Biofuels Air Quality Act

Biofuels Air Quality Act - Amends Federal highway provisions (with respect to the congestion mitigation and air quality improvement program) to direct the Secretary of Transportation to consider a proposed project's effects on the reduction of greenhouse gases and sulfur emissions.

Allows States receiving minimum apportionments to use funds under the program for alternative fuel projects that reduce such gases and emissions.

Modifies provisions regarding alternative fuel projects to expand coverage to include: (1) public and nonprofit (currently, limited to privately owned) vehicles or vehicle fleets; and (2) costs of biodiesel fuel, blended at a ratio of 20 percent with conventional diesel fuel .