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The Texas Department of Transportation (TxDOT) began using an emulsified diesel fuel as an emissions control measure in July 2002. They initiated a study of the effectiveness of this fuel in comparison to conventional diesel fuel for TxDOT's Houston District operations and included the fleet operated by the Associated General Contractors (AGC) in the Houston area. Cost-effectiveness analyses, including the incremental cost per ton of NOx removed, were performed. NOx removal was the focus of this study because Houston is an ozone nonattainment area, and NOx is believed to be the limiting factor in ozone formation in the Houston area. The cost factors accounted for in the cost-effectiveness analyses included the incremental cost of the fuel (including an available rebate from the State of Texas), the cost of refueling more often, implementation costs, productivity costs, maintenance costs, and various costs associated with the tendency of the emulsion to separate.