Transforming Energy Now Act of 2006 - Amends the Clean Air Act to establish a 10% minimum renewable fuel requirement for motor vehicle fuel sold in the United States after 2015.
Amends the Internal Revenue Code to increase from 30 to 50% the tax credit rate for alternative fuel vehicle refueling property costs (service stations capable of dispensing alternative fuels to retail consumers).
Establishes in the Treasury the Alternative Fueling Infrastructure Trust Fund to provide grants to increase the number of retail service stations dispensing alternative transportation fuels. Directs the Secretary of Transportation to transfer 90% of civil penalties for noncompliance with automobile fuel economy standards to the Trust Fund to finance such grant program.
Amends the Consolidated Farm and Rural Development Act to provide low-interest loans to build service stations which dispense E-85 (85% ethanol content) fuel to retail consumers.