Border Smog Reduction Act of 1998

Border Smog Reduction Act of 1998 - Amends the Clean Air Act to prohibit noncommercial motor vehicles registered in a foreign country and operated by U.S. citizens, aliens who are permanent residents, or holders of employment or educational visas from entering a Serious ozone nonattainment area from a foreign country bordering the United States and contiguous to such area more than twice in a single calendar-month period if State law has requirements for the inspection and maintenance of such vehicles in such an area. Makes such prohibition inapplicable to operators who present documentation at the border entry point establishing the vehicle's compliance with such requirements.

Authorizes civil penalties to be imposed for violation of such prohibition. Makes such prohibition inapplicable in States which elect to be exempt. Makes such prohibition inapplicable in a State and authorizes the President to implement an alternative approach if: (1) a State Governor submits a description of an alternative approach to facilitate compliance by foreign-registered vehicles with inspection and maintenance requirements that are related to air pollutant emissions, that are in effect under the implementation plan in the area, and that apply to vehicles of the same types and model years as the foreign-registered vehicles; and (2) the President approves such approach.

Requires the Comptroller General to study and report to specified congressional committees on a comparison of the potential impact of this Act on air quality in ozone nonattainment areas with the impact in those areas of the increase in vehicles engaged in commerce operating in the United States and registered in, or operated from, Mexico, as a result of the implementation of the North American Free Trade Agreement.