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Stakeholder Analysis &Market Based Clean Air Houston-Galveston Region EXECUTIVE SUMMARY: The purpose of this report is to present a stakeholder analysis regarding current clean air initiatives in the Houston-Galveston eight county region. It is not an exhaustive report on clean air initiatives, but rather, an overview of policies affecting diesel engines and industries emitting nitrogen oxide (NOx) and particulate matter. This report will discuss the following: 1) Health, social, and economic costs due to NOx, ozone, and PM emissions and 2) Current and potential market-based air pollution policies. The above-mentioned points will be discussed in the context of several stakeholders in the region including the Environmental Protection Agency (EPA), the Texas Natural Resource Conservation Commission (TNRCC), the City of Houston, regional industries, and individual consumers. The Houston-Galveston region, comprised of eight counties, is currently in non-attainment for ozone under the Clean Air Act (CAA). Because of EPA rules, the area is required to reach attainment in ozone levels by November 15, 2007. However, several challenges prevent the area from reaching attainment status. To comply with federal standards, the TNRCC has