Automobile Fuel Economy Act

Automobile Fuel Economy Act - Declares it the purpose of this Act to stimulate the production of more fuel efficient automobiles and to provide incentives to American consumers to buy such products.

Imposes a tax on every passenger automobile sold by the manufacturer which fails to meet specified fuel efficiency rates. Specifies the rate of such tax. Provides that such tax shall become effective on September 1, 1976.

Defines the terms used in the Act. Makes technical and conforming amendents.

Directs the Secretary of the Treasury to pay to each individual who, after September 1, 1976 and, on or before August 30, 1982, purchases a new fuel efficient passenger automobile, an amount, determined by the fuel efficiency rate of such automobile.

Directs the Administrator of the Environmental Protection Agency to establish test procedures to determine the fuel efficiency rates of passenger automobiles sold within the United States.

Requires the label affixed to automobiles to include the fuel efficiency rate and the tax imposed by this Act.

Prohibits the adjusting of passenger automobiles if such adjustment would lower the fuel efficiency rate. Imposes a civil penalty of not more than $1000 for such violation.

Establishes, within the Treasury of the United States, an Energy Research Trust Fund. Authorizes appropriations to the Trust Fund of the excess of the amount of this Act over the amount paid to individuals purchasing fuel efficient automobiles, and authorizes to be appropriated such additional sums as may be necessary to carry out the purposes of the Act. Directs that out of such Fund $500,000 annually shall be made available to the Council on Environmental Quality and $1,000,000 annually shall be made available to the Water Resources Council.