A bill to establish a replacement fuels and alternative fuels program, and for other purposes.

Directs the Secretary of Energy to establish a replacement fuels development program which: (1) promotes the replacement of gasoline as a motor fuel with alternative motor fuels; (2) ensures the availability of replacement and alternative motor fuels; and (3) will have the greatest impact in improving air quality in urban areas, along transportation corridors, and nationwide. Prescribes program guidelines.

Requires the Secretary to establish optimal replacement and alternative motor fuel production goals for 1996 and 1997 and to report to the Congress about program status. Prescribes minimum percentages of domestically produced replacement fuel to be sold in specified calendar years. Sets a deadline by which the Secretary must prescribe the minimum percentage of domestically produced replacement and alternative fuel which must be contained in the total annual gasoline sales by refiners for motor fuel use in certain years.

Requires refiners and manufacturers to report annually to the Secretary regarding the amount of domestically produced replacement and alternative fuel sold. Requires the Secretary to promulgate regulations by a specified deadline regarding the exchange of marketable credits among: (1) refiners; (2) manufacturers of replacement fuels; and (3) distributors of alternative motor fuels sold in commerce for transportation purposes.

Amends the Motor Vehicle Information and Cost Savings Act with respect to average fuel economy standards to require the Secretary to not consider the fuel economy of alcohol powered automobiles or natural gas powered automobiles, and to consider dual energy automobiles and natural gas dual energy automobiles operated on gasolines and diesel fuel, to the extent that alternative motor fuel sales indicate that such fuels are being used to displace the use of gasoline and diesel fuel as a transportation fuel.

Establishes civil penalties for violations of this Act. Authorizes appropriations. Requires the Secretary to issue regulations requiring gasoline retailers to have replacement motor fuels and nonpetroleum motor fuels to sell for the transportation needs of consumers.

Requires the Administrator of the Environmental Protection Agency to report to the Congress on the environmental impact potential of developing replacement fuels and nonpetroleum motor fuels.