Acid Rain/Energy Security Initiative Act of 1988

Acid Rain/Energy Security Initiative Act of 1988 - Amends the Clean Air Act to require States to achieve specified reductions of sulfur dioxide emissions from fossil fuel fired electric utility generating units by 1993, 1998, and 2003. Directs the Administrator of the Environmental Protection Agency (EPA) to promulgate standards, within one year of this Act's enactment, for existing major stationary sources of nitrogen oxides so as to assure a 23 percent reduction in annual emissions of nitrogen oxides from the level of emissions from such sources in 1980. Requires States to impose such standards nitrogen oxide emissions on all major stationary sources by 1998. Directs States to adopt enforceable measures: (1) within 18 months of this Act's enactment, to achieve the reductions in sulfur dioxide and nitrogen oxide emissions required by 1998; and (2) by 1995, to achieve the reduction of sulfur dioxide emissions required by 2003. Requires that such measures include continuous emission monitoring by the source and by enforcement agencies. Requires that the owner or operator of each stationary source subject to such emission limitations certify to the State, within three years of this Acts enactment, the means by which the source intends to comply with emission limitations. Sets time limits by which sources that intend to adopt certain emission reduction measures must enter into binding contractual commitments for the implementation of such measures.

Sets emission limitations for States which fail to make an approved adoption of enforceable emission reduction measures or to enforce such measures. Directs the Administrator to promulgate revised standards, by 1991, for emissions of nitrogen oxides from fossil fuel fired steam generating units and from large stationary diesel and turbine engines. Sets forth acceptable enforceable emission reduction programs and methods.

Authorizes the Administrator to make grants to States for State use in making grants or revolving loans which cover up to 50 percent of the capital costs of acquiring, constructing, or installing technological systems of continuous emission reduction to the owners or operators of major stationary sources that are subject to this Act's emission limitations. Establishes an Acid Deposition Reduction Assistance Account from which such grants shall be made.

Requires the Secretary of Energy to promote the rapid deployment of existing clean coal technologies and seek establishment of a bilateral group of diplomatic and environmental management officials from the United States and Canada to hold consultations and advise the directors of each nation's environmental program regarding transboundary air pollution. Directs the Administrator and the Secretary of Energy to provide grants to electricity generating facilities for the deployment of clean coal technologies. Requires that such grant projects: (1) provide experience regarding such technology which is applicable at commercial scale; (2) utilize technology appropriate for retrofit on a significant number of existing coal-fired sources of sulfur dioxide and nitrogen oxide emissions; (3) contribute to a reduction of the transboundary movement of air pollutants which are precurors of acid deposition; and (4) significantly reduce sulfur dioxide and nitrogen oxide emissions at a cost which is no greater than the cost of achieving comparable reductions with conventional technology. Sets Federal funding at no more than 50 percent of the cost of such projects. Requires the Administrator and the Secretary of Energy to establish a Clean Coal Technologies Advisory Committee, within 90 days of this Act's enactment, to advise the Secretary of Energy or the Administrator on policy matters relating to the control of emissions which may be the precursors of acid deposition and the selection of clean coal technology grant projects. Authorizes appropriations for this Act's clean coal technology activities for FY 1989 through 1998.

Provides for the increase of the Strategic Petroleum Reserve to one billion barrels of petroleum products. Requires each importer of petroleum products to place in the Strategic Petroleum Reserve an amount of petroleum products equal to two percent of the amount imported by such person during each fiscal year. Requires that funds appropriated for the acquisition of petroleum products for such Reserve be deposited in the Acid Deposition Reduction Assistance Account along with appropriations for this Act's clean coal technology activities.