Fuel Economy Reform Act - Amends federal transportation law to: (1) revise the definition of automobile to require including all automobiles up to 10,000 pounds (currently, not all automobiles up to 10,000 pounds are required to be included in the definition); and (2) continue applying the current minimum corporate average fuel economy (CAFE) standards for non-passenger and passenger automobiles to automobiles manufactured through model year 2011, but, for passenger automobiles, adds an increase of four percent per year in such standard for model years 2009 through 2011.
Requires an average fuel economy standard of 27.5 miles per gallon for all automobiles manufactured by all manufacturers for model year 2012, with an increase of four percent in the average fuel economy from the level for the prior model year for model year 2013 and beyond.
Requires the average fuel economy standard in a model year for a manufacturer's domestic and foreign fleetwide passenger automobiles under calculation of average fuel economy provisions to be at least 92% of the average fuel economy projected by the Secretary for the combined domestic and foreign fleets manufactured by all manufacturers in that model year.
Permits lower fuel economy standards if the minimum standards: (1) are technologically unachievable; (2) materially reduce auto safety; or (3) are not cost effective.
Allows, with a specified exception, the selling of credits between manufacturers.
Amends the Internal Revenue Code to: (1) terminate the limitation on the number of new qualified hybrid and advanced lean burn technology vehicles eligible for the alternative motor vehicle credit; and (2) allow an advanced technology motor vehicles manufacturing credit.