We examine the environmental impacts, health-related economic benefits, and distributional effects of new US regulations to reduce smog from power plants, namely: the Cross-State Air Pollution Rule. Using integrated assessment methods, linking atmospheric and economic models, we assess the magnitude of economy-wide effects and distributional consequences that are not captured by traditional regulatory impact assessment methods. We study the Cross-State Air Pollution Rule, a modified allowance trading scheme that caps emissions of nitrogen oxides and sulfur dioxide from power plants in the eastern United States and thus reduces ozone and particulate matter pollution. We use results from the regulatory regional air quality model, CAMx (the Comprehensive Air Quality Model with extensions), and epidemiologic studies in BenMAP (Environmental Benefits Mapping and Analysis Program), to quantify differences in morbidities and mortalities due to this policy. To assess the economy-wide and distributional consequences of these health impacts, we apply a recently developed economic and policy model, the US Regional Energy and Environmental Policy Model (USREP), a multi-region, multi-sector, multi-household, recursive dynamic computable general equilibrium economic model of the US that provides a detailed representation of the energy sector, and the ability to represent energy and environmental policies. We add to USREP a representation of air pollution impacts, including the estimation and valuation of health outcomes and their effects on health services, welfare, and factor markets. We find that the economic welfare benefits of the Rule are underestimated by traditional methods, which omit economy-wide impacts. We also quantify the distribution of benefits, which have varying effects across US regions, income groups, and pollutants, and we identify factors influencing this distribution, including the geographic variation of pollution and population as well as underlying economic conditions.