American Fuels Act of 2007

American Fuels Act of 2007 - Establishes in the Executive Office of the President the Office of Energy Security to oversee all federal energy security programs, including coordination of all federal agency efforts to assist the United States in achieving full energy independence.

Amends the Internal Revenue Code to provide: (1) a tax credit, against both ordinary and alternative minimum tax, for production of qualified flexible fuel motor vehicles; and (2) an alternative fuel retail sales credit.

Amends the Clayton Act and the Petroleum Marketing Practices Act to prohibit restrictions on the installation of alternative fuel pumps within fuel franchise documents.

Amends the Clean Air Act to direct the Administrator of the Environmental Protection Agency to promulgate regulations to ensure that diesel sold or introduced into commerce in the United States, on an annual average basis, contains specified percentages of alternative diesel fuel.

Sets forth a credit program for the generation of diesel fuel.

Amends the Internal Revenue Code to allow an excise tax credit for: (1) production of cellulosic biomass ethanol; and (2) qualifying ethanol blending and processing equipment.

Amends the Energy Policy Act of 1992 (EPA) to treat a medium or heavy duty hybrid vehicle as an alternative fueled vehicle.

Sets a deadline by which: (1) any federal property with at least one fuel refueling station must include at least one alternative fuel refueling station; and (2) any alternative fuel refueling station on federally-owned property must permit full public access for the purpose of refueling using alternative fuel.

Amends federal transportation law to require that any bus purchased with funds from the Mass Transit Account of the Highway Trust Fund to be a clean fuel bus.

Amends armed forces law governing energy-related procurement to direct the Secretary of Defense to develop a strategy to use fuel produced from domestically produced fuel using starch, sugar, cellulosic biomass, plant or animal oils, or thermal chemical conversion, thermal depolymerization, or thermal conversion processes (covered fuel). Authorizes the Secretary to enter into contracts to: (1) develop and operate covered fuel production facilities; and (2) provide for construction or capital modification of such facilities.

Amends the EPA to include among alternative fueled vehicles any vehicle propelled by electric drive transportation, engine dominant hybrid electric, or plug-in hybrid technology.