Alternative Diesel Standard Act of 2006

Alternative Diesel Standard Act of 2006 - Amends the Clean Air Act to direct the Administrator of the Environmental Protection Agency (EPA) to promulgate regulations to ensure that diesel sold or introduced into commerce in the United States, on an annual average basis, contains the applicable volume of alternative diesel fuel (increasing from 250 million gallons in 2008 to 2 billion gallons in 2015 and determined per a prescribed formula thereafter). Requires the regulations to: (1) contain compliance provisions applicable to refineries, blenders, distributors, and importers; (2) not restrict areas in which alternative diesel fuel may be used; and (3) not impose any per-gallon obligation for the use of alternative diesel fuel. Requires alternative diesel fuel to constitute 0.6% of diesel dispensed in 2008 if the Administrator fails to promulgate such regulations. Requires EPA to determine and publish the alternative diesel fuel obligation as a percentage of diesel each year for 2008-2015.

Requires such regulations to provide for the generation of an appropriate amount of transferable credits by any person that refines, blends, or imports diesel that contains a quantity of alternative diesel fuel greater than required. Authorizes the Administrator to waive alternative diesel fuel requirements on receipt of a state petition by reducing the quantity of alternative diesel fuel required based on a determination that: (1) implementation of the requirement would severely harm the economy or environment of a state, a region, or the United States; or (2) there is inadequate domestic supply of alternative diesel fuel.