        establish and carry out a program under which the Secretary 
        shall provide grants to expand the availability to consumers of 
        alternative fuels (as defined in section 32901(a) of title 49, 
        United States Code).
            (2) Eligibility.--
                    (A) In general.--Except as provided in subparagraph 
                (B), any entity that is eligible to receive assistance 
                under the Clean Cities Program shall be eligible to 
                receive a grant under this subsection.
                    (B) Exceptions.--
                            (i) Certain oil companies.--A large, 
                        vertically-integrated oil company shall not be 
                        eligible to receive a grant under this 
                        subsection.
                            (ii) Prohibition of dual benefits.--An 
                        entity that receives any other Federal funds 
                        for the construction or expansion of 
                        alternative refueling infrastructure shall not 
                        be eligible to receive a grant under this 
                        subsection for the construction or expansion of 
                        the same alternative refueling infrastructure.
                    (C) Ensuring compliance.--Not later than 30 days 
                after the date of enactment of this Act, the Secretary 
                of Energy shall promulgate regulations to ensure that, 
                before receiving a grant under this subsection, an 
                eligible entity meets applicable standards relating to 
                the installation, construction, and expansion of 
                infrastructure necessary to increase the availability 
                to consumers of alternative fuels (as defined in 
                section 32901(a) of title 49, United States Code).
            (3) Maximum amount.--
                    (A) Grants.--The amount of a grant provided under 
                this subsection shall not exceed $30,000.
                    (B) Amount per station.--An eligible entity shall 
                receive not more than $90,000 under this subsection for 
                any station of the eligible entity during a fiscal 
                year.
            (4) Use of funds.--
                    (A) In general.--A grant provided under this 
                subsection shall be used for the construction or 
                expansion of alternative fueling infrastructure.
                    (B) Administrative expenses.--Not more than 3 
                percent of the amount of a grant provided under this 
                subsection shall be used for administrative expenses.

Summary: Establishes the Energy Security Fund, to be funded by proceeds deposited in the general fund of the Treasury from fines, penalties, and other funds obtained through enforcement actions for violations of automobile fuel economy standards.

Directs the Secretary of Energy, acting through the Clean Cities Program of the Department of Energy, to establish a program of grants to expand the availability of alternative fuels to consumers. Makes amounts in the Fund available to the Secretary for such grants.

Declares eligible for assistance any entity that is eligible for assistance under the Clean Cities Program.

Bars from such assistance: (1) large, vertically-integrated oil companies; and (2) any entity that receives other federal funds for the construction or expansion of the same alternative refueling infrastructure.

Sets forth a maximum ceiling for grants and for stations.

Limits the use of such funds to construction or expansion of alternative fueling infrastructure.