Replacement Motor Fuels Act of 1985

Replacement Motor Fuels Act of 1985 - Directs the Secretary of Energy to establish a program to promote the development and use in the United States of replacement fuels produced in the United States. Requires the program to be designed to promote the replacement of gasoline as a motor fuel with a motor fuel containing the maximum percentage of replacement fuel as is economically and technically feasible.

Directs the Secretary, in consultation with heads of appropriate agencies and departments, to determine: (1) the most suitable raw materials for the production in the United States of replacement fuels; (2) the nature of the replacement motor fuel distribution systems and certain production processes necessary for the rapid development of a replacement motor fuel industry in the United States; (3) the technical and economic feasibility of including liquids extracted from oil shale and coal as part of the replacement fuels program; and (4) the technical and economic feasibility of producing in the United States by 1990 sufficient replacement fuels to replace 20 percent of the projected consumption of gasoline for 1990. Directs the Secretary to prescribe a substitute percentage goal if 20 percent is inappropriate. Directs the Secretary to establish production goals for the optimal production of replacement fuel in the United States in each of the calendar years 1987 through 1993. Sets forth factors the Secretary shall take into account in establishing such goals. Requires the Secretary to report to the Congress on such goals within 180 days of enactment of this Act.

Requires that a specified minimum percentage of the total quantity of gasoline and replacement fuel sold in commerce during any year by any refiner must be replacement fuel produced in the United States. Sets forth penalties for violation of such minimum percentage.

Authorizes appropriations for FY 1986 for preparing the development and production goals.