ALEC Documents State-Specific Impacts of EPA Regulations

Published April 26, 2012

This week the American Legislative Exchange Council (“ALEC”) released a new report “Economy Derailed: State-by-State Impacts of the EPA Regulatory Train Wreck” which details the nature in which new EPA regulations are effecting development in the states. ALEC’s study builds on last year’s report by providing additional resources for state legislators, documenting greater opposition to EPA’s regulatory agenda, and providing place-based assessments of the economic impact on given states.

“Given all of this EPA regulatory activity, it is essential for concerned state legislators to get involved and stop the economic derailment,” the report notes. 

Illinois ranks first as the state most impacted by the EPA with 8,000 MW of electricity capacity projected to be retired as a result, at least in part, of burdensome regulations. That represents enough energy to power six million homes. Electricity rates are projected to increase from 7.8 to 18 percent, which would in turn stunt growth and decrease manufacturing output by $1.8 billion and state and local tax revenue by $2.1 billion by 2015.

“First, any costs incurred by utilities, refiners, manufacturers and other large emitters to comply with GHG regulatory requirements will be passed on to the consumers of those products, including farmers and ranchers … As a result, our nation’s farmers and ranchers will have higher input costs, namely fuel and energy costs, to grow food, fiber and fuel for our nation and the world,” said Philip Nelson, President of the Illinois Farm Bureau, according to the report.

Though Illinois is hit the hardest, their position is not unique as ALEC details how these policies will have negative impacts across the states. For the full study and more information on the project, visit