To increase the average fuel economy of light-duty vehicles in the Federal fleet.

Amends federal transportation law to increase the average fuel economy standard for light-duty passenger automobiles of the Federal fleet which the President is required to prescribe.

Increases the standard from a minimum of 18 miles per gallon to: (1) at least 27.5 miles per gallon for the year beginning on January 1, 2009; and (2) beginning January 1, 2010, and each year thereafter, at least two miles per gallon above the previous year's average fuel economy, until a requirement of 40 miles per gallon is reached.