CORDY, J.
In this case, we are asked to decide whether the Department of Environmental Protection (department) has fulfilled its statutory mandate under G. L. c. 21N, § 3 (d) (§ 3 [d]), which provides that the department "shall promulgate regulations establishing a desired level of declining annual aggregate emission limits for sources or categories of sources that emit greenhouse gas emissions." By the terms of the enabling legislation, the Global Warming Solutions Act, St. 2008, c. 298 (act), these regulations were to be issued by January 1, 2012, to take effect on January 1, 2013, and to expire on December 31, 2020. See St. 2008, c. 298, § 16. The department failed to take action by the statutory deadline, and in November, 2012, a group of residents submitted a rulemaking petition to the department seeking the issuance of regulations pursuant to § 3 (d) to limit greenhouse gas emissions
The department held a public hearing on June 13, 2013, to consider the petition. Shortly thereafter, it issued a written statement addressing the petitioners' concerns and concluding that it had complied with the requirements of the act, including those set forth in § 3 (d). The statement also referenced specific regulatory schemes that the department had established to reduce greenhouse gases, including prescribed limits on sulfur hexafluoride leaks, a regional cap and trade market to manage carbon dioxide emissions known as the Regional Greenhouse Gas Initiative (RGGI), and a low emission vehicle (LEV) program aimed at
In August, 2014, the plaintiffs filed a complaint in the Superior Court seeking declaratory relief, or in the alternative, a writ of mandamus, on the grounds that the department had failed to fulfil its statutory mandate under § 3 (d). The parties agreed that their respective submissions to the court could be treated as cross-motions for judgment on the pleadings under Mass. R. Civ. P. 12 (c), 365 Mass. 754 (1974). The department again took the position that the sulfur hexafluoride, RGGI, and LEV regulations satisfy the mandate of § 3 (d). Following a hearing in March, 2015, the judge dismissed the plaintiffs' mandamus claim and entered judgment in the department's favor based on his findings that the three regulatory initiatives cited by the department substantially complied with the requirements of § 3 (d). The plaintiffs timely appealed, and we granted direct appellate review to determine whether the department has met its obligations under § 3 (d).
For the reasons discussed herein, we conclude that the unambiguous language of § 3 (d) requires the department to promulgate regulations that establish volumetric limits on multiple greenhouse gas emissions sources, expressed in carbon dioxide equivalents, and that such limits must decline on an annual basis. We further conclude that the sulfur hexafluoride, RGGI, and LEV regulations fall short of complying with the requirements of § 3 (d), because they fail to ensure the type of mass-based reductions in greenhouse gases across the sources or categories of sources regulated under each of the programs, as intended by the Legislature. Accordingly, we reverse the judgment of the Superior Court.
Discussion. This case was decided in the Superior Court on the parties' cross motions for judgment on the pleadings. See Mass. R. Civ. P. 12 (c). For the purposes of this appeal, we assume to be true the allegations in the plaintiffs' complaint and the exhibits attached thereto. See Sliney v. Previte, 473 Mass. 283, 284 (2015).
1. Statutory framework. We begin with an overview of § 6 of the act, which enacted the Climate Protection and Green Economy Act, G. L. c. 21N (statute). The act was developed against the backdrop of an emerging consensus shared by a majority of the scientific community that climate change is attributable to increased emissions, as well as perceptions in the Commonwealth that national and international efforts to reduce those emissions are inadequate. See Executive Office of Energy & Environmental Affairs, Massachusetts Clean Energy and Climate Plan for 2020 at 8 (Dec. 29, 2010); Executive Office of Energy & Environmental Affairs, Determination of Greenhouse Gas Emission Limit for 2020 at 1 (Dec. 28, 2010) (Secretary's Determination). See also Massachusetts v. Environmental Protection Agency, 549 U.S. 497, 505 (2007) (petition by Massachusetts, with other States, local governments, and private organizations, arguing Environmental Protection Agency abdicated responsibility under Clean Air Act to regulate emissions of four greenhouse gases, including carbon dioxide).
The same year that the act became law, the Legislature also enacted companion legislation concerning "Green Communities," St. 2008, c. 169; "Oceans," St. 2008, c. 114; "Clean Energy Biofuels," St. 2008, c. 206; and "Green Jobs," St. 2008, c. 307. "Each act addresses a separate but related piece of the clean energy economy." See Report of the Senate Committee on Global Warming and Climate Change, No Time to Waste, at 10 (Feb. 13, 2015). The act and its companion statutes provide policymakers with a broad array of tools, including "targeted and technology-specific policies[,] ... economy-wide and market-based mechanisms," and renewable energy portfolio standards and energy efficiency improvements, to advance a clean energy economy while reducing emissions and addressing the unique threats that climate change poses to the Commonwealth. See Massachusetts Clean Energy and Climate Plan for 2020, supra, Executive Summary at 7.
The act is one of the primary mechanisms for achieving reductions in emissions, and is the sole piece of legislation authorizing the establishment of legally binding limits on those emissions in the Commonwealth.
The act designates the Secretary of Energy and Environmental Affairs (secretary) and the department as the entities primarily responsible for implementing the act.
It is undisputed by the parties that the department met each of the statutory deadlines, except for the deadline for promulgating the § 3 (d) regulations. The department promulgated initial emission reporting regulations in December, 2008, see 310 Code Mass. Regs. § 7.71 (2013), and amended the reporting requirements of the regulations in June, 2009, to address reporting by sellers of retail electricity. See Progress Report at 18. In July, 2009, the department published a report establishing a 1990 baseline and projection of Statewide greenhouse gas emissions for a likely "business-as-usual" case to 2020. Id. In December, 2010, the secretary set a Statewide limit on greenhouse gas emissions of twenty-five per cent below the 1990 levels by 2020. Id. See Secretary's Determination at 1. At the same time, the secretary released the comprehensive Massachusetts Clean Energy and Climate Plan for 2020, discussed supra, in which he identified major sources of greenhouse gases that should be addressed as part of the plan to reduce emissions. See Progress Report at 18. The secretary's determination of the limit for 2020
Thus, to reach the twenty-five per cent reduction level by 2020, the Commonwealth would have to implement additional measures to achieve approximately seven per cent in further emissions reductions. The parties agree that these reductions need not be attributable solely to regulations passed pursuant to § 3 (d), but rather recognize that a variety of policies and programs, including actions taken under other statutory programs, such as the Green Communities Act, G. L. c. 7, § 9A, may produce measurable reductions. Secretary's Determination at 5.
2. Statutory language. General Laws c. 21N, § 3 (d), states that "[t]he department shall promulgate regulations establishing a desired level of declining annual aggregate emission limits for sources or categories of sources that emit greenhouse gas emissions." The plaintiffs interpret the provision to require the promulgation of regulations that address multiple sources or categories of sources of emissions, impose a limit on emissions that may be released, limit the aggregate emissions released, set emission limits for each year, and set limits that decline on an annual basis. They also claim that the regulatory initiatives cited by the department fail to comply with the requirements of § 3 (d). The department counters that § 3 (d) requires it only to establish aspirational targets, or in the alternative, that it has substantially complied with the mandate of § 3 (d) through its promulgation of the sulfur hexafluoride regulations and its amendments to the
We review de novo questions concerning the meaning of an agency's enabling statute. See Commerce Ins. Co. v. Commissioner of Ins., 447 Mass. 478, 481 (2006). Where the words in a statute are "clear and unambiguous," we give them effect as "the Legislature's expressed intent." Providence & Worcester R.R. v. Energy Facilities Siting Board, 453 Mass. 135, 141 (2009). If we conclude, however, that the statutory language is "sufficiently ambiguous to support multiple, rational interpretations," Biogen IDEC MA, Inc. v. Treasurer & Receiver Gen., 454 Mass. 174, 186 (2009), then "we look to the cause of its enactment, the mischief or imperfection to be remedied and the main object to be accomplished, to the end that the purpose of its framers may be effectuated" (citations and quotations omitted). Entergy Nuclear Generation Co. v. Department of Envt'l Protection, 459 Mass. 319, 329 (2011).
The department has "a wide range of discretion in establishing the parameters of its authority pursuant to the enabling legislation." Moot v. Department of Envt'l Protection, 448 Mass. 340, 346 (2007), S.C., 456 Mass. 309 (2010), quoting Levy v. Board of Registration & Discipline in Med., 378 Mass. 519, 525 (1979). Nonetheless, statutory interpretation is ultimately the duty of the courts, and for that reason, the "principle of according weight to an agency's discretion ... is one of deference, not abdication, and this court will not hesitate to overrule agency interpretations of statutes or rules when those interpretations are arbitrary or unreasonable" (citations and quotations omitted). Moot, supra at 346.
Moreover, our interpretation of statutes is not restricted to determining only their "simple, literal or strict verbal meaning" but also considers their "development, their progression through the legislative body, the history of the times, prior legislation, contemporary customs and conditions and the system of positive law of which they are part...." Oxford v. Oxford Water Co., 391 Mass. 581, 588 (1984), quoting Commonwealth v. Welosky, 276 Mass. 398, 401 (1931), cert. denied, 284 U.S. 684 (1932).
a. Limits versus targets. Because the question whether § 3 (d) requires the department to promulgate regulations establishing binding limits on emissions or merely aspirational targets is central to our determination of whether the agency has met its obligations under the statute, we begin our construction of the provision with the meaning of the word "emission limits" as it appears in § 3 (d). The plaintiffs contend that the phrase "emission limits" requires the department to issue regulations that establish binding caps on sources or categories of sources of emissions; the department argues that the phrase, as used in § 3 (d), requires it only to promulgate regulations that establish aspirational goals or unenforceable targets because the phrase is modified by the phrase "desired level."
With respect to this point, we are guided by two well-established principles of statutory construction. First, where the same word is used in different parts of a statute, it "should be given the same meaning ... barring some plain contrary indication." CFM Buckley/North LLC v. Assessors of Greenfield, 453 Mass. 404, 408 (2009), quoting Connolly v. Division of Pub. Employee Retirement Admin., 415 Mass. 800, 802-803 (1993). Second, "[a]ll the words of a statute are to be given their ordinary and usual meaning" and we construe "each clause or phrase ... with reference to every other clause or phrase without giving undue emphasis to any one group of words, so that, if reasonably possible, all parts shall be construed as consistent with each other so as to form a harmonious enactment effectual to accomplish its manifest purpose." Worcester v. College Hill Props., LLC, 465 Mass. 134, 139 (2013), quoting Selectmen of Topsfield v. State Racing Comm'n, 324 Mass. 309, 312-313 (1949).
Applying these canons of interpretation, the parties agree that the emissions reduction levels established by G. L. c. 21N, §§ 3 (b) and 4 (a), are legally binding "[g]reenhouse gas emission limits" as defined in § 1.
The context in which the word "limits" appears also is instructive to our determination of whether an actual cap on emissions is required by § 3 (d). The statute directs the department to establish "desired level[s] of ... emissions limits" through the promulgation of regulations. G. L. c. 21N, § 3 (d). A regulation, by its definition, is not aspirational. See Black's Law Dictionary, 1475 (10th ed. 2014) (defining "regulation" as "[c]ontrol over something by rule or restriction..."). It is doubtful that the Legislature would require the promulgation of regulations had it only meant for the department to set aspirational targets, and if that was its intention, it could have used the word "target" or "goal."
Second, giving the word "desired" its ordinary meaning, we reject the department's position that the Legislature's use of the word evinces its intent for the department to establish target emissions levels rather than legally binding limits as inconsistent with the manifest purpose of the statute. Although it is true that the word "desired" can mean "that is longed or hoped for," the term is also defined as "predetermined to be suitable or satisfactory; prescribed as requisite." Webster's Third New International Dictionary 612 (2002). Taking this definition together with the act's central aim of reducing emissions in the Commonwealth, as well as the language of G. L. c. 21N, §§ 3 and 4, it is apparent that the Legislature ascribed the latter meaning to the word "desired." This interpretation accounts for the fact that the Legislature, at the time it enacted the statute, knew only that the emissions limit for 2020 would be set between ten and twenty-five per cent below the 1990 emissions level. See G. L. c. 21N, §§ 3 (b), 4 (a). Thus, by using the word "desired" to modify "level," the Legislature intended for the department to establish emission limits by sources or categories of sources, and left it to the department to determine what those limits would need to be to achieve the compulsory reductions set by the secretary in accord with §§ 3 (b) and 4 (a).
The statutory deadline for promulgating regulations pursuant to § 3 (d) lends further support to our interpretation of the phrase "desired levels," especially in conjunction with the statutory timeline, which required the department to promulgate regulations after the creation of the greenhouse gas emissions registry, the determination of the limit for 2020, and the publication of the Secretary's plan for achieving the limit for 2020, all of which would need to be considered in determining both what sources of greenhouse gases to regulate, as well as what emissions limits would be required with respect to those sources to achieve the reduction limit for 2020.
b. Remaining language. We next examine the remaining language of § 3 (d) and what it means for the department to adopt "regulations establishing ... declining annual aggregate emission limits for sources or categories of sources that emit greenhouse gas emissions." G. L. c. 21N, § 3 (d).
The plaintiffs contend that the statute, by its terms, requires the department to promulgate regulations that address multiple sources or categories of sources of emissions, impose a limit on emissions that may be released, limit the aggregate emissions released from sources regulated by the department pursuant to § 3 (d), set emissions limits for each year and establish limits that decline on an annual basis. The department disagrees, and argues that § 3 (d) only addresses source-specific emissions and does not require the establishment of Statewide emission limits by source category, which would effectively limit the number of sources of greenhouse gases in the Commonwealth, and not just emissions from those sources. Although either approach might prove successful in reaching the Commonwealth's over-all reduction goal, our obligation is to determine which of these approaches the Legislature intended in enacting § 3 (d).
We begin by observing that the words "regulations," "emission limits," and "sources or categories of sources" appear in their plural form in § 3 (d). From this usage we may infer that the Legislature intended for the department to regulate multiple sources of greenhouse gas emissions. See Leopoldstadt, Inc. v. Commissioner of Div. of Health Care Fin. & Policy, 436 Mass. 80, 86-87 (2002) (court gives meaning to Legislature's affirmative use of singular or plural form). We therefore reject the department's argument that each of the three regulatory schemes individually satisfies the mandate of § 3 (d), as the plain language of the statute requires the regulation of multiple groups of sources. The central purpose of the act is to effect significant reductions in emissions in the Commonwealth, and that purpose would be frustrated if the department were to regulate emissions from only one group of sources or categories of sources. We therefore
We next consider the meaning of the phrase "declining annual aggregate emission limits for sources or categories of sources." The terms "emission limits" and "sources or categories of sources" derive from the definitional section of c. 21N. Because the term "aggregate" is not defined in the statute, however, we look to its ordinary meaning: "formed by the collection of units or particles into a body, mass, or amount: collective." Webster's Third New International Dictionary 41 (2002).
In this case, however, our interpretation hinges not on the literal meaning of the word aggregate, but on the word or phrase to which it applies. Put differently, the question is whether the plural usage of "aggregate emission limits" modifies sources to be regulated, and requires that the emission limits imposed on specified sources of emissions decline on an annual basis, or whether, as the plaintiffs posit, it obliges the department to establish annual Statewide caps on emissions in the years leading up to 2020, which would result in the establishment of a set of declining annual "aggregate emission limits."
Here, the plain language of the statute supports the former interpretation, as there is nothing in the statutory language to indicate that the department must regulate every source of emissions in the Commonwealth.
Thus, we conclude that the plain language of § 3 (d) requires the department to promulgate regulations that address multiple sources or categories of sources of emissions, impose a limit on emissions that may be released, limit the aggregate emissions released from each group of regulated sources or categories of sources, set emissions limits for each year, and set limits that decline on an annual basis. Moreover, by the design of the act, the department is well equipped to say what actual reductions in emissions sources and source categories can be achieved because it has already inventoried emissions from every source and source category of emissions in the Commonwealth pursuant to G. L. c. 21N, § 2.
Our interpretation of § 3 (d) appreciates that, although the department and the secretary have considerable expertise in addressing the challenges that climate change poses to the Commonwealth, it is ultimately for the Legislature to make fundamental policy decisions. The act makes plain that the Commonwealth must reduce emissions and, in doing so, may, in some instances, elevate environmental goals over other considerations. Thus, contrary to the department's assertions, the Legislature's endorsement of a variety of emission reduction strategies
3. Regulatory programs. Having concluded what § 3 (d) requires, we turn to the three regulatory initiatives cited by the department as satisfying the mandate of § 3 (d). We begin by noting that the department does not dispute that it missed the January 1, 2012, statutory deadline for promulgating regulations pursuant to § 3 (d). Moreover, based on our interpretation of § 3 (d) as requiring declining annual aggregate limits for regulated sources or categories of sources of emissions, it is apparent that the regulatory schemes on which the department relies in this case do not comport with the requirements of § 3 (d).
a. Sulfur hexafluoride regulations. Sulfur hexafluoride is a "greenhouse gas" within the meaning of the act.
The sulfur hexafluoride regulations create a scheme in which maximum annual rates of allowable leakage for GIS in the Commonwealth decrease on an annual basis. 310 Code Mass. Regs. § 7.72(1), (4). The department has established a calendar of decreasing rate limits, beginning with a 3.5 per cent leakage rate allowed in 2015, and ending with a 1.0 per cent leakage rate allowed in 2020. 310 Code Mass. Regs. § 7.72(5). Any GIS manufactured after 2015 must comply with the 2020 rate of 1.0. 310 Code Mass. Regs. § 7.72(4). The rates are calculated by dividing the total amount, in pounds, of sulfur hexafluoride gas leaked by a facility over the previous year by the total sulfur hexafluoride gas capacity of all GIS in the facility. 310 Code Mass. Regs. § 7.72(6)(b)(8). Failure to comply with the established rates is punishable by administrative penalties, including the imposition of a fine not to exceed $25,000 per violation. See G. L. c. 21A, § 16; G. L. c. 111, § 142A.
We agree with the plaintiffs that the imposition of declining rates falls short of complying with the requirement of § 3 (d) that regulated sources are subject to a source-wide volumetric cap on emissions.
The department argues that § 3 (d) does not require it to cap emissions levels by groups of sources, because doing so would effectively limit the number of sources of greenhouse gases in the Commonwealth, as well as emissions from those sources, rendering such regulations economically untenable, as they would prevent new or expanding sources of greenhouse gases from coming online. To the contrary, the statute explicitly contemplates that new or expanding sources of emissions will come online in the Commonwealth. See G. L. c. 21N, § 9 ("Nothing in this chapter shall preclude, prohibit or restrict the construction of a new facility or the expansion of an existing facility subject to regulation under this chapter, if all applicable requirements are met and the facility is in compliance with regulations adopted pursuant to [the statute]"). To the extent that emissions limits may constrain new sources from coming online in the future, such a consequence is one of legislative making. We note, however, that existing regulatory schemes provide frameworks for how regulations can address future emissions from new or expanding sources while ensuring that over-all emissions limits decline.
Massachusetts joined the RGGI in 2007. See Regional Greenhouse Gas Initiative Inc., Program Design Archive, http://rggi.org/design/history [https://perma.cc/MP4Z-62HX]. The Legislature subsequently required the department to adopt rules and regulations in compliance with the RGGI to "limit and reduce the total carbon dioxide emissions release by electric generating stations." G. L. c. 21A, § 22 (b). Accordingly, the department established the carbon dioxide budget trading program, which incorporates the RGGI scheme into its regulations and contains a schedule of the Commonwealth's annual "base budget," which declines by the requisite 2.5 per cent each year, through 2020, when the base budget will be 12,617,227 tons of carbon dioxide. See 310 Code Mass. Regs. § 7.70(1)(a), (5)(a) (2013); See Regional Greenhouse Gas Initiative Inc., The RGGI CO2 Cap, available at http://rggi.org/design/overview/cap [https://perma.cc/T6V5-ATN6].
We conclude that although the RGGI program and amendments thereto are very important to the over-all regional scheme of reducing carbon dioxide emissions, they do not qualify as a regulation under § 3 (d). The RGGI was established under G. L. c. 21A, § 22, a statute entirely separate from the act. There can be little doubt that the Legislature, which directed the department to adopt RGGI regulations in G. L. c. 21A, § 22, knew of this
The department asks us to read the statutory provisions together, as directing the department to promulgate regulations establishing "a desired level of declining annual aggregate emission limits," G. L. c. 21N, § 3 (d), and with respect to the electric sector, "tak[e RGGI] into account," G. L. c. 21N, § 3 (c). We disagree, as this reading ignores the Legislature's intent that regulations related to electric sector be treated differently from regulations promulgated under § 3 (d).
Moreover, even if the Legislature intended for §§ 3 (c) and 3 (d) to be construed together, the RGGI still falls short of complying with the requirements of § 3 (d) by virtue of the auction feature, which permits a regulated carbon dioxide source in one State to purchase allowances from any other State to meet the compliance requirements. See Fact Sheet, supra. Under the design of the program, if a Massachusetts power plant needed to purchase allowances at the quarterly RGGI auction in order to achieve compliance, and the allowances in the Massachusetts carbon dioxide base budget were exhausted, the Massachusetts power plant could purchase allowances from another participating State. Because of this feature, there is no way to ensure mass-based reductions in carbon dioxide emissions from power
c. Low emission vehicle program. The Federal Clean Air Act establishes motor vehicle emission standards. Under the statute, however, a State may obtain a waiver of Federal preemption permitting it to adopt California's more stringent emissions standards. See 42 U.S.C. §§ 7543, 7507. In 1990, Massachusetts adopted California's standards for regulating motor vehicle greenhouse gas emissions. See G. L. c. 111, § 142K, inserted by St. 1990, c. 510, § 2. That statute also required the department to establish and administer standards for motor vehicle emissions based on California's standards. G. L. c. 111, § 142K. Pursuant to that statute, the department promulgated regulations incorporating California's LEV regulatory scheme. See 310 Code Mass. Regs. § 7.40(1). See also Cal. Code Regs., tit. 13, § 1961.3 (2014). The LEV regulations set exhaust and evaporative standards and regulate vehicle emissions on the basis of the fleet-wide averages of individual automobile manufacturers. 310 Code Mass. Regs. § 7.40.
We conclude that the LEV regulations do not fully comply with the mandate of § 3 (d). The original promulgation of these regulations significantly preceded the Legislature's adoption of the act. Although amendments to programs such as the LEV program certainly advance environmental goals, they do not embody the change in "business as usual" required by the Legislative mandate
These considerations aside, the LEV amendments fall short of the requirements of § 3 (d) because, like the sulfur hexafluoride regulations, the LEV program regulates through the imposition of rates, rather than actual caps on emissions. The LEV regulations do not ensure reduced emissions, but instead established fixed rates of emissions from vehicles sold in Massachusetts. Thus, although the rate may remain constant or even decline, the number of vehicles sold may increase.
So ordered.
The department contends that the phrase "category of sources" is not defined in the statute. To the contrary, the phrase "sources or category of sources" is part of the definition of "greenhouse gas emissions source" and plainly refers to a source of greenhouse gas emissions.
"Sources or category of sources" is a term of art in environmental law, and refers to the process by which regulators sometimes devise categories or subcategories of sources to ensure that rules are implemented fairly and rationally as they apply to a regulated source of greenhouse gas emissions. See, e.g., 42 U.S.C. § 7412(e)(2) (1999) ("In determining priorities for promulgating standards under subsection [d] of this section, the Administrator shall consider ... [C] the efficiency of grouping categories or subcategories according to the pollutants emitted, or the processes or technologies used"). The EPA has often devised subcategories. See, e.g., 61 Fed. Reg. 27132 (May 30, 1996) (printing and publishing); 61 Fed. Reg. 46906 (Sept. 5, 1996) (polymers and resins); 61 Fed. Reg. 48208 (Sept. 12, 1996) (polymers and resins); 62 Fed. Reg. 49052 (Sept. 18, 1997) (steel pickling); 63 Fed. Reg. 18504 (April 15, 1998) (pulp and paper); 64 Fed. Reg. 27450 (May 20, 1999) (ferroalloys); 64 Fed. Reg. 57572 (Oct. 26, 1999) (publicly owned treatment works); 67 Fed. Reg. 9156 (Feb. 27, 2002) (leather finishing).