S.298 - Federal Government - A bill to provide incentives for renewable energy production, to increase fuel economy standards for automobiles, and to provide tax incentives for renewable energy production.

Renewable Energy, Fuel Reduction, and Economic Stabilization and Enhancement Act of 2007 or REFRESH Act - Directs the Secretary of Energy to make grants to: (1) promote geothermal power development; (2) develop all forms of ocean energy; and (3) assist in the development of new technology for the production of plug-in hybrid electric-combustion engine vehicles.

Directs the Administrator of the Environmental Protection Agency (EPA), in calculating average fuel economy, to use the procedures described in the final rule relating to fuel economy labeling published in the Federal Register on December 27, 2006.

Requires the Administrator of the National Highway Traffic Safety Administration (NHTSA) to study anticipated economic impacts and fuel savings from a requirement that all vehicles manufactured in the United States with a gross vehicle weight of not less than 10,000 pounds meet specific average fuel economy standards.

Requires all passenger automobile tires sold in the United States to meet low rolling resistance standards prescribed by the NHTSA Administrator.

Authorizes the Secretary to award grants to states to develop telecommuting and flexible work scheduling incentives to reduce traffic congestion in urban areas.

Amends the Internal Revenue Code to: (1) include wave, current, tidal, and ocean thermal resources as qualified energy resources under the renewable energy tax credit; (2) extend through 2012 the qualified hybrid motor vehicle credit for plug-in hybrids; and (3) eliminate the limit on new qualified hybrid and advanced lean burn technology vehicles eligible for the full alternative motor vehicle tax credit.