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Early-bird pricing ends tonight for TC Sessions: Mobility 2019

The robotaxi’s blowin’ its horn and zooming autonomously down the home stretch. At 11:59 p.m. (PT) on June 21 — that’s tonight, people — we hit the brakes on early-bird pricing for TC Sessions: Mobility 2019. Don’t miss your chance to join us in San Jose, Calif. on July 10 and save a smooth $100. Get your ticket now.

Innovations across multiple technologies — AI, robotics, electric batteries, digital platforms and manufacturing — are transforming mobility and transportation. Join the leading experts, technologists, founders and investors as they discuss the promise, hype and challenges within this nascent revolution.

More than 1,000 attendees are expected for a program-packed day of speakers, panel discussions, workshops and demos. How packed? Here’s the day’s agenda, plus a sample of just some of the presentations we have lined up:

  • Delivering the Future: We’ll talk to Dave Ferguson, co-founder of Nuro, about the self-driving car company’s focused approach to groceries, food and retail goods.
  • Intel’s $15 Billion Bet: Intel bought Mobileye two years ago. As co-founder and CEO Amnon Shashua moves toward launching an autonomous vehicle platform in 2021, we’ll speak with him about his overall vision, Mobileye’s future business pursuits and an update on the AV program.
  • Scooter Wars: Scooters have taken over cities, and there’s no end in sight. Three leaders on the front lines of this battleground — Scoot’s Katie DeWitt, Tony Ho of Segway-Ninebot and JUMP’s Nick Foley — will discuss what’s next for scooters, shared-model sustainability, unit economics and more.

This TC Session is a stellar networking opportunity, and you’ll have extra help cutting through the noise to make the right connections. We’re talking CrunchMatch, TechCrunch’s free business match-making platform. Easily search for like-minded attendees, send and schedule meetings and make the most of your limited time. Learn how CrunchMatch works here.

Don’t miss your chance to connect with the leading minds and makers of your community at TC Sessions: Mobility 2019 on July 10, in San Jose, Calif. And don’t miss your chance to save $100. Buy your early-bird ticket now before the clock runs out tonight at 11:59 p.m. (PT).

Is your company interested in sponsoring or exhibiting at TC Sessions: Mobility? Contact our sponsorship sales team by filling out this form.

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Rivian and ‘Free Solo’ star Alex Honnold team up to build solar microgrid with used EV batteries

Rivian, the once secretive company that made its public debut in November with an electric pickup truck and SUV, plans to give its batteries a second life and put them to work in a solar microgrid project in Puerto Rico.

The automaker is teaming up with The Honnold Foundation, an organization started by Alex Honnold, the professional climber and subject of the documentary Free Solo, on the microgrid project. Honnold and Rivian CEO RJ Scaringe will discuss the project Saturday in Denver. The discussion, which is scheduled for 6 pm MT, will be live-streamed.

The microgrid project will be set up in Adjuntas, a city of about 20,000 people in midwestern Puerto Rico that was severely impacted by Hurricane Maria in 2017. Casa Pueblo, an environmental watchdog based in Adjuntas that has been looking for ways to set up affordable sources of community power, is also a partner in the project.

Rivian is providing 135 kilowatt-hour battery packs from its development vehicles to support the microgrid. Earlier this year, battery engineers from Rivian and The Honnold Foundation visited Casa Pueblo and met with community leaders to design a site-specific system that will power many of the businesses located in the Adjuntas town square.

The downtown solar microgrid project will serve two purposes. It will give residents access to electricity for core business if the primary source of power is gone. The microgrid will also be used daily to offset the high cost of energy in Puerto Rico, which is twice the national average of the U.S.

The system is expected to launch in 2020.

“Second-life batteries are a big enabler to accelerating widespread adoption of renewable energy, and it’s exciting to envision this system contributing importantly to a community. This project allows us to model a customized energy storage solution that takes into account space constraints, disaster resiliency and energy independence,” Scaringe said.

The project marks the beginning of the company’s long-term plans to find a wide variety of applications for second-life batteries.

The company designed its pack, module and battery management system to transition from vehicle energy storage to stationary energy storage at the end of their vehicle life. The module itself is thin, a design that allows for second-life applications that are space-efficient and customizable.

Rivian is an electric automaker focused on adventure vehicles like pickup trucks and sport utility vehicles. The company announced in February that it had raised $700 million in a round led by Amazon.

The company has spent the first part of its life operating out of the public eye. It was originally launched as Mainstream Motors in 2009. By 2011, the name changed to Rivian and moved out of Florida. Today, the company has more than 1,000 employees split between development locations in Plymouth, Mich., San Jose and Irvine, Calif. and Surrey, England. It also has a 2.6 million-square-foot factory in Normal, Ill.

Rivian plans to launch the R1T electric pickup truck and the R1S SUV in the U.S. in late 2020, with introduction to other global geographies starting in 2021.

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Workhorse gets $25 million needed to finish electric delivery van

Workhorse Group, the electric vehicle company that grabbed headlines last month over a proposed deal to buy General Motors’ Lordstown, Ohio factory, has raised $25 million from a group of unnamed investors.

The money will not go toward the factory. Instead, it will be used for the more pressing matter of keeping the company running. Under terms of the deal, investors will receive preferred stock and warrants to buy shares. An annual dividend will be paid out in shares of Workhorse stock.

The Cincinnati-based company is small, with fewer than 100 employees. Its biggest problem isn’t ideas or even product pipeline; it’s capital.

Workhorse has struggled financially at various points since its founding in 1998. The company reported just $364,000 in revenue in the first quarter, down from $560,000 in the same period last year. As of March 30, 2019, the company had cash, cash equivalents and short-term investments of $2.8 million, compared to $1.5 million as of December 31, 2018.

Workhorse borrowed $35 million from hedge fund Marathon Asset Management earlier this year. 

Workhorse, which was once owned by Navistar and sold in 2013 to AMP Holding, has a customer pipeline for its electric trucks that includes UPS. It’s also hoping to win a contract with the United States Postal Service.

But it needs capital to scale up. The funding gives Workhorse the capital to deliver on its existing backlog and produce its N-GEN delivery van, according to CEO Duane Hughes.

“We now have all necessary pieces in place to bridge Workhorse into full-scale N-GEN production and are looking forward to commencing the manufacturing process, in earnest, during the fourth quarter of this year,” Hughes said in a statement.

Meanwhile, GM has been in talks since early 2019 to sell its Lordstown vehicle factory in Ohio to Workhorse Group. GM’s Lordstown factory stopped producing the automaker’s Chevrolet Cruze in March; without any new vehicles slated for the factory, workers were laid off.

Under the potential Lordstown deal, a new entity led by Workhorse founder Steve Burns would acquire the facility. Workhorse would hold a minority interest in the new entity. This new entity would allow Workhorse to seek new equity without diluting existing shareholder value.

Workhorse would build a commercial electric pickup at the plant if the deal goes through, Hughes has said.

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New registrations for electric vehicles doubled in US since last year

Electric vehicles, still a small percentage of the total automotive market in the U.S., are beginning to gain ground, according to analysis by IHS Markit.

There were 208,000 new registrations for electric vehicles in the U.S. last year, more than double the number filed in 2017, IHS said Monday.

That growth in EVs was heavily concentrated in California, as well as nine other states that have adopted the Zero Emission Vehicle program. California was the first to launch the ZEV program‚ a state regulation that requires automakers to sell electric cars and trucks there. Connecticut, Maine, Maryland, Massachusetts, New Jersey, New York, Oregon, Rhode Island and Vermont are also ZEV states.

California accounted for nearly 46 percent, or 95,000, of new EV registrations in 2018, IHS said. California has 59 percent of market share of registered electric vehicles in the U.S.

Those numbers are expected to push even higher over the next two years as more electric vehicles come on the market and an increasing number of existing EV owners stick with the technology.

More than 350,000 new EVs will be sold in the U.S. in 2020. Those figures will give EVs a still tiny 2 percent share of the total U.S. fleet. By 2025, that figure is expected to rise to more than 1.1 million vehicles sold, or a 7 percent share, according to recent IHS Markit.

The Tesla’s Model 3 is the top-selling all-electric in the U.S. so far this year, followed by the Chevy Bolt, Tesla Model X, Tesla Model S and the Nissan Leaf, according to estimates by Inside EVs. More EVs are just now coming onto the market, or about to in the coming months , including the Kia Niro EV and Hyundai Kona EV. Startup Rivian expects to start production in 2020.

“A rapid increase in EV nameplates is the catalyst behind the projected growth throughout the next decade,” Devin Lindsay, IHS Markit powertrain analyst said in a statement. “While relatively successful models such as the Tesla Model 3 mature in the market, other traditional automakers will be rolling out not just one EV as we have seen in the past, but multiple models off dedicated EV platforms.”

IHS found that loyalty rates for EVs have also increased, with nearly 55 percent of all new EV owners who returned to market during the fourth quarter of 2018 acquiring (purchasing or leasing) another EV, up from 42 percent in the prior quarter.

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Lidar startup Ouster raises $60 million in production run-up

Ouster has raised $60 million as the San Francisco-based lidar startup opens a new facility that will have the capacity to assemble and ship several thousand sensors a month by the end of 2019.

The new factory, which will have a grand opening ceremony March 28, currently produces hundreds of sensors per month. Ouster says at full capacity, the factory will produce $25 million to $50 million in inventory per month.

Lidar measures distance using laser light to generate highly accurate 3D maps of the world around the car. It’s considered by most in the self-driving car industry a key piece of technology required to safely deploy robotaxis and other autonomous vehicles (although not everyone agrees). However, the sensors are also useful in other industries — and this is where Ouster’s business model is targeted.

Ouster has cast a wider net for customers than some of its rivals. Unlike others vying solely for automotive customers working on the development of autonomous vehicles, Ouster is selling sensors to other industries. Ouster is selling its light detection and ranging radar sensors to robotics, drones, mapping, defense, building security, mining and agriculture companies.

The strategy has appeared to pay off. Ouster says it has 400 customers from 15 industries.

The $60 million in additional funding follows a Series A raise of $27 million announced back in 2017 as Ouster came out of stealth mode. In the years since, the company led by Angus Pacala has grown to more than 100 employees and announced four lidar sensors, with resolutions from 16 to 128 channels, and two product lines, the OS-1 and OS-2. The startup expects to nearly double its headcount in the coming year to support further product line development.

The $60 million in equity and debt funding includes investments from Runway Growth Capital and Silicon Valley Bank, as well as additional funding from Series A participants Cox Enterprises, Constellation Tech Ventures, Fontinalis Partners, Carthona and others.

Ouster said the additional investment has helped to develop Ouster’s product lines, including the launch of the OS-1 128 lidar sensor, and fund the expansion of its production facilities.

The company also announced the appointment of Susan Heystee, senior VP for OEM business at Verizon Connect, to its board of directors.

Waymo, the self-driving car company under Google’s Alphabet, could be a new competitor to the company. Waymo announced this month it will start selling its custom lidar sensors to companies outside of self-driving cars. Waymo will initially target robotics, security and agricultural technology. The sales will help the company scale its autonomous technology faster, making each sensor more affordable through economies of scale, Simon Verghese, head of Waymo’s lidar team, wrote in a Medium post at the time.

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The top 10 startups from Y Combinator W19 Demo Day 1

Electric-vehicle chargers, heads-up displays for soldiers and the Costco of weed were some of our favorites from prestigious startup accelerator Y Combinator’s Winter 2019 Demo Day 1. If you want to take the pulse of Silicon Valley, YC is the place to be. But with more than 200 startups presenting across two stages and two days, it’s tough to keep track.

You can check out our write-ups of all 85 startups that launched on Demo Day 1, and come back later for our full index and picks from Day 2. But now, based on feedback from top investors and TechCrunch’s team, here’s our selection of the top 10 companies from the first half of this Y Combinator batch, and why we picked each.

Ravn

Looking around corners is one of the most dangerous parts of war for infantry. Ravn builds heads-up displays that let soldiers and law enforcement see around corners thanks to cameras on their gun, drones or elsewhere. The ability to see the enemy while still being behind cover saves lives, and Ravn already has $490,000 in Navy and Air Force contracts. With a CEO who was a Navy Seal who went on to study computer science, plus experts in augmented reality and selling hardware to the Department of Defense, Ravn could deliver the inevitable future of soldier heads-up displays.

Why we picked Ravn: The AR battlefield is inevitable, but right now Microsoft’s HoloLens team is focused on providing mid-fight information, like how many bullets a soldier has in their clip and where their squad mates are. Ravn’s tech was built by a guy who watched the tragic consequences of getting into those shootouts. He wants to help soldiers avoid or win these battles before they get dangerous, and his team includes an expert in selling hardened tech to the U.S. government.

Middesk

It’s difficult to know if a business’ partners have paid their taxes, filed for bankruptcy or are involved in lawsuits. That leads businesses to write off $120 billion a year in uncollectable bad debt. Middesk does due diligence to sort out good businesses from the bad to provide assurance for B2B deals, loans, investments, acquisitions and more. By giving clients the confidence that they’ll be paid, Middesk could insert itself into a wide array of transactions.

Why we picked Middesk: It’s building the trust layer for the business world that could weave its way into practically every deal. More data means making fewer stupid decisions, and Middesk could put an end to putting faith in questionable partners.

Convictional

Convictional helps direct-to-consumer companies approach larger retailers more simply. It takes a lot of time for a supplier to build a relationship with a retailer and start selling their products. Convictional wants to speed things up by building a B2B self-service commerce platform that allows retailers to easily approach brands and make orders.

Why we picked Convictional: There’s been an explosion of D2C businesses selling everything from suitcases to shaving kits. But to drive exposure and scale, they need retail partners who’re eager not to be cut out of this growing commerce segment. Playing middleman could put Convictional in a lucrative position, while also making it a nexus of valuable shopping data.

Dyneti Technologies

Dyneti has invented a credit card scanner SDK that uses a smartphone’s camera to help prevent fraud by more than 50 percent and improve conversion for businesses by 5 percent. The business was started by a pair of former Uber employees, including CEO Julia Zheng, who launched the fraud analytics teams for Account Security and UberEATS. Dyneti’s service is powered by deep learning and works on any card format. In the two months since it launched, the company has signed contracts with Rappi, Gametime and others.

Why we picked Dyneti: Cybersecurity threats are growing and evolving, yet underequipped businesses are eager to do more business online. Dyneti is one of those fundamental B2B businesses that feels like Stripe — capable of bringing simplicity and trust to a complex problem so companies can focus on their product.

AmpUp

The “Airbnb for electric-vehicle chargers,” ampUp is preparing for a world in which the majority of us drive EVs — it operates a mobile app that connects a network of thousands of EV chargers and drivers. Using the app, an electric-vehicle owner can quickly identify an available and compatible charger, and EV charger owners can earn cash sharing their charger at their own price and their own schedule. The service is currently live in the Bay Area.

Why we picked ampUp: Electric vehicles are inevitable, but reliable charging is one of the leading fears dissuading people from buying. Rather than build out some massive owned network of chargers that will never match the distributed gas station network, ampUp could put an EV charger anywhere there’s someone looking to make a few bucks.

Flockjay

Flockjay operates an online sales academy that teaches job seekers from underrepresented backgrounds the skills and training they need to pursue a career in tech sales. The 12-week bootcamp offers trainees coaching and mentorship. The company has launched its debut cohort with 17 students, 100 percent of whom are already in job interviews and 40 percent of whom have already secured new careers in the tech industry.

Why we picked Flockjay: Unlike coding bootcamps that can require intense prerequisites, killer salespeople can be molded from anyone with hustle. Those from underrepresented backgrounds already know how to expertly sell themselves to attain opportunities others take for granted. Flockjay could provide economic mobility at a crucial juncture when job security is shaky.

Deel

Twenty million international contractors work with U.S. companies, but it’s difficult to onboard and train them. Deel handles the contracts, payments and taxes in one interface to eliminate paperwork and wasted time. Deel charges businesses $10 per contractor per month and a 1 percent fee on payouts, which earns it an average of $560 per contractor per year.

Why we picked Deel: The destigmatization of remote work is opening new recruiting opportunities abroad for U.S. businesses. But unless teams can properly integrate these distant staffers, the cost savings of hiring overseas are negated. As the globalization megatrend continues, businesses will need better HR tools.

Glide

There has been a pretty major trend toward services that make it easier to build web pages or mobile apps. Glide lets customers easily create well-designed mobile apps from Google Sheets pages. This not only makes it easy to build the pages, but simplifies the skills needed to keep information updated on the site.

Why we picked Glide: While desktop website makers is a brutally competitive market, it’s still not easy to make a mobile site if you’re not a coder. Rather than starting from a visual layout tool with which many people would still be unfamiliar, Glide starts with a spreadsheet that almost everyone has used. And as the web begins to feel less personal with all the brands and influencers, Glide could help people make bespoke apps that put intimacy and personality first.

Docucharm

The platform, co-founded by former Uber product manager Minh Tri Pham, turns documents into structured data a computer can understand to accurately automate document processing workflows and take away the need for human data entry. Docucharm’s API can understand various forms of documents (like paystubs, for example) and will extract the necessary information without error. Its customers include tax prep company Tributi and lending business Aspire.

Why we picked Docucharm: Paying high-priced, high-skilled workers to do data entry is a huge waste. And optical character recognition like Docucharm’s will unlock new types of businesses based on data extraction. This startup could be the AI layer underneath it all.

Flower Co

Flower Co provides memberships for cheaper weed sales and delivery. Most dispensaries cater to high-end customers and newbies that want expensive products and tons of hand-holding. In contrast, Flower Co caters to long-time marijuana enthusiasts who want huge quantities at low prices. They’re currently selling $200.000 in marijuana per month to 700 members. They charge $100 a year for membership, and take 10 percent on product sales.

Why we picked Flower Co: Marijuana is the next gold rush, a once-in-a-generation land-grab opportunity. Yet most marijuana merchants have focused on hyper-discerning high-end customers despite the long-standing popularity of smoking big blunts of cheap weed with a bunch of friends. For those who want to make cannabis consumption a lifestyle, and there will be plenty, Flower Co could become their wholesaler.

Honorable Mentions

Atomic Alchemy – Filling the shortage of nuclear medicine

Yourchoice – Omni-gender non-hormonal birth control

Prometheus – Turning CO2 into gas

Lumos – Medical search engine for doctors

Heart Aerospace – Regional electric planes

Boundary Layer Technologies – Super-fast container ships

Additional reporting by Kate Clark, Greg Kumparak and Lucas Matney

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How to decarbonize America — and the world

Ramez Naam
Contributor

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The Green New Deal has burst onto the American stage, spurring more conversation about – and aspiration for – ambitious climate policy than at any point in at least a decade.

I’m glad to see it. Suddenly, climate is on the agenda, and ambitions for climate policy are higher than perhaps at any point in US history.

The Green New Deal is a resolution right now. It’s a statement of intent. It hasn’t yet progressed to the point of detailed policy proposals or legislation, which means now is the time to help craft its details.

For the last decade I’ve written about and publicly spoken about innovation in clean technology and ways to address climate change. I’ve helped to lead a climate-fighting citizen ballot initiative in my home state of Washington, invested in clean energy startups, and advised on climate and clean energy policies of other nations.

In that time, my views on what sort of climate policies have the most impact and have the greatest chances of winning over voters have changed. Policies that I thought were foolish a decade ago have revealed themselves to have been farsighted and effective. Policies I thought were powerful and elegant have, on closer inspection, revealed themselves to be far less effective than I believed. And the history of climate and energy legislation and attitudes in the US has demonstrated a path to getting new and more ambitious policies passed.

What I’ve learned over time is that good climate policy has 3 key traits:

  1. It has a large, meaningful impact on carbon emissions and climate change.
  2. It specifically tackles the problems that aren’t already being tackled by the market.
  3. It actually gets passed into law.

All of that is compatible with a Green New Deal. Here’s what it could look like.

  1. Impact: Climate Change Isn’t Local. Good Policy Isn’t, Either.

The conventional wisdom on climate policy is straightforward. Every nation uses its policies to reduce its own emissions. This conventional wisdom is wrong. Carbon dioxide doesn’t honor national boundaries. Climate change is global. And the best climate policies have a global impact as well.

The US, overwhelmingly, is the country most responsible for climate change. The carbon dioxide and other greenhouse gases we’ve emitted over the past decades are largely still in the atmosphere, still warming the planet. The world’s present and future emissions, though, are increasingly elsewhere. The US now accounts for just 15% of the world’s annual greenhouse gas emissions from fossil fuels.  And because the developing world is rising in energy consumption far faster than the US, American emissions will be an ever-smaller share each year.

That means that, despite the fact that the US is the largest overall contributor to climate change thus far, the US could completely eliminate its carbon emissions and barely affect the future course of climate.

This means we need a different strategy. It’s not enough to eliminate the US’s carbon emissions alone. Our goal has to be to drive down the whole world’s emissions.

The Most Effective Climate Policy in the World

How can the US drive down the emissions of other countries? We can do it by making clean technologies irresistible to the entire world. And there we can take a lesson from the most effective climate policy of all time – Germany’s early subsidies of solar and wind.

Solar panels and electricity-producing wind farms have been around for decades. Yet, for most of that time, they’ve been a far more expensive way to produce electricity than burning coal or natural gas. Germany changed that. Starting in 2010, Germany’s Energiewende legislation heavily subsidized solar and wind. That, in turn, drove utilities and home owners and corporations to purchase solar and wind. And that, in turn, made the technology cheaper. As prices fell, other nations – first European nations, then the US, and then China – jumped into the fray, enacting more ambitious policies that further brought down the price of solar and wind (and now batteries and electric cars).

Why did subsidies bring down the price of technology? Because industry scale leads to industry learning and innovation, and that, in turn, leads to lower cost ways to manufacture, deploy, and manage new technologies. We’ve seen this for a century. Almost all technologies improve via Wright’s Law, often referred to as the learning curve or the experience curve.  In the late 1930s, Theodore Paul Wright, an aeronautical engineer, observed that every doubling of production of US aircraft brought down prices by 13%.  Since then, a similar effect has been found in nearly every technology area, going back to the Ford Model T.

Electricity from solar power, meanwhile, drops in cost by 25-30% for every doubling in scale. Battery costs drop around 20-30% per doubling of scale. Wind power costs drop by 15-20% for every doubling.  Scale leads to learning, and learning leads to lower costs.

Germany began subsidizing solar and wind when they were extremely small scale industries, and their costs were quite high. Those subsidies drove German utilities, businesses, and home owners to purchase clean energy. That created a market. That, in turn, led solar and wind manufacturers to leap into the market, competing ruthlessly against one another to bring down their prices faster, offering the best product at the best price to customers.

By scaling the clean energy industries, Germany lowered the price of solar and wind for everyone, worldwide, forever.

The International Renewable Energy Agency finds that, between 2010 and 2019, the price of solar power, worldwide, has dropped by more than a factor of 5. The price of offshore wind power has dropped by a factor of three.

In just the past decade, solar power has gone from being uneconomical anywhere on earth without subsidies, to being cheaper than any fossil fuel electricity in the sunniest parts of the world. Building new solar is now cheaper than building new fossil fuel electricity plants in India, Chile, Mexico, Spain, and in sunny US states like Arizona, Nevada, Colorado, and  Texas.

And because, in general, businesses, utilities, and consumers all around the world will deploy the cheapest energy they can, solar is now the fastest growing energy source around the world.

Happy? Good. Thank policy makers in Germany, and the US, and China – all of whom took action to bootstrap markets for solar and wind before they were cost-competitive.

The lesson for US climate policy is clear: The biggest impact we can have is by driving down the cost of technologies that reduce carbon emissions, to the point that clean technologies are cheapest way to provide the energy, food, and transportation that everyone around the world desires, and then spreading those technologies to the world. That means a mix of early-stage government R&D, government incentives to scale deployment in the private sector, and a very healthy dollop of private sector competition.

1 – As solar volume has grown, prices have dropped, leading to more growth.

Would the Green New Deal drive down the cost of clean technologies in a way that scales to the rest of the world? The current resolution is vague on exactly how the rapid decarbonization in the US would happen. One reason for concern is that the now-retracted Green New Deal FAQ released by Representative Alexandria Ocasio-Cortez specifically dismissed the idea that the private sector – even with government incentives – could pull off this decarbonization, and explicitly says that “Merely incentivizing the private sector doesn’t work”.

I agree in one sense – basic government R&D is a high-value investment, especially when the technologies we need to invent don’t even exist yet. The government has a vital role to play. At the same time, the incredible, unprecedented decline in cost of solar power, wind power, batteries, and electric cars has happened both because of early government R&D, and because private sector companies, incentivized by governments, have brought these technologies to market and been forced to compete with one another to provide the best technology at the lowest price. Ignoring this is to ignore what brought us the very best progress we’ve seen in cleaning up the way we produce energy.

The FAQ I reference has been retracted. The Green New Deal hasn’t yet become a detailed roadmap or legislation. As it does, I urge you, Green New Deal legislators and architects: Craft policies that create incentives to build and deploy clean technologies. Then use the market for what it’s good at: fierce competition that delivers ever-better products at ever-lower prices.

  1. Tackling the Hardest, Least-Solved Problems

The Green New Deal resolution is really quite comprehensive. It touches on almost every source of US emissions.

Even so, there’s a tendency for climate and energy wonks – and legislators – to focus on electricity and cars when discussing climate policy.

Electricity and cars aren’t our hardest problems. They’re both big chunks of our carbon emissions, yes. And they both need more policy to drive them home. (More on that down below.) They’re also the areas where we’ve made the most progress, with incredible declines in the price of clean electricity and electric vehicles that put us at the edge of a tipping point. We aren’t over the hump yet, but the solutions are here – and if we continue to push them with policy, we can decarbonize electricity and cars.

Our hardest climate problems – the ones that are both large and lack obvious solutions – are agriculture (and deforestation – its major side effect) and industry. Together these are 45% of global carbon emissions. And solutions are scarce.

Agriculture and land use account for 24% of all human emissions. That’s nearly as much as electricity, and twice as much all the world’s passenger cars combined.

Industry – steel, cement, and manufacturing – account for 21% of human emissions – one and a half times as much as all the world’s cars, trucks, ships, trains, and planes combined.

Add industry, agriculture, and land use together and you have a very sticky, very difficult-to-improve 45% of carbon emissions.

By contrast, electricity and transportation are 39% of global emissions – nearly as big. The good news is that in electricity and transportation, we have momentum.

We do NOT have momentum in reducing the carbon emissions of industry and agriculture.

Decarbonizing Agriculture and Industry

The Green New Deal does, happily, mention these sectors. In agriculture, though, it avoids the biggest chunk of the problem: Livestock.

Livestock around the world – specifically cows, pigs, and other mammals – consume a tremendous amount of the world’s agriculture output. They drive the bulk of the deforestation around the world (which itself releases carbon into the atmosphere, and reduces forest land that could absorb carbon instead). And cows and pigs belch methane – a greenhouse gas that’s causes tremendously more warming than CO2 – about 100 times more in the first year, and 30 times more over the course of a century. Livestock in total produce about 15% of the world’s carbon emissions, as much as all transportation on land, air, and sea combined.

And the world’s appetite for meat is rapidly growing, with consumption expected to double in the next 40 or so years.

Cows should scare you more than coal.

In industry, meanwhile, steel and cement production both remain incredibly carbon intensive. We’ve learned to recycle steel using electricity, but making new steel from ore still involves the use of a tremendous amount of coal. (Theoretical ways to make steel without coal exist, but aren’t expected to be commercially viable for another 20 years.) We’re closer to technologies that could make cement without carbon emissions, but those technologies are still young, expensive, and haven’t been deployed to any significant degree. And the rest of industry – from manufacturing finished goods to making petrochemical products like plastics and lubricants – remains extremely carbon intensive.

These two sectors – agriculture and industry – are on path to be the two largest sources of carbon emissions in the world. And they’re the ones we have the fewest and least developed solutions for. The Green New Deal – or any serious climate policy – ought to focus first and foremost on R&D to develop methods for clean agriculture and clean construction and manufacturing; and then on incentives to deploy those clean methods, which will initially be extremely expensive, until they hit the scale to compete directly with dirty methods on cost alone.

What would a climate policy for agriculture and industry look like?  Let’s take a page from energy, where we have a one-two punch: 1) Agencies like the Department of Energy’s Advanced Research Projects Agency for Energy, ARPA-E, that funds early stage energy science and technology R&D; and 2) A breadth of state and national subsidies and incentives that help those technologies reach higher scale and lower costs.  

This one-two punch first invents technology (ARPA-E is modeled after the original ARPA, which created the foundations of the internet, originally called ARPANET), and then scales technology to the point that the new clean technology is cheaper than the alternatives.

We can use that one-two punch in agriculture and industry, by creating:

  1. An ARPA-A in the Department of Agriculture, tasked with finding a way to reduce the carbon emissions of agriculture broadly, and especially of livestock and meat. ARPA-A might fund research into:
    1. Radically increasing crop yields so farmers have less need to chop down forests to feed their animals.
    2. Technologies to eliminate the methane emissions of cows and pigs.
    3. Technologies to reduce the emissions of NOx (another incredibly powerful greenhouse gas) that’s produced by animal manure left on fields, and to a lesser extent by excess synthetic fertilizer.
    4. Real-time global deforestation monitoring technology, (perhaps in partnership with other agencies) to spot illegal deforestation as soon as it happens, and nip it in the bud.
    5. New alternatives to meat – from plants or stem cells – that might someday taste and feel as compelling as the real thing.
  2. Incentives to Deploy Clean Agriculture would be paired with the early-stage research of an ARPA-A.  Just-out-of-the-lab technologies to reduce agricultural greenhouse emissions are likely to start expensive. Early (and steep) subsidies could motivate farmers (or even consumers) to adopt those new technologies and products. Just like German subsidies, by scaling solar, bootstrapped an industry whose fierce competition then brought down prices, early subsidies for clean agriculture and clean foods would do the same.

    Such incentives could include:
    1. Incentives for farmers who capture carbon in their soils. (By far the cheapest way to remove carbon from the atmosphere.)
    2. Subsidizing feed additives or other products that reduce methane emissions or NOx emissions from animals and their manure.
    3. Tax breaks for farmers who invest in “precision agriculture” technologies that reduce the amount of fertilizer or fuel they use on the farm.
    4. Incentives for farmers to deploy clean energy on their farms, and to switch farm operations from diesel to electric.
  3. An ARPA-I for Industry, meanwhile, would be chartered with funding early stage R&D in carbon-free industry.  Research areas would include:
    1. Carbon-free steel – technologies that can make steel from iron ore without the use of coal.
    2. Carbon-free cement technologies.
    3. Alternative building materials that have lower carbon emissions.
    4. Carbon-free manufacturing technologies.  
    5. Better carbon-free or low-carbon plastics, lubricants, and other petrochemicals that don’t require oil extraction.

In several of these areas some options exist today, but a need for more innovation and more fundamental research – that the federal government is uniquely equipped to fund – still exists.

2-ARPA-I would fund research to decarbonize industry, starting with the largest industrial sources – steel, cement, and petrochemicals.

  1. Incentives to Deploy Carbon-Free Industrial Methods would give steel mills, manufacturers, and builders a reason to use these new, carbon-free methods while they’re still young and expensive.  These incentives would include:
    1. Tax breaks for new carbon-free industrial equipment, to reduce the cost for manufacturers to adopt these new technologies in their early stages.
    2. Tax breaks or subsidies for the buyers of carbon-free steel, cement, or other industrial goods, to bootstrap a market of customers for these new products and grow it to scale.  

As with solar and wind in Germany, scaling use of these methods in industry would bring their prices down, with a target of beating the price of existing, carbon-heavy methods.

All of the above is compatible with Green New Deal language. It’s just a matter of emphasis. We need to double down on these two areas – agriculture and industry – that are soon to be the largest sources of global carbon emissions, and the ones we have the least progress in solving.

  1. Good Policy Must be Passable

Perhaps the most important question about the Green New Deal is this – what can we actually pass?

The Green New Deal has already moved the Overton window, by elevating the conversation about climate. At the state level, in progressive states like California and New York, Democrats have solid majorities and could pass large parts of the Green New Deal that are applicable at a state level. As I argued just after Donald Trump’s election, the States are where we can most effectively push for climate action.

What about at the Federal level? Maybe the Green New Deal, by motivating the base, will lead to more electoral victories for Democrats in 2020.  Or maybe it will hurt in red states like Alabama, where Democrats are defending a Senate seat. It’s far too early to say.

Democrats don’t have any chance of reaching 60 Senate seats in 2020. They do have the option, if they win a majority and the Presidency, of eliminating the legislative filibuster (using the so-called “nuclear option”), in which case a simple majority of the House and Senate could pass as much of the Green New Deal as Democrats could achieve consensus on, without the need for any Republican legislators.

What if none of the above occurs? What if Democrats don’t get a Senate majority at all? Or do get a majority, but are unwilling to eliminate the legislative filibuster?  Could any parts of the Green New Deal pass with some Republican support?

Bipartisan Climate Policy is Possible. In Fact, It’s Here Now

Yes. Recent history shows that, while climate is a highly divisive issue in the US, clean energy and innovation have massive support on both sides of the aisle.

Consider the following:

  1. In 2015, a Republican Congress reached a bipartisan deal to extend the solar and wind tax credits (the ITC and PTC) out through 2022.
  2. In 2017, a Republican Congress, under Donald Trump, could have easily repealed or prematurely ended these tax credits. Yet the GOP left solar, wind, and electric vehicle tax credits untouched.
  3. In 2017, a Republican Congress gave clean energy research in the Department of Energy’s ARPA-E its largest budget increase since 2009.

Wait. Don’t Republicans hate clean energy?

Nope. Not at all. Americans on both sides of the aisle love solar and wind.  Solar is the most popular energy source in the US, with 76% of Americans saying that their utility should get more energy from solar. Wind is a close second, at 71%.  The third choice, natural gas, is 24 points behind solar, at 52%. And a meager 30% of Americans want more coal.

It helps that clean energy is literally everywhere in America. Solar and wind have been built out in every state. Wind power, especially, is booming in rural districts in red states. Representatives from these districts, and Republican Senators from red states like Iowa and Texas that have deployed a tremendous amount of solar and wind, have every reason to support policies that benefit clean energy.

What’s more, Americans – on both sides of the aisle – wildly support research into new technologies that can improve their lives. A whopping 85% of Americans support funding more research into renewable energy sources. Ready for the real shocker? Solid majorities in virtually every county and every congressional district in the US support more funding of research into clean energy.

Nearly as many Americans – 82% – support tax breaks for Americans who purchase energy-efficient vehicles or solar panels. And again, the support isn’t limited to blue states or blue districts. It’s overwhelmingly national.

So Americans don’t just love innovation and R&D spending. They also support incentives to deploy clean technology faster. And, in fact, those two policy levers – more research funding, and incentives to deploy clean technology – get both the most support in poll after poll, the most bipartisan support, and the most geographically consistent support.  If you want a policy proposal that that will work in red or purple states, or that can win over some Republican Senators and Representatives, clean technology research and clean technology deployment incentives are the two most likely to garner support.

What Bipartisan Policy Would Look Like

If Democrats do get both the White House a filibuster-proof congressional majority – one way or another – and get enough internal consensus, they can drive forward whatever GND policy they wish. Right now, that seems unlikely to me.

In the event that we have a Congress without that filibuster-proof majority, or with enough moderate democrats who balk at the entirety of the Green New Deal, there are still extremely effective climate policies that Congress can put in place.

First, in industry and agriculture, the four policies we mentioned already:

  1. ARPA-A to fund research into carbon-free agriculture & forestry.
  2. Clean Agriculture Incentives and subsidies to deploy carbon-free ag rapidly to farmers and drive down its price through scale.
  3. ARPA-I to fund research into carbon-free steel, cement, and manufacturing.
  4. Clean Industry Incentives and subsidies to deploy carbon-free industrial tech and drive it down in price.

Those policies in agriculture and industry have an excellent chance of getting bipartisan support. They follow a pattern of Americans being willing to invest in new science and technology R&D. And, because they benefit industrial and agricultural states and districts, by giving carrots for deploying clean industry and clean agriculture, they’re a benefit to politicians from those – often red – states that have the greatest concentration of farms and factories. That’s the exact opposite of a policy that penalized farmers or factories for their carbon emissions. You’d have a hard time getting much bipartisan support for that. Make the policy an incentive that helps farms and industry thrive, and helps them get an edge over their global competitors, and the politics completely change.

In electricity, transportation, and buildings, there are also policies – some of them counter-intuitive  – that would accelerate us towards a clean future :

  1. Continent-Wide Electricity Transmission.  It’s a common perception that renewable energy means less dependence on the grid. The opposite is true, for two reasons. First, at any given time, weather may hurt the output of solar panels or wind farms in any given area. The further away you are from that area, the less likely you are to be in the same weather pattern. Second, the sunniest parts of the US, the windiest parts of the US, and the parts of the US that need the most electricity don’t all coincide. Study after study shows that the larger an area we integrate renewables over, the more renewables we can put on the grid, and the lower the cost.

3- A nation-sized grid increases the amount of energy we can use from solar and wind, and reduces the overall cost. Source – Nature Climate Change

Long-range transmission is also remarkably efficient and low cost. High-voltage DC transmission lines can send power 2,000 miles with only 10% losses and a small additional cost. That means solar power plants in Texas could be powering New York City…an hour after the sun has gone down in New York. China understands this, and is building the world’s largest high voltage power grid, moving power from the sunniest and windiest areas in the west to the coastal population centers 3,000 km (1,860 miles) east.  In the US, meanwhile, it’s nearly impossible to build new long-range transmission – largely because of NIMBY. Congress should make it easier to get the necessary permissions to build transmission, paving the way for a grid with more and cheaper clean energy.

4- China’s Ultra High Voltage Grid moves clean energy 2,000 miles from the sunny and windy interior to the population centers on the eastern coast.  The US has nothing similar.

  1. Clear the Way for Offshore Wind. The most exciting development in wind power is building offshore. Winds blow faster and more consistently just a few miles off the coast of the US than they do almost anywhere on land. Not only does that mean offshore wind power is likely to be the cheapest wind power, it also means – because the winds are more steady – that it causes fewer intermittency problems for grid operators and is closer to being a “baseload”-like power source. Offshore wind sites are also closer to electricity demand in cities along the coast, making it easier to get power where its needed. And while solar power peaks in the sunny months of summer, wind power peaks in winter – making solar and wind great complements for each other. Offshore wind has plunged in price in Europe, reaching grid parity last summer, and is now growing faster there than wind power on land. It’s also still much smaller than on-land wind. That means that is has much farther to fall in price, and that deploying it now can bring the price down faster than with on-land wind. Unfortunately, the US is far behind in building offshore wind. A law from the 1920s and a raft of lawsuits have held offshore wind power up. Congress can and should take action to clear the way for offshore wind.
  2. Extend & Unify Solar, Wind, and Energy Storage Tax Incentives. Congress should make the 30% Investment Tax Credit for solar (the ITC) permanent. Failing that, it should extend it out to at least 2030. Wind, which has long mostly used a different tax credit called the PTC, should be moved to the same 30% tax credit and timing as solar. Energy storage – batteries and the technologies that come after them – should get the exact same tax credit, however and wherever that energy storage technology is deployed. While this tax credit may sound modest, solar and wind are now on the very edge of a tipping point.  

    Consider, for example, that late last year, a utility in Northern Indiana announced that the cheapest way for it to provide power to its customers was to go from being 65% coal powered today, to just 15% coal powered by 2023, and zero coal by 2028 – and to replace that coal with solar, wind, batteries, and flexible storage.  Let me repeat that: This utility wants to replace 50% of their power generation in just 4 years, and the rest in 5 more. And it wants to do so because solar and wind and batteries are cheaper than running their existing coal power plants. That’s a tipping point moment. And the solar and wind deployed in Indiana will lower the cost of future solar and wind deployed elsewhere. If this sort of tipping point can happen in Indiana, a deeply red state that Donald Trump won by 19 points, that isn’t all that sunny, and that has good but not amazing wind, then that tipping point can happen anywhere. Our job is to keep the pressure up.
  3. A National Renewable Portfolio Standard. 29 US states – including red states like Texas, Missouri, Iowa, and Ohio – have Renewable Portfolio Standards that mandate that a certain percentage of their electricity must come from carbon-free or renewable sources. That means 21 states don’t have such mandates. If electricity were a perfectly competitive market, solar and wind and batteries would win on price and displace coal and gas in all these states. But utilities have a number of ways to resist change, even when it makes economic sense.

5-29 US States have Renewable Portfolio Standards

The solution is for Congress to mandate a Renewable Portfolio Standard nationally, dragging the laggard states up to the standard of the rest. How high should that mandate be? The Green New Deal goal of 100% carbon free electricity by 2030 is incredibly ambitious. And it pushes us into the unknown. Beyond 70 or 80 or 90% of electricity from renewables, integration becomes increasingly difficult as periods of bad weather nation-wide cause serious problems. The technical challenges there can be overcome – perhaps through nuclear, or next-generation carbon-capturing natural-gas plants, or long-term energy storage technologies (which are being funded by ARPA-E).

Those challenges are still real enough that even a clean energy optimist like me gets nervous. A goal of 50% of electricity from carbon free sources in every state by 2030, then 80% by 2040, and 100% by 2050 would be in-line with what scientific models say we need to achieve in order to stay below 1.5 degrees Celsius of warming. And by scaling both clean energy and the technology to integrate it to high percentages of the total grid, it would drive those technologies down in price for the rest of the world, and pave the way for cleaner grids everywhere.

  1. Permanent, Uncapped, On-the-Spot Electric Vehicle Tax Credit. On transportation, we may have reached another tipping point. 2018 may have been the peak year for gasoline and diesel car sales, ever.  Electric Vehicles, while still small in number, are growing at an astounding rate, and account for all growth in the auto industry. In some areas, electric vehicles are now cheaper to own than gasoline cars on a per-mile basis. And that will become true in more and more areas as the price of batteries declines. Even so, we need to move faster. On average, a US car gets replaced when it’s around 10 years old. That means that, even if electric vehicles were 100% of new sales today, it would take around 20 years for them to replace all gasoline cars. That needs to happen faster. Congress can help.

First, for individually owned vehicles, Congress should improve the federal electric vehicle tax credit. Today’s $7,500 federal tax credit is capped at 200,000 electric vehicles per manufacturer. That’s an absurdly low number in a country that has 260 million cars on the road. General Motors CEO Mary Barra recently called for the cap to be removed. Congress ought to put electric vehicles on the same footing as solar, wind, and batteries: A 30% tax credit – like the solar ITC – with no limit on the number of vehicles its applied to would be simple, clear, and consistent. For individuals buying their own vehicles, that tax credit ought to be structured so it can be taken off the purchase price of the vehicle directly, rather than waiting for tax season.

Second, the same tax credit ought to apply to fleet operators who buy or build electric vehicles to offer rides to consumers. While the pace at which consumers buy new cars is slow, the pace at which they switch miles of transport can be far faster, as they switch some of their travel to fleets like Uber, Lyft, and whatever comes after. Those fleets, today, are mostly gasoline engine vehicles of hybrids. As electric vehicles increasingly become the cheapest per mile, those app-based transport fleets will go electric. And a typical taxi drives 70,000 miles a year, or roughly 4 times the 13,500 miles per year of a typical individually-owned car. That means each electric vehicle deployed as a taxi can have the impact of four individually owned vehicles.

Finally, Congress ought to accelerate the deployment of autonomous cars on the nation’s roads. Why? Because an autonomous vehicle, by taking out the cost of the driver, can cut the cost per mile by half. Some calculations show that an autonomous electric taxi, by 2025, could cost 35 cents per mile. That’s 1/10th of what a taxi costs, 1/5th of what a Lyft or UberX costs today, and half the cost of owning and operating your own car. That lower cost would cause even more rapid switching to electric transport fleets, as currently-owned gasoline vehicles increasingly sat unused, or saved for long-distance trips or other scenarios. Some studies find that, even at twice that price, as much as 40% of miles driven would switch to these electric fleets.

6 – Autonomous Electric Taxis could be half the cost per mile of owning and operating a gasoline car – if autonomous vehicles arrive.

Getting to those costs absolutely depends on autonomy. Today, however, autonomous driving is regulated by a hodge-podge of different laws at the State level. Congress should step in and act to standardize safety testing, unify laws between states, and accelerate the deployment of safe, cheap, efficient, electric autonomous taxi services.  Congress almost did so in 2018. It’s time to try again.

These three actions would both accelerate the deployment of electric vehicles in the US, and drive innovation in a sector where US companies are currently in the lead, and where they could be global leaders in trillion-dollar industries for decades to come.

  1. Incentives for EV Chargers – Everywhere. Deploying more electric vehicles also means a demand for more charging infrastructure.  Congress ought to create incentives to deploy electric chargers in the places they make the most sense, and to lower the cost of charging stations by scaling them.

    For individually-owned vehicles, incentives already exist to install a charger at home.  But drivers who park on the street or who live in apartment buildings without charging don’t have an easy way to use a home charger. Congress ought to create federal incentives to deploy charging stations in multi-unit buildings, in malls, at grocery stores, and so on. Congress should especially create incentives for employers to deploy charging stations for their employees at work.  Charging stations make the most sense in the locations that cars spend the most time in. And after home, the clear #2 for most vehicles is at work. In addition, vehicles driven to work are most likely to be idle during the day – when solar power is producing. Charing electric vehicles during the day both allows the US to put more total solar power to use (effectively storing it in these vehicles) and solves the problem of a lack of charging location for those who don’t have convenient charging at home.

    Similarly, if transportation is going to move more and more to electric (possibly autonomous) taxi fleets, those vehicles will need charging too. Congress ought to create incentives for that charging infrastructure to accelerate its deployment.

    More generally a report from the Smart Electric Power Alliance finds that  as electric vehicles and electric vehicle charging infrastructure spread, there’s an opportunity to use software to manage when vehicles charge, to line that charging up with both solar and with the hours of peak wind power output, allowing more renewables to be integrated onto the grid.  

7 – Electric vehicles with smart chargers could charge when solar and wind are most abundant on the grid, increasing the amount of renewable energy we can use.

  1. Tax Credits for Carbon-Free Heating and Building Efficiency. Beyond electricity and transportation, heating buildings accounts for 6% of all carbon emissions around the world, and is growing rapidly. To decarbonize the world’s economy, we need to shift from heating with natural gas (or, in the poorest parts of the world, with coal or wood) to heating with carbon-free energy. While extending tax credits for solar and wind, Congress should keep those credits consistent for passive solar heating and geothermal heating systems, and extend those tax credits to also to include switching to an electric heat pumps, and any energy efficiency improvements made to a building.

Wait, but what about?

So I didn’t list your favorite technology, policy, or issue?  Here:

  1. Nuclear.  In 2018, the US got roughly 20% of its electricity from nuclear power, or roughly twice as much as it does from solar and wind combined. That’s carbon-free electricity from already running reactors. Shutting down those reactors prematurely would be a mistake. Germany’s shutdown of their nuclear reactors led to Germany missing their goals for carbon reduction. Existing reactors – so long as they’re safe – should be kept running as long as possible, while solar and wind scale up. And indeed, there’s still quite a bit of debate about whether solar, wind, hydro, and batteries together can power 100% of the US. Some very smart scientists who care deeply about climate are skeptical that renewables can get us all the way there. I’m on the more optimistic side of this equation. Even so, let’s not tie one hand behind our back.

    New nuclear, on the other hand, is probably dead in the US and Europe. Costs are rising over time, and reactors are plagued by cost overruns and schedule delays. The US ought to continue funding research into next-generation reactors that could be built smaller, more repeatably, and hopefully one day at a lower cost. Even those reactor designs are most likely to be a fallback in case solar, wind, and batteries stop falling in price the way they have.
  2. Carbon Taxes.  I spent much of 2015 advocating for a revenue-neutral carbon tax in Washington State. I love carbon taxes. And in electricity, they can be quite powerful. As I explain elsewhere, though, outside of the electricity sector, carbon taxes are far less effective than believed. They have only a little impact on industry, almost no impact on transportation, and usually aren’t applied to agriculture. If a carbon tax magically passed Congress, I’d cheer, and it could be an effective way to fund some of the proposals here. It’s not a silver bullet, though, and it doesn’t address the hardest sectors.
  3. Carbon Capture. People mean a wide variety of things when they say “carbon capture”.  If we mean retrofitting coal power plants with equipment to capture their carbon emissions and store it, that’s probably a waste of time. Coal is economically dead, even before adding on the cost of carbon capture. On the other hand, the NetPower design for an advanced natural gas plant that has carbon capture built right in could be a great complement to solar and wind, filling in for them during wind droughts in winter. (Though keeping any sort of natural gas in use also requires that we address the serious  problem of methane leaks from natural gas wells and infrastructure.)  

    The most important type of carbon capture, though, is being able to capture carbon directly from the air. I support more R&D into high-tech ways to scrub carbon from the air. I’m also cheered to see the tax credit Congress created to encourage carbon capture. That said, overwhelmingly the most affordable ways to capture carbon, today, are the ones the Green New Deal talks about:  returning carbon to the natural environment, by enriching soils and planting trees. Enriching farm soils and planting trees cost ten times less than fancier methods of carbon capture, and could capture a billion tons of carbon a year in the US alone. What’s more, the US could make those methods even cheaper by spurring new technology – like tree-planting drones, or transparent digital markets for carbon capture – in a way that increases the adoption of carbon capture into natural ecosystems around the world.  Ultimately, we may need to draw even more carbon out of the air than soils and trees can handle.  We should do the R&D for higher tech methods that can do so, and encourage their deployment, even as we use the cheapest methods of soils and forests first.

8 – The cheapest ways to capture carbon are on the bottom of this chart – in soils and forests.

What About Climate Justice?

The Green New Deal advances a plan to fight climate change and to ensure that we do so through a just transition. Here, I think a few principles clearly apply.

  1. First, the cost of the transition shouldn’t be paid by those with the lowest income or who’ve contributed the least to the problem. In the long term, transitioning to a clean economy will make energy, transportation, and the rest of the goods we consume cheaper. If, in the short run, (when we’re using subsidies to scale out new technologies to drive their costs down) there’s any temporary increase in the cost of life’s necessities, that shouldn’t be passed on to low-income Americans. If costs for basic necessities go up, that needs to be offset by policies that buffer lower-income Americans against those changes.
  2. Second, if we need new taxes to pay for these programs, those taxes should be highly progressive. If those taxes are on income, they should come in at the higher tax brackets. This also has to inform our view of a carbon tax. Carbon taxes are, on their own, highly regressive. Lower-income Americans spend a larger fraction of their paycheck on electricity, heating, transportation, and other carbon-intensive goods than wealthier Americans do. Rural Americans, who also tend to be lower income and who have the highest rates of poverty in America, spend even more of their paycheck on transportation. So raising the price of energy, transportation, and other goods hits low-income Americans and rural Americans the hardest. If we use a carbon tax, we can offset it by sending a flat dividend check to every woman, man, and child in America. In Washington State, in our 2016 ballot initiative, we used another approach, using carbon tax revenue to boost the federal Earned Income Tax Credit – a tax credit that goes to low-income working families, and which is the closest thing to a basic income we have now.
  3. Third, we need to help Americans in the most vulnerable communities with climate resistance and climate adaptation. Whether those are communities that are vulnerable to climate-related flooding, crop losses from extreme weather, heat and drought, or to wildfires that will get worse as temperatures rise, society ought to invest in boosting the resilience of these communities, and, if necessary, in helping individuals and communities relocate to areas that are less vulnerable to climate.
  4. Fourth, massive investment in new clean energy, industry, transportation, and agriculture will pour trillions into the US economy. What’s more, it has the potential to turn the US into an exporter of new clean technology. Together, they’ll create the opportunity for potentially millions of new jobs. That opportunity ought to be open to all – to workers in dirty industries like coal who have their jobs displaced, to lower income Americans who have fewer opportunities today, and to immigrants willing to come to America and work. Job training programs, and programs to bridge the gap between the end of an old career and the start of a new one – are a win/win for America. They help us produce the labor pool to transition to this clean economy, and they provide a means for millions of Americans to uplift themselves with new, highly in-demand skills.

All of that is fully in alignment with the Green New Deal resolution.  The GND goes further, though, making the case for universal healthcare, universal higher education, universal housing, a job guarantee for all people in the United States, strengthening unions, reducing discrimination in the workplace, respect for Native American rights and sovereignty, and stopping the transfer of jobs overseas.

Many of those policies are ones I support, or at least where I support the motivations behind them. Yet I am not at all certain those policies should be coupled with climate action. Coupling a long list of liberal priorities with climate action would seem to make it harder to get the bipartisan support we’ll probably need to enact these climate policies.  That said, the Green New Deal resolution is a high level map, not a specific bill. The original New Deal wasn’t one piece of legislation – it was made up of more than 30 separate bills. Democrats should approach the Green New Deal the same way. They ought to embrace the idea that the overall effort may take multiple years and multiple Congresses to enact, and that it’s perfectly acceptable to support some parts of the Green New Deal and not others. They ought to embrace alliances and assistance – including bipartisan alliances – to pass parts of the Green New Deal where they can.

(Photo by Ira L. Black/Corbis via Getty Images)

Climate Action is the Ultimate Climate Justice
Even more importantly, though, acting on climate change itself creates a more just world. Climate change is a slow, insidious, and massive threat to human well-being. It’s also profoundly unjust. Americans may only emit 15% of carbon emissions today, but all the CO2 we’ve emitted in the past will linger in the atmosphere for roughly a century from when it was released. Add up all the carbon the US has emitted over time, and the US remains the largest cumulative emitter of greenhouse gases on the planet. We Americans are more responsible for climate change than any other nation, even those with many times our population.

Meanwhile, two billion people live in countries that have emitted the least carbon dioxide over history – the poorest countries on planet earth – which are also the countries where people are likely to suffer the most from climate change. Climate change itself is a deep inequity. The most just thing we can do is to address climate change as rapidly as possible, and to produce and spread the tools that also boost climate resilience around the developing world. Indeed, most of the benefits of fighting climate change don’t go to Americans at all. Americans do benefit. But the largest benefits of fighting climate change go to the billions around the world who have the fewest resources and who live in the nations with the greatest vulnerability.
Lower income Americans also stand to suffer more from climate change than do wealthier Americans. A lower-income American in Detroit isn’t as vulnerable as a subsistence farmer in Botswana – not by a long shot. At the same time, it’s hard to deny that Katrina, for example, hit the poor of New Orleans harder than it did the rich. Wealthier Americans can relocate more easily, can pay energy bills more easily, can rebuild from climate disasters more easily. And here again, the most just thing we can do is to act on climate, as rapidly as possible.

Should we find ways to use the fight against climate change to also address the long history of inequality and injustice, and the differences in wealth and income that exist in the US? If so, should we stop there? Climate change is global. Carbon emissions and the harm they cause know no national borders. The harm of American (and European, and more recently Chinese) carbon emissions will fall most heavily on the poor of the developing world. Should climate policy aim to decarbonize the world as rapidly as possible? Or should it aim to decarbonize and address other global ills?

For me, the answer is clear. Climate change itself is so unjust, so lopsided in who has benefited from burning fossil fuels and who will suffer the most from that combustion, that addressing climate change is, itself, to help undo an injustice – one that threatens billions of people around the world.

Let’s tackle all the world’s other problems too. As we do so, let’s keep in mind that addressing climate change, even if we don’t succeed at everything else, is a major, vital, and necessary step towards a more just world.  

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VW’s Electrify America will use Tesla battery packs to lower charging costs

Electrify America, the entity set up by Volkswagen as part of its settlement with U.S. regulators over its diesel emissions cheating scandal, plans to install Tesla Powerpack battery systems at more than 100 of its electric vehicle charging stations this year.

Electrify America aims to use the Tesla Powerpacks to offset the cost of charging for customers. Owners of electric vehicles face high costs if they charge their vehicles during peak demand hours. The Tesla Powerpack battery systems store energy drawn from the grid during off-peak hours. That stored energy can then be used during peak demand hours when charging costs are higher. Each site will consist of a 210 kW battery system with roughly 350 kWh of capacity, according to Electrify America.

“Our stations are offering some of the most technologically advanced charging that is available,” Electrify America CEO Giovanni Palazzo said in a statement. “With our chargers offering high power levels, it makes sense for us to use batteries at our most high demand stations for peak shaving to operate more efficiently. Tesla’s Powerpack system is a natural fit given their global expertise in both battery storage development and EV charging.”

Electrify America has committed to investing $2 billion over 10 years in clean energy infrastructure and education. The VW unit expects to have 484 electric vehicle charging stations with more than 2,000 charging dispensers installed or under construction by July 1.

The company will begin the next phase of installations this summer.

Electrify America’s bet on Tesla battery systems illustrates the deep need for electric vehicle charging infrastructure that is low cost, easy to access and as fast as possible. It’s not enough to simply dot highways and urban areas with public chargers.

The deal also represents a small, yet possibly fruitful area for Tesla as it tries to grow its energy storage business.

Electrify America says it has designed its sites and electrical systems to enable future upgrades. Fast charging is part of that vision. The Electrify America charging system features liquid cooled-cable 350 kW chargers.  These chargers — which currently no EV can actually use — can theoretically charge a vehicle at speeds up to 20 miles per minute – seven times faster than today’s most commonly used 50 kW fast chargers.

Porsche Taycan, the automaker’s first all-electric vehicle, is designed to have an 800-volt battery that can take a 350 kW charge. The Taycan is coming out late this year.

Electrify America’s charging locations will have an average of five charging dispensers, with some having as many as 10. The highway stations will have a minimum of two 350 kW chargers per site, with additional chargers delivering up to 150 kW.

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WHILL raises $45M to help people with disabilities get around airports and other large venues

WHILL, the startup known for creating sleek, high-tech personal mobility devices, announced today that it has closed a $45 million Series C. The funding will be used for expanding into new international markets, as well as developing new products for large venues, including airports and “last-mile” sidewalk transportation. The round’s lead investors were SBI Investment, Daiwa Securities Group and WHIZ Partners, with participation from returning investors INCJ, Eight Road Ventures, MSIVC, Nippon Venture Capital, DG Incubation and Mizuho Capital.

This brings WHILL’s total funding so far to about $80 million. Founded in Tokyo in 2012, WHILL plans to open a branch in the European Union and enter 10 new European countries. It also plans to start working with partners on developing autonomous capabilities for its mobility devices, senior marketing manager Jeff Yoshioka told TechCrunch. The company will build its own sensors and cameras to use in its “mobility as a service” program, which allows users to control vehicles and call customer service through a mobile app.

One of WHILL’s biggest projects is developing an autonomous personal mobility device system for airports. Yoshioka says that an estimated 20 million people request wheelchairs in U.S. airports each year. This means they need to wait for an airline employee to bring a wheelchair to them and then push them from check-in to their gates. At the same time, it doesn’t give users a lot of flexibility.

The system that WHILL has in mind, on the other hand, would allow individuals to use an app to summon a mobility device over to them. Then they can go wherever they want — coffee shops, restrooms, shops — before heading to the gate without an assistant. Once they are done with the device, it will return to a docking station on its own. WHILL has already begun testing a similar program at Tokyo International Airport in partnership with Panasonic.

Yoshioka says WHILL will most likely pursue distribution partnerships with U.S. airlines, which are responsible for supplying and maintaining the wheelchair systems in American airports, and airports to build the necessary infrastructure.

Along with airports, WHILL wants to bring its technology to other large venues, including shopping malls and sports arenas, as well as create a system for last-mile transportation. Yoshioka notes that “there are already a lot of companies out there like LimeBike and MoBike that offer bikes and electric scooters, but there’s nothing out there for people with disabilities who can’t use those devices.”

Instead, many rely on Ubers or public transportation even for short distances. Like the airport system, WHILL’s last-mile sidewalk system will use autonomous electric vehicles that can be called to users with an app. It faces unique challenges, however, because WHILL’s devices are larger and more expensive than bikes or electric scooters, so the company needs to find safe places to dock them that are still accessible to people with limited mobility. Yoshioka says WHILL likely will focus on partnering with commercial properties to create indoor docking stations.

WHILL’s largest market is still Japan, where it has between 4,000 to 5,000 resellers. In its home market, WHILL’s devices are subsidized by the government and also available for rent. In the U.S., however, many customers need to purchase devices out-of-pocket. To make their products more accessible, WHILL launched the less expensive Model Ci (called the Model C in Europe and Japan) earlier this year. While there is still plenty of room for innovation in the wheelchair market, the Model Ci and other WHILL products compete with devices like the iBot, which can climb stairs, and the Trackchair, designed for off-road use. WHILL’s current products can’t climb stairs, but they do have the advantage of being designed for both indoor and outdoor use, giving users more flexibility, says Yoshioka.

The company also expects demand for its products to grow thanks to a rapidly aging world population, citing statistics that show there are expected to be more than 2.1 billion people over the age of 60 by 2050, up from about 900 million last year.

“We don’t necessarily see [the other companies] as direct competitors. They definitely do impact sales, because people might want something that climbs stairs instead of having better outdoor capabilities, but I think overall it’s very beneficial for the industry,” Yoshioka adds. “As a company that’s trying to disrupt the industry, it’s nice to have them around because it pushes the industry forward and opens eyes for other manufacturers.”

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Lucid Motors secures $1 billion from Saudi wealth fund to launch the Air

Saudi Arabia’s sovereign wealth fund is investing $1 billion into Lucid Motors, capital that will finance the commercial launch of the startup’s first electric vehicle.

The agreement comes just six weeks after Tesla CEO Elon Musk tweeted that he was considering taking Tesla private at $420 a share and had secured the proper funding to make the leap. Musk suggested that Saudi’s wealth fund, which already owns almost 5 percent of Tesla stock, was interested in backing the company’s move from public to private.

Tesla’s board and Musk have since quashed those plans to go private.

The investment came at a crucial moment for Lucid Motors, which has struggled recently to raise the funds needed to produce its luxury EV, the Lucid Air. The funding will be used to complete engineering development and testing of the Lucid Air, construct its factory in Casa Grande, Arizona, begin the global rollout of its retail strategy starting in North America and enter production, the company said.

Lucid Motors was founded 10 years ago with a different name and mission. The company, called  Atieva at the time, was focused on developing electric car battery technology. It then shifted to producing electric cars and changed its name in 2016.

The company seemed to have momentum at the time. Lucid Motors had successfully raised money, unveiled the Air, announced plans to build a $700 million factory in Arizona, signed a deal with Samsung SDI to supply it with lithium-ion batteries and moved into spacious new digs. But building a factory is expensive, and the company fell silent for nearly a year as it sought funding to produce the Air.

It’s also a notable investment for the Saudi kingdom, which under its Vision 2030 plan is seeking to diversify its economy away from fossil fuels. In the past year, the Saudi Public Investment Fund has invested in renewable energy, established and developed recycling companies and energy efficiency services, the kingdom noted in a release.

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