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Delaying congestion pricing is one of the worst climate policy decisions made by any Democrat in recent memory.
If it holds, then Governor Kathy Hochul’s decision today to delay congestion pricing indefinitely in New York will be a generational setback for climate policy in the United States.
It is one of the worst climate policy decisions made by a Democrat at any level of government in recent memory.
It is worse than the Mountain Valley pipeline, the 300-mile gas pipeline that Senator Joe Manchin of West Virginia got approved in 2022 in exchange for supporting the Inflation Reduction Act.
And it is worse than the Willow project in Alaska, the oil mega-project that President Joe Biden okayed last year under pressure from that state’s local and indigenous leaders.
It is so bad because it will set back the development of climate-friendly cities and rapid transit infrastructure in the United States for years if not decades. And it will deter other American cities from implementing the kind of time-saving, pollution-averting, anti-gridlock measure that the country desperately needs.
There is nothing good to be said for this decision. It is bad politics, bad economics, bad governance, and bad for the climate.
Let us briefly count the ways that it is destructive.
It is stupid coalition politics. Hochul has alienated her allies, including environmental groups, state budget hawks, and transit advocates. Bill McKibben, the longtime New Yorker writer who has become one of the country’s most famous climate activists, called Hochul’s decision “one of the most aggressive anti-environmental actions ever undertaken by a Democratic governor.”
In exchange, Hochul has delighted her Republican adversaries, who can praise her wise decision-making in the weeks to come — and therefore brandish their own bipartisan bonafides — but continue to campaign against congestion pricing through November. Congestion pricing is unpopular now, but in her fecklessness, Hochul has guaranteed that it will be a live issue in November.
It is nonsense budget politics. Hochul says that she has delayed congestion pricing because she is worried about the city’s recovery from the pandemic, but regardless of her reasons, she has now left a $1 billion hole in the transit authority’s budget. The New York Times reports that she wants to fill that hole by raising taxes on the state’s businesses.
But that means that she has taken a tax formerly charged to some New York residents and businesses — but which would also fall on New Jersey and Connecticut residents and businesses — and shifted it entirely to in-state entities. She has, in essence, cut taxes on out-of-state residents and raised taxes on New York businesses and consumers.
And instead of taxing the right to use roads in downtown Manhattan, which are a limited public resource, she will instead tax all business activity in the state. What good will that do for New York’s economy?
Those political and financial flaws might be forgiven if her decision was good for the planet. But don’t worry: It’s also bad climate politics.
Cars, SUVs, and trucks belch more climate pollution into the atmosphere than any other single economic activity in the U.S. Nearly 20% of America’s annual carbon pollution comes from individuals and families driving their private vehicles around on roads and highways. This is a far larger share of national pollution than is generated by more famous climate villains, such as air travel.
We have good ways of dealing with all that carbon pollution. In suburbs, small towns, and rural America, the best way to deal with that tailpipe pollution is to gradually transition from gasoline-burning cars to electric vehicles. In some places, the country can also experiment with using experimental, climate-friendly liquid fuels.
But in cities, people have better and cheaper options than getting EVs. We can stop requiring people to drive everywhere and encourage them to walk, bike, and take public transit instead. That will require, at times, treating the use of roads in city centers as the limited public resource that it is — which means charging cars and trucks to enter the most crowded downtown areas of certain cities at certain times of the day.
That’s what congestion pricing is: a way of encouraging cities to grow in pro-climate, pro-environmental ways. Such a policy has already been successfully implemented in London, Singapore, and other congested cities. Even as an urban car owner, I long wanted the city where I lived for a decade — Washington, D.C. — to adopt a similar policy. After all, when Stockholm started its congestion fee, the rate of asthma attacks among its children dropped by half.
So I looked forward to the start of congestion pricing in New York City, America’s biggest, densest, and most transit-friendly city. New York was bushwhacking a trail for everyone else to follow: If congestion policy was a success there, then other American cities could experiment with it in some form.
By pausing that trial before it has even begun, Hochul has essentially frozen our ability to experiment with congestion pricing anywhere else in the country. By shuttering the policy in New York, she has poisoned pro-climate urban politics everywhere. Now people will say: You saw what happened when New York tried to do congestion pricing. Do you really want to try that here?
In the past, when national Democrats have approved new pipelines or oil projects, they have argued that those projects will not affect the country’s carbon pollution because only demand for fossil fuels, and not the supply of them, drives carbon emissions. But what makes congestion pricing so powerful is that demand is precisely what it targets. Congestion pricing makes buses run faster, pays for the subway system, and pushes people and businesses to consider the social cost of their driving before they get in the car.
Congestion pricing, if implemented widely, can actually conserve fossil fuels and cut carbon emissions. Now Hochul has halted its progress everywhere.
She has made, in other words, a local mistake with national and even global consequences. It is such a foolhardy error that it instantly recasts Kathy Hochul’s climate record as governor.
Hochul has previously been seen as a center-left governor playing a difficult but moderate environmental hand. But is that really her record? She has struggled to build wind farms off the coast of New York, even though it is essential to decarbonizing the state’s power grid. She has so far failed to pass the NY HEAT Act, which would help the state transition away from using fossil fuels to heat its buildings. She has even failed to pass little climate measures that would fund the state’s more modest climate goals.
I would compare her to Senator Joe Manchin, the fossil-fuel-friendly West Virginia lawmaker who repeatedly refused to vote for Biden’s climate policy — except at least Manchin put his political reputation on the line when it mattered and ultimately negotiated, and voted for, the Inflation Reduction Act. At least Manchin has many qualities to recommend him: He was canny, risk-taking, proud, and courageous when it counted. Hochul is just a loser.
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Geothermal is getting closer to the big time. Last week, Fervo Energy — arguably the country’s leading enhanced geothermal company — announced that its Utah demonstration project had achieved record production capacity. The new approach termed “enhanced geothermal,” which borrows drilling techniques and expertise from the oil and gas industry, seems poised to become a big player on America’s clean, 24/7 power grid of the future.
Why is geothermal so hot? How soon could it appear on the grid — and why does it have advantages that other zero-carbon technologies don’t? On this week’s episode of Shift Key, Rob and Jesse speak with a practitioner and an expert in the world of enhanced geothermal. Sarah Jewett is the vice president of strategy at Fervo Energy, which she joined after several years in the oil and gas industry. Wilson Ricks is a doctoral student of mechanical and aerospace engineering at Princeton University, where he studies macro-energy systems modeling. Shift Key is hosted by Robinson Meyer, the founding executive editor of Heatmap, and Jesse Jenkins, a professor of energy systems engineering at Princeton University.
Subscribe to “Shift Key” and find this episode on Apple Podcasts, Spotify, Amazon, or wherever you get your podcasts.
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Here is an excerpt from our conversation:
Robinson Meyer: I just wanted to hit a different note here, which is, Sarah, you’ve alluded a few times to your past in the oil and gas industry. I think this is true across Fervo, is that of course, the technologies we’re discussing here are fracking derived. What has your background in the oil and gas industry and hydrocarbons taught you that you think about at Fervo now, and developing geothermal as a resource?
Sarah Jewett: There are so many things. I mean, I’m thinking about my time in the oil and gas industry daily. And you’re exactly right, I think today about 60% of Fervo’s employees come from the oil and gas industry. And because we are only just about to start construction on our first power facility, the percentage of contractors and field workers from the oil and gas industry is much higher than 60%.
Jesse Jenkins: Right, you can’t go and hire a bunch of people with geothermal experience when there is no large-scale geothermal industry to pull from.
Jewett: That’s right. That’s right. And so the oil and gas industry, I think, has taught us, so many different types of things. I mean, we can’t really exist without thinking about the history of the oil and gas industry — even, you know, Wilson and I are sort of comparing our learning rates to learning rates observed in various different oil and gas basins by different operators, so you can see a lot of prior technological pathways.
I mean, first off, we’re just using off the shelf technology that has been proven and tested in the oil and gas industry over the last 25 years, which has been, really, the reason why geothermal is able to have this big new unlock, because we’re using all of this off the shelf technology that now exists. It’s not like the early 2000s, where there was a single bit we could have tried. Now there are a ton of different bits that are available to us that we can try and say, how is this working? How is this working? How’s this working?
So I think, from a technological perspective, it’s helpful. And then from just an industry that has set a solid example it’s been really helpful, and that can be leveraged in a number of different ways. Learning rates, for example; how to set up supply chains in remote areas, for example; how to engage with and interact with communities. I think we’ve seen examples of oil and gas doing that well and doing it poorly. And I’ve gotten to observe firsthand the oil and gas industry doing it well and doing it poorly.
And so I’ve gotten to learn a lot about how we need to treat those around us, explain to them what it is that we’re doing, how open we need to be. And I think that has been immensely helpful as we’ve crafted the role that we’re going to play in these communities at large.
Wilson Ricks: I think it’s also interesting to talk about the connection to the oil and gas industry from the perspective of the political economy of the energy transition, specifically because you hear policymakers talk all the time about retraining workers from these legacy industries that, if we’re serious about decarbonizing, will unavoidably have to contract — and, you know, getting those people involved in clean energy, in these new industries.
And often that’s taking drillers and retraining some kind of very different job — or coal miners — into battery manufacturers. This is almost exactly one to one. Like Sarah said, there’s additional expertise and experience that you need to get really good at doing this in the geothermal context. But for the most part, you are taking the exact same skills and just reapplying them, and so it allows for both a potentially very smooth transition of workforces, and also it allows for scale-up of enhanced geothermal to proceed much more smoothly than it potentially would if you had to kind of train an entire workforce from scratch to just do this.
This episode of Shift Key is sponsored by …
Watershed’s climate data engine helps companies measure and reduce their emissions, turning the data they already have into an audit-ready carbon footprint backed by the latest climate science. Get the sustainability data you need in weeks, not months. Learn more at watershed.com.
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Antenna Group helps you connect with customers, policymakers, investors, and strategic partners to influence markets and accelerate adoption. Visit antennagroup.com to learn more.
Music for Shift Key is by Adam Kromelow.
Why the new “reasoning” models might gobble up more electricity — at least in the short term
What happens when artificial intelligence takes some time to think?
The newest set of models from OpenAI, o1-mini and o1-preview, exhibit more “reasoning” than existing large language models and associated interfaces, which spit out answers to prompts almost instantaneously.
Instead, the new model will sometimes “think” for as long as a minute or two. “Through training, they learn to refine their thinking process, try different strategies, and recognize their mistakes,” OpenAI announced in a blog post last week. The company said these models perform better than their existing ones on some tasks, especially related to math and science. “This is a significant advancement and represents a new level of AI capability,” the company said.
But is it also a significant advancement in energy usage?
In the short run at least, almost certainly, as spending more time “thinking” and generating more text will require more computing power. As Erik Johannes Husom, a researcher at SINTEF Digital, a Norwegian research organization, told me, “It looks like we’re going to get another acceleration of generative AI’s carbon footprint.”
Discussion of energy use and large language models has been dominated by the gargantuan requirements for “training,” essentially running a massive set of equations through a corpus of text from the internet. This requires hardware on the scale of tens of thousands of graphical processing units and an estimated 50 gigawatt-hours of electricity to run.
Training GPT-4 cost “more than” $100 million OpenAI chief executive Sam Altman has said; the next generation models will likely cost around $1 billion, according to Anthropic chief executive Dario Amodei, a figure that might balloon to $100 billion for further generation models, according to Oracle founder Larry Ellison.
While a huge portion of these costs are hardware, the energy consumption is considerable as well. (Meta reported that when training its Llama 3 models, power would sometimes fluctuate by “tens of megawatts,” enough to power thousands of homes). It’s no wonder that OpenAI’s chief executive Sam Altman has put hundreds of millions of dollars into a fusion company.
But the models are not simply trained, they're used out in the world, generating outputs (think of what ChatGPT spits back at you). This process tends to be comparable to other common activities like streaming Netflix or using a lightbulb. This can be done with different hardware and the process is more distributed and less energy intensive.
As large language models are being developed, most computational power — and therefore most electricity — is used on training, Charlie Snell, a PhD student at University of California at Berkeley who studies artificial intelligence, told me. “For a long time training was the dominant term in computing because people weren’t using models much.” But as these models become more popular, that balance could shift.
“There will be a tipping point depending on the user load, when the total energy consumed by the inference requests is larger than the training,” said Jovan Stojkovic, a graduate student at the University of Illinois who has written about optimizing inference in large language models.
And these new reasoning models could bring that tipping point forward because of how computationally intensive they are.
“The more output a model produces, the more computations it has performed. So, long chain-of-thoughts leads to more energy consumption,” Husom of SINTEF Digital told me.
OpenAI staffers have been downright enthusiastic about the possibilities of having more time to think, seeing it as another breakthrough in artificial intelligence that could lead to subsequent breakthroughs on a range of scientific and mathematical problems. “o1 thinks for seconds, but we aim for future versions to think for hours, days, even weeks. Inference costs will be higher, but what cost would you pay for a new cancer drug? For breakthrough batteries? For a proof of the Riemann Hypothesis? AI can be more than chatbots,” OpenAI researcher Noam Brown tweeted.
But those “hours, days, even weeks” will mean more computation and “there is no doubt that the increased performance requires a lot of computation,” Husom said, along with more carbon emissions.
But Snell told me that might not be the end of the story. It’s possible that over the long term, the overall computing demands for constructing and operating large language models will remain fixed or possibly even decline.
While “the default is that as capabilities increase, demand will increase and there will be more inference,” Snell told me, “maybe we can squeeze reasoning capability into a small model ... Maybe we spend more on inference but it’s a much smaller model.”
OpenAI hints at this possibility, describing their o1-mini as “a smaller model optimized for STEM reasoning,” in contrast to other, larger models that “are pre-trained on vast datasets” and “have broad world knowledge,” which can make them “expensive and slow for real-world applications.” OpenAI is suggesting that a model can know less but think more and deliver comparable or better results to larger models — which might mean more efficient and less energy hungry large language models.
In short, thinking might use less brain power than remembering, even if you think for a very long time.
On Azerbaijan’s plans, offshore wind auctions, and solar jobs
Current conditions: Thousands of firefighters are battling raging blazes in Portugal • Shanghai could be hit by another typhoon this week • More than 18 inches of rain fell in less than 24 hours in Carolina Beach, which forecasters say is a one-in-a-thousand-year event.
Azerbaijan, the host of this year’s COP29, today put forward a list of “non-negotiated” initiatives for the November climate summit that will “supplement” the official mandated program. The action plan includes the creation of a new “Climate Finance Action Fun” that will take (voluntary) contributions from fossil fuel producing countries, a call for increasing battery storage capacity, an appeal for a global “truce” during the event, and a declaration aimed at curbing methane emissions from waste (which the Financial Times noted is “only the third most common man-made source of methane, after the energy and agricultural sectors”). The plan makes no mention of furthering efforts to phase out fossil fuels in the energy system.
The Interior Department set a date for an offshore wind energy lease sale in the Gulf of Maine, an area which the government sees as suitable for developing floating offshore wind technology. The auction will take place on October 29 and cover eight areas on the Outer Continental Shelf off Massachusetts, New Hampshire, and Maine. The area could provide 13 gigawatts of offshore wind energy, if fully developed. The Biden administration has a goal of installing 30 GW of offshore wind by 2030, and has approved about half that amount so far. The DOI’s terms and conditions for the October lease sale include “stipulations designed to promote the development of a robust domestic U.S. supply chain for floating wind.” Floating offshore wind turbines can be deployed in much deeper waters than traditional offshore projects, and could therefore unlock large areas for clean power generation. Last month the government gave the green light for researchers to study floating turbines in the Gulf of Maine.
In other wind news, BP is selling its U.S. onshore wind business, bp Wind Energy. The firm’s 10 wind farm projects have a total generating capacity of 1.3 gigawatts and analysts think they could be worth $2 billion. When it comes to renewables, the fossil fuel giant said it is focusing on investing in solar growth, and onshore wind is “not aligned” with those plans.
The number of jobs in the U.S. solar industry last year grew to 279,447, up 6% from 2022, according to a new report from the nonprofit Interstate Renewable Energy Council. Utility-scale solar added 1,888 jobs in 2023, a 6.8% increase and a nice rebound from 2022, when the utility-scale solar market recorded a loss in jobs. The report warns that we might not see the same kind of growth for solar jobs in 2024, though. Residential installations have dropped, and large utility-scale projects are struggling with grid connection. The report’s authors also note that as the industry grows, it faces a shortage of skilled workers.
Interstate Renewable Energy Council
Most employers reported that hiring qualified solar workers was difficult, especially in installation and project development. “It’s difficult because our projects are built in very rural areas where there just aren't a lot of people,” one interviewee who works at a utility-scale solar firm said. “We strive to hire as many local people as possible because we want local communities to feel the economic impact or benefit from our projects. So in some communities where we go, it is difficult to find local people that are skilled and can perform the work.”
The torrential rain that has battered central Europe is tapering off a bit, but the danger of rising water remains. “The massive amounts of rain that fell is now working its way through the river systems and we are starting to see flooding in areas that avoided the worst of the rain,” BBC meteorologist Matt Taylor explained. The Polish city of Nysa told its 44,000 residents to leave yesterday as water rose. In the Czech Republic, 70% of the town of Litovel was submerged in 3 feet of flooding. The death toll from the disaster has risen to 18. Now the forecast is calling for heavy rain in Italy. “The catastrophic rainfall hitting central Europe is exactly what scientists expect with climate change,” Joyce Kimutai, a climate scientist with Imperial College London’s Grantham Institute, toldThe Guardian.
A recent study examining the effects of London’s ultra-low emissions zone on how students get to school found that a year after the rules came into effect, many students had switched to walking, biking, or taking public transport instead of being driven in private vehicles.