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Omicron Variant Of Coronavirus Spreading Rapidly Across U.S. And Globally; Health Experts Warn Of Hospitals Being Overwhelmed Due To Omicron Variant; Hospitalizations For Children Infected With COVID- 19 Increase; Superior, Colorado, Mayor Clint Folsom Is Interviewed On Recovery Efforts After Large Fires Destroy Several Houses; New Ferry Runs Solely On Hydrogen; Ongoing Inflation May Cause Federal Reserve To Increase Interest Rates. Aired 2-3p ET

Aired January 01, 2022 - 14:00   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

[14:00:03]

FREDRICKA WHITFIELD, CNN ANCHOR: Hello, again everyone, and welcome to the new year, 2022. Thanks so much for joining me. I'm Fredricka Whitfield.

A pandemic-exhausted nation starts the new year with the unrelenting headache and concerns of surging case numbers. Holiday air travelers are feeling the stress. Airlines are struggling with sick-outs are canceling more flights today, and that's on top of the 13,000 flights canceled since Christmas Eve.

Many American parents are also feeling rather anxious this weekend over their children's return to the classroom on Monday. Some school districts facing a spike in child hospitalizations have already announced at least a partial transition to online learning. The U.S. is in the grips of a record-shattering surge of new infections. The seven-day average of new cases has soared to 386,000, the highest of the entire pandemic.

And many experts warn it will only get worse. In only one state, Maine, cases are down. In Iowa, well, it's holding steady. But the vast majority of the country seen in dark red on this map is struggling with a surge of 50 percent or more in new infections. Hospitalizations and deaths are lower than their 2021 peaks, but the avalanche of new cases has the CDC predicting that more than 44,000 people could die of COVID-19 in the next four weeks.

Let's start with Polo Sandoval on the big picture.

(BEGIN VIDEO TAPE)

POLO SANDOVAL, CNN CORRESPONDENT: The U.S. is shattering records this week with an average of about 356,000 COVID infections reported every day in the past week, according to Johns Hopkins University. As the world rang in the New Year, the latest surge is sweeping across the U.S., pushing cases and hospitalizations to unprecedented levels. Experts warning a turning point could be weeks away.

DR. ANTHONY FAUCI, WHITE HOUSE CHIEF MEDICAL ADVISER: Given the size of our country and the diversity of vaccination versus non- vaccination, that it likely will be more than a couple of weeks, probably by the end of January.

SANDOVAL: Roughly 62 percent of the country is fully vaccinated according to the U.S. centers for disease control and prevention. Only about 33 percent of fully vaccinated adults have gotten boosters, which experts say are critical in protecting against severe illness from the variants. The Omicron variant, the most contagious strain, rapidly spreading across the world.

In the U.S., states are seeing their highest case and hospitalization numbers ever. New York reported more than 76,500 new cases on Thursday, the governor's office said, breaking its single-day record. Hospitalizations hit about 8,000, an eight percent spike from the day before. Hospitalizations have risen almost 20 percent since Monday.

DR. MICHAEL OSTERHOLM, DIRECTOR, CENTER FOR INFECTIOUS DISEASE RESEARCH AND POLICY AT UNIVERSITY OF MINNESOTA: Clearly, New York and Washington, D.C. are ahead of the curve, but not by much. So expect that in the next three to four weeks we're going to see everyone really hit with this.

SANDOVAL: New Jersey identified more than 28,000 new COVID-19 cases via PCR testing, Governor Phil Murphy said on Thursday. The number of positive cases likely higher due to at-home testing, he added. Some governors calling on the National Guard. Ohio Governor Mike DeWine deploying 1,250 National Guard troops, he said on the day the state reported its highest hospitalization numbers.

Georgia also deployed 200 troops the same week that six major health systems saw 100 to 200 percent increases in hospitalizations, Governor Brian Kemp said. And New York doubling its National Guard deployment to 100 and preparing for 80 guardsmen to undergo emergency medical training next month, according to the governor.

With more virus spreading in the country more than 30 colleges and universities are changing the start of their spring semesters, and more children are getting sick and being hospitalized than at any other point in the pandemic just as their school will be navigating reopening after the holidays.

FAUCI: Quantitatively, you're having so many more people, including children, who are getting infected, and even though hospitalization among children is much, much lower on a percentage basis than hospitalizations for adults, particularly elderly individuals. However, when you have such a large volume of infections among children, even with a low level of rate of infection, you're going to still see a lot more children who get hospitalized.

SANDOVAL: On a positive note, studies and reports on the Omicron variant continue to suggest it may not be as lethal as Delta, even as it spreads quickly.

(END VIDEO TAPE)

SANDOVAL (on camera): And disruptions to daily life continue in the form of flight cancellations. Yes, severe weather is still an issue, according to several airlines in certain parts of the country, but so are infections among flight crews and also other airline employees. Just look at these latest numbers right now, Fred, showing that at least 2,300 flights, in fact, over 2,300 flights canceled today. That now brings the total to just over 13,000 since Christmas.

[14:05:06]

And the FAA has warned things are likely going to continue to get worse. Possibly after the holiday rush there could be a reset for the airlines, according to industry experts.

WHITFIELD: My goodness, lots of headaches this weekend. Polo Sandoval, thank you so much.

Health officials are also dealing with an alarming spike in children being hospitalized for COVID-19. The CDC says an average of 378 of kids are being admitted on any given day. That's a pandemic era record and a 66 percent jump from the previous week.

CNN's Nadia Romero joining me from Atlanta. So the children's health care system is struggling to handle the surge of patients, namely these young people. What are health officials saying? What are their options?

NADIA ROMERO, CNN NATIONAL CORRESPONDENT: Well, really, Fredricka, they've been trying to say the same thing for a long time now, is to try to mitigate the spread -- wear a mask, socially distance. They were hoping that a lot of people would not gather for the New Year's Eve holiday, and that they would get their kids vaccinated if they were eligible to get the vaccine.

We're in the new year. People love to say new year, new you, new me. It's the same old, same old. We're still dealing with COVID-19, and now we're talking about the impact on our children and if they're going to be going back to school in person on Monday.

So let's look at the numbers here in Georgia. You can see just the dramatic increase from November 28th compared to New Year's Eve, just yesterday, of the cases, the average moving cases over a seven-day period for kids getting COVID-19 in the state of Georgia. And then when you take a look at the hospitalizations, that's going up as well.

Now, listen to what one health expert says that parents need to know about this Omicron variant and how it's impacting their children.

(BEGIN VIDEO CLIP)

DR. GLENN BUDNICK, CHAIRMAN OF PEDIATRICS, RELIANCE MEDICAL GROUP: It is extremely contagious, and what you're seeing is that the population of children zero to five has no immunizations at all, and between five and 16, the immunizations have really just come out.

So there's a very low antibody level, and this group is very susceptible to catching COVID. So the good news for parents is that Omicron is milder in children, and the bad news is it's very contagious, and we're going to see a lot of children sick over the next two to four weeks.

(END VIDEO CLIP)

ROMERO: Yes, so that is the good and the bad of what we're seeing, not just here in Georgia, but really nationwide, seeing those cases increase. People working from home. You hear my dog in the background because we're trying to mitigate the spread, Fred.

(LAUGHTER)

WHITFIELD: The big dog has something to say about all of this. He's frustrated, too. I get it. Nadia Romero, thank you so much.

I want to bring in now Dr. Ester Choo. She's a professor at Emergency Medicine at Oregon Health and Science University. Dr. Choo, so good to see you. We're all frustrated, even the four-legged ones. So we're seeing, very seriously, some consecutive days of record numbers, dangerous numbers. And now people have had these holiday gatherings as well. Is it your expectation that it is going to get worse before it gets better?

DR. ESTHER CHOO, PROFESSOR OF EMERGENCY MEDICINE, OREGON HEALTH AND SCIENCE UNIVERSITY: Happy New Year, Fred. Yes, it's most certainly going to get worse. I think we're in for a really, really rough January. And I know there is some comfort that people are taking in saying, well, it seems to be this percentage less severe than previous strains. But what we have to understand is that our health system is in a very different place than we were in previous surges.

We have extremely high numbers of just lost health care workers. We've lost at least 20 percent of our health care workforce, probably more. This strain is so infectious that I think all of us know many, many colleagues who are currently infected or have symptoms and are under quarantine. And so the infectivity of Omicron itself has really shrunk our workforce.

So almost no matter what, we're in for a tough January where we're going to be very limited in what we're able to do for people, even as we see many, many patients of all ages in the hospital.

WHITFIELD: And so I'm wondering, based on what you've been observing, then, how much of this is driven by the unvaccinated or this highly transmissible variant?

CHOO: Yes, this continues to be something that is, at least the severe disease, is almost exclusively among the unvaccinated. The exception is people who are not fully vaccinated, and largely people who have underlying conditions that make them more susceptible to getting severely ill with COVID.

And so it's not that people who are vaccinated and have even received their third dose aren't getting COVID. The vaccines don't prevent us necessarily from an infection. They prevent us from getting seriously ill.

[14:10:08] And so we're just seeing this huge skew in the hospitalizations, and there really is a gradation that many of my colleagues are seeing, where we're still seeing people come in who are vaccinated and boosted, but it seems to be very mild in people who have that third dose.

A little more symptomatic if you just had a primary series, more severe if you got partially vaccinated, and then the very, very sick people who are so uncomfortable when they're coming in, are requiring hospitalization, ICU, ventilatory support, those are by and large the unvaccinated. That's true for all ages.

WHITFIELD: So now what are your concerns as families are grappling with -- school starts in many districts on Monday, and a lot of folks have visited family members, have been traveling over the holidays. What do you believe is ahead for all of us?

CHOO: Yes, I'm in conversations with a lot of schools about how to make re-entry safe, and I think it is going to be bumpy. A lot of schools are putting in place testing requirements to return. That is reasonable, because there's been so much transmission during travel as we're seeing with the airlines closing because of positive cases.

And so I think the issue is that testing is so hard to get, that I know that some schools are delaying simply because they can't acquire the necessary testing in their whole population to come back. And I think in other cases, schools will do testing this weekend, they'll require testing for readmission on Monday, and what they'll uncover is a lot of positive cases, and they will have to consider whether individual classes or the entire school can open safely.

I think all of us in public health are highly motivated to keep schools open. That is, we have seen what it is to keep our kids home for extended periods of time. However, I think we are expecting Omicron to require some school delays or closures. Hopefully those will be brief and self-limited, what we're calling a circuit breaker in order to just to try to interpret these rapid chains of transmission.

WHITFIELD: And with this Omicron variant being really so virulent, or really passing through our populations here in the U.S. so quickly, do you feel like the U.S. is going to follow suit of South Africa, which appears to have hit its peak and then numbers decline quickly?

CHOO: We hope so. There are some caveats there, because South Africa is in summer right now. We keep on forgetting. And so we also had our -- we had much milder COVID over the summer. And I think when people are largely outdoors, not gathering inside in close quarters and in different air conditions, I just think they are kind of a different scenario.

And we're seeing even in percentage of disease severity, there's so many differences across countries. South Africa had much less severe disease and hospitalizations than, say, Great Britain, which was a little ahead of us. And so I think there are just many environmental, circumstantial things that make the same disease play out differently across countries.

So we are certainly hoping that is true, just to give us some glimmer of light on the other end of January. But I think it remains to be seen whether we'll have exactly that same quick up peak and downslope.

WHITFIELD: We'll try to all be hopeful and careful. That's the combo we need, right?

CHOO: Please.

WHITFIELD: Yes. Dr. Esther Choo, good to see you. Happy New Year.

CHOO: Happy New Year, Fred.

WHITFIELD: All right, snow now covering hundreds of homes that burned to the ground in Colorado. And as firefighters put out hotspots, at least two people are missing. We'll have the latest next.

Plus, an update on the severe weather threatening millions of people across the country today. You're in the CNN Newsroom.

(COMMERCIAL BREAK)

[14:16:42]

WHITFIELD: The New Year kicked off with a lot of active weather across the country. Winter weather advisories and warnings are in place for about 40 million people, stretching all the way from Arizona to Maine. Joining me right now, meteorologist Gene Norman. Gene, how much snow are certain places expecting? That's a pretty wide band we're looking at right there.

GENE NORMAN, CNN METEOROLOGIST: It sure is, Fred. Anywhere from, let's say, sections of northern Missouri over into Michigan. Rob, if you can hear me, you need to advance my graphics for me. I'm having a clicker issue. But we're looking at the potential for anywhere from, let's say, four to six inches in places like Chicago. That's where a winter storm warning is in effect. And you can see the purple and the pink shading areas indicating where there are watches and warnings in effect.

The snow continues to move its way into sections of Chicago right now. They're getting the flakes flying. That's just one part of this, Fred, because it's a two-headed monster, if you will. We've got warm air, record warm temperatures coming out of the south, colliding with bitter cold air coming out of the north. And along the battle line, that's where the active weather is.

You have snow to the north, but to the south, we're really concerned about severe weather today. On the first day of a brand new year, some of the places still recovering from the devastating tornadoes back on December 10th could get hit again. Tornado watches in effect right now, which you see shaded in red.

And then let's show you what's happening right now, because there is at least one active tornado warning, or there was. It just disappeared, just to the south of Nashville. But, again, potentially dangerous weather expected there.

And as we take a look at what could happen in the overnight hours, we're looking at some strong storms, the potential for large tornadoes that could develop in this area. So something that we're watching for very, very carefully.

And as we head into the afternoon and evening hours, that's when it's going to get the worst. So when people are perhaps relaxed on a Saturday evening, first day of the New Year, it could be rough in this part of the country, Fred. So especially after midnight, dangerous storms in northern Alabama, northern Georgia, and we'll be tracking it here in the CNN weather center.

WHITFIELD: All so dicey, but we'll continue to stay tuned to you, Gene Norman. Thank you so much.

A raging wildfire, well, it destroyed hundreds of homes in Colorado, and now what's left of them, covered by snow. A live update from the scene next.

(COMMERCIAL BREAK)

[14:22:45]

WHITFIELD: At least two people are missing after wildfires raced through the Boulder area. The fires have also left many residents to start the new year without their homes after hundreds of buildings were damaged or destroyed. Some residents say they had just minutes to escape before these wildfires ripped through their neighborhoods.

And today, snow has fallen on that same area, offering some relief for emergency workers as they try to deal with the hotspots. CNN's Natasha Chen joining me now from Superior, Colorado. So you've been talking to families there. Give me some idea of how they're managing.

NATASHA CHEN, CNN NATIONAL CORRESPONDENT: Yes, Fred, this is a really difficult start to the New Year for both the Superior community and the Louisville community. So many homes are just burned to the ground, standing next to other homes that were untouched. It's just an example of how randomly these fast-moving winds darted through these neighborhoods.

We talked to one man who lives just over the ridge where we're standing. It took him two-and-a-half to travel a quarter mile with his kids and the dog in the car, sometimes having to drive over sidewalks and through people's yards just to escape faster. And I also spoke to one family in Louisville, the Delaware family, who described to me what those moments were like when they saw the flames coming.

(BEGIN VIDEO CLIP)

PRESCOTT DELAWARE, LOST HOME IN COLORADO WILDFIRES: We saw flames, and they were probably, I want to say 2,000 feet while they were in the open space, but with like 100 mile an hour winds. And as we were coming down from the open space, we were driving down from Davidson Mesa, and we saw flames probably 400 feet from the car as we were trying to get back home and get the dogs and get the stuff.

JUDY DELAWARE, LOST HOME IN COLORADO WILDFIRES: It felt -- like, like, like -- I don't know how to say it. I don't know how to get it out. It just felt like a punch to the stomach, and this can't be real. It's just so surreal to be able to even fathom everything you own is just gone.

(END VIDEO CLIP)

CHEN: She told me that she always looks behind her when she leaves the house to see if the garage door is closed, the doors are all closed.

[14:25:00]

But his time when they drove away, she did not look back. And she said it was a house filled with love, and they'll rebuild in the same spot, fill that with love, too. It's a really difficult time for residents, but also for the leaders of these communities. And I'm here with the Superior mayor, and I know, Fred, you have some questions for him.

WHITFIELD: Sure do. Mr. Mayor, good to see you. So sorry that you and your community are dealing with this. I cannot imagine what you all were experiencing. Can you recall exactly where you were when these fires started sweeping through, and how you were able to measure how quickly it was making its way through these communities?

CLINT FOLSOM, MAYOR OF SUPERIOR, COLORADO: Yes, Fred, thank you very much. I was actually out of town when the calls first started coming in. And I immediately returned to town as quickly as I could. Our family is doing evacuations independently, and upon arrival in town, I met up with the town manager and sheriff sergeant, and we started doing a tour of the town for the next couple of hours.

And it was traumatic and devastating. The fire storm was still going on at that time. Houses were exploding all around us as we were driving through the different areas. And so, of course, today is a completely different scene. So it's been a whirlwind of activity.

WHITFIELD: It's extraordinary. There really is no reference point, I know, for any of you in terms of an experience like this before. You've got such extremities taking place, you've got a drought, and then suddenly you've got a wildfire sweeping through, and now you've got this snowfall.

What are some of the stories that you're hearing from some of your residents there about how they were able to mobilize? Because when you look at this devastation, it's extraordinary to even think that people were able to get out alive.

FOLSOM: Really, it's been -- the stories I'm hearing are really traumatic. It was -- these wind events are not unusual in Superior, but the wind event combined with an active fire, just it gives you minutes and in some cases seconds. People were running out, running out ahead of the fire. Some people didn't even get back to get their personal belongings in their houses and have now learned that they're gone. So it was a very tough event for so many people. WHITFIELD: It is heartbreaking just seeing these images. Do you have

any idea what kind of efforts -- or what can you tell us about the efforts underway to look for any people who may be unaccounted for?

FOLSOM: That's right, we've been very fortunate to hear, thus far, that there have been no fatalities. But part of this recovery effort is having crews go to each property, and we've got hundreds of them, to shut off the gas, shut off the water, make the power safe, at these burned-out locations, and also search for any fatalities.

And now we've got a nice layer of snow on top of all of these scenes, and that's going to slow down those efforts. So I understand that people want to get back into these areas to check on their properties, but I just ask for everybody's patience as much as possible as crews are continuing to do their hard work in making these areas safe.

WHITFIELD: Yes, so on one hand you've got this snow, this blanket of snow that might be helping to take care of those smoldering fires, or remnants of it, but at the same time it certainly hampers any efforts of your first responders. Do you have a number on how many homes and properties were destroyed?

FOLSOM: I've heard numbers from 600 to the newspaper this morning said 1,000. So it's a significant number of homes. I think the official count, that's part of this recovery effort, is cataloging and getting exact numbers. And so I imagine those numbers will change over time. But we're talking significant numbers of homes, yes.

WHITFIELD: It's extraordinary. And where are people going? They've lost their homes, they've lost everything. Where now?

FOLSOM: Yes, the immediate response was to just get out of the way of the fire, and people went to friends, to relatives, to hotels, to shelters.

[14:30:03]

And then over the last two days, people have kind of been reshuffling. Our own family, we've shuffled between multiple hotels. And I think everybody's situation is a little different, and they're shuffling around.

On the wider scale, I met with the governor yesterday, Governor Polis, and Senator Michael Bennet from Colorado, and Representative Joe Neguse. And they were offering their support at the state level and the federal level to work on this housing need.

We've got a very tight housing market in Colorado, did before this situation, and that is going to be a real challenge because we've got literally hundreds of households that have nowhere to live, and their options are limited.

So the federal government has provided some commitments that they're going to help us, and we look forward to working with them, and really appreciate their assistance, and all of the partner agencies that have stepped in. Superior is a four-square mile town, but just to see the level of response to such a small town has been very gratifying. So we really appreciate everyone's contributions.

WHITFIELD: Mayor, did I hear you correctly, you and some of your family members also shuffling in and out of hotels?

FOLSOM: We are. Our home, our personal home survived. However, my mother's home was also in the original part of Superior, it was burned up. My sister-in-law and her husband had just built a home in the original part of superior, it burned up. They had a second rental property in Superior, it burned out.

So three out of four of our family members' homes have burned. Our home is located in an area that has not been opened back up to access yet because we've got burned homes in the vicinity. So, yes, we are shuffling around as well.

WHITFIELD: I'm so sorry to hear that. My heart goes out to all of you there who are going through unimaginable loss. What an experience. Mayor Clint Folsom, thank you so much. All the best to you.

FOLSOM: Thank you very much.

The Omicron variant is spreading faster than other versions of COVID. We'll show you how countries around the world are working to get it under control. You're in the CNN Newsroom.

(COMMERCIAL BREAK)

[14:35:46]

WHITFIELD: As we enter 2022, the whole world is facing the same challenge, the highly transmissible Omicron variant. The early data suggests it's less severe, but it spreads faster and more widely than anything we've seen in this pandemic. And that has governments around the world scrambling to react. Our team of international correspondents has this global response.

(BEGIN VIDEO TAPE)

IVAN WATSON, CNN SENIOR INTERNATIONAL CORRESPONDENT: I'm Ivan Watson in Hong Kong, where authorities had a grim warning to residents on New Year's Eve. They said for the first time in nearly three months, there have been two cases of local transmission of COVID, both of the Omicron variant. And it's being blamed on an air crew member of the Cathay Pacific Airline, who they accuse of breaking at-home orders and going to dine in a restaurant where the cases appear to have spread.

Now, they're calling for more severe quarantine restrictions on air crew, so Cathay Pacific is suspending, for at least a week, long-haul cargo flights, saying that this is going to cause severe disruptions to the supply chain. Meanwhile, the government is urging the population to get a third vaccine booster shot.

SALMA ABDELAZIZ, CNN REPORTER: I'm Salma Abdelaziz in London. As Europe rang in the New Year, the Omicron variant overwhelmingly shadowed celebrations. Prime Minister Boris Johnson used his year-end message to urge people to be careful about their gatherings on New Year's Eve. He called on people to get tested if they can before going to any social gatherings, and to be mindful of ventilation.

In France, another country seeing record-breaking infection rates, the planned fireworks of the Champs-Elysees did not happen this year. Masks will be mandated starting December 31st on the streets of Paris outdoors, due to the surge in cases.

Germany as well canceling fireworks displays in Berlin and limiting social gatherings across the region. Health officials warning everyone to be cautious.

ELLIOTT GOTKINE, JOURNALIST: I'm Elliott Gotkine in Tel Aviv, where Israel is rolling out a fourth shot of the COVID vaccines for people with suppressed immune systems. Health Ministry Director General Nachman Ash gave the go-ahead on Thursday evening, but he stopped short of approving it for the over 60s and health workers, at least for now.

In a statement, Prime Minister Naftali Bennett said that Israel will lead the way in administering a fourth vaccine to the Israeli people, adding that Israel's strategy for overcoming the Omicron variant is clear, the greater the wave, the greater the protection we will need to overcome it. That wave is reaching ever greater heights.

On Thursday the country recorded almost 5,000 new cases. That's the most since September. Just a couple of weeks ago, Israel was recording fewer than 1,000 cases per day. The R coefficient, that's the number of people infected by each COVID sufferer, climbed to 1.62, a level not seen since June.

DAVID MCKENZIE, CNN INTERNATIONAL CORRESPONDENT: I'm David McKenzie in Cape Town. Authorities here say the country may have passed the wave of Omicron dominated infections. In fact, they are reducing the amount of restrictions in time for New Year, including ending a many months' long curfew.

There's also new research coming out from private hospitals showing that in the early stages of this wave, people were far less sicker, especially around the issues of acute respiratory illness, again indicating, at least anecdotally, that Omicron in this country has been less severe.

Thanks to our correspondents around the globe.

(END VIDEO TAPE)

WHITFIELD: Thanks to our correspondents around the glove.

Singer-songwriters James Taylor and Carole King's 50-year personal friendship and professional partnership have had a remarkable impact on American music. And now in this exclusive joint interview recorded for the new CNN film "Carole King and James Taylor, Just Call Out My Name," the musicians discuss the unique experience of performing together. Here's a look.

(BEGIN VIDEO CLIP) CAROLE KING, SINGER/SONGWRITER: The connection with the audience, whether you're playing for one person or five people or 10, or actually it does translate to 15,000 in an arena, you're playing for one collective consciousness.

[14:40:03]

When we go out there to play for the people in the audience, we get a lot of love. But the reason we get a lot of love is because we are playing the soundtrack of their lives. And they come to the show, and they hear that music, and it really becomes a lovefest. I know a lot of performance think it's about them, too.

You can tell which ones they are, and sometimes people don't care. They like the spectacle or whatever. But the thing about our show that works is that we know that, and we realize that. And when people come to see our shows, they know that they are getting our all and our best every time.

JAMES TAYLOR, SINGER/SONGWRITER: There's a definite energy to it, and when it, when it happens genuinely, there's nothing like it.

(END VIDEO CLIP)

WHITFIELD: The all-new CNN film "Carole King and James Taylor, Just Call Out My Name" premieres tomorrow at 9:00 p.m. only on CNN.

A new type of ferry could lead to a sea change for the climate crisis. It runs on hydrogen. How big a difference could it make? I'll ask two of the people behind it next.

(COMMERCIAL BREAK)

WHITFIELD: A new ferry is the first of its kind, and it's making waves against the climate crisis. It's called "Sea Change," and it's a hydrogen-powered vessel hoping to cause a ripple effect in an industry notorious for its carbon emissions.

[14:45:00]

With me now to discuss are Ron Wille and Jeff Sokolik. Ron is the president and COO of All American Marine, and Jeff is an engineer and project manager with All American Marine. Good to see both of you.

RON WILLE, PRESIDENT AND COO, ALL AMERICAN MARINE: Thank you very much.

WHITFIELD: So, Ron, you first. Explain to us what is this Sea Change all about?

WILLE: Well, Fredricka, it's the first commercial ferry in the world powered 100 percent by hydrogen fuel cells, and the big difference is when you run a hydrogen fuel-cell, there's no emissions, there's no knocks, there's no socks, there's no particulates. So it's 100 percent clean. The only byproduct that you get when the vessel is operating is hot water. WHITFIELD: And then, Jeff, you happen to be standing in front of what

some of these fuel-cells? Explain to us what's behind you and how it works.

JEFF SOKOLIK, PROJECT MANAGER, ALL AMERICAN MARINE: Sure. Yes, the fuel-cells behind me are what make the power. They bring in the hydrogen gas, and then use some special membranes that strip off the electrons, use them to do the work of pushing the boat through the water.

Those recombine on the other end of membranes with the oxygen that's in the air and create water. And so it's a very clean process, a very simple one, very few moving parts, very reliable. And it really works very well for when you need a lot of electricity in a mobile application.

WHITFIELD: So, Ron, the ride is cleaner. Now, for those who would be on the ride, on this ferry, what are they going to be experiencing? Will it be any different from what they're accustomed to when riding on a ferry or putting their vehicles on a ferry? Or is this strictly a person passenger ferry, or what?

WILLE: Absolutely. It is a passenger-only ferry, and it's meant to be deployed in San Francisco this spring. It is going to be different. It's going to provide a unique passenger experience because there is no diesel noise, no engine noise, there's no fumes. And it's really the first step towards decarbonizing the maritime industry. We feel strongly that this technology will have a global impact. It's not just about this ferry. It's about a viable future for the maritime industry and how people, in this case, will commute to work in the San Francisco Bay Area.

WHITFIELD: And so, Ron, it is likely to be more expensive, right? Because if it weren't, then everybody would have been doing it already. So besides it being a cleaner, more environmentally conscious enterprise, how do you sell other municipalities or other businesses to get on board and invest in this?

WILLE: Well, it certainly is the first of its kind and it has taken more time and it is more expensive. But the adoption of hydrogen as a fuel source is fairly commonplace. There are hydrogen powered cars. There's also hydrogen powered buses. Our partners, such as BAE Systems, has thousands of buses on the road all across the United States, particularly in California, that are powered by fuel-cells. And they've been doing so for decades.

So it's really this new technology that bring this to bear. And the more vessels, the more buses, the more things that are created using hydrogen fuel-cells as a propulsion engine will actually cause the cost to come down. And, also, there are a lot of folks that are on board right now trying to bring the cost of hydrogen down by using electrolyzers. Cummins is the supplier of the fuel-cells on the boat, and they're going all in on hydrogen. They're making electrolyzers that we use to create new hydrogen, green hydrogen across the country.

WHITFIELD: And Jeff, though hydrogen is not mined like coal, it is still a greenhouse gas, is it not? So what are some of the potential risks that might be associated with this fuel source?

SOKOLIK: Sure. No, hydrogen is not a greenhouse gas in the traditional sense. And so while it does impact some of what happens in the upper atmosphere, it doesn't cause the greenhouse effect. The issues technologically with it is the high pressures that it has to be stored, or if you want it in a liquid form, very cold temperatures. Both are well established industrial means of handling it, and just turning that into a mobile source of fuel is the main issue we're dealing with.

We've been working very closely with the Coast Guard on what that looks like in order for a vessel like this to safely carry the hydrogen. Obviously, they take the safety of the passengers very seriously. And so we worked with them to make sure that there's adequate buffer spaces around the high pressure tanks and fittings onboard.

[14:50:07]

Hydrogen is very precious, so it's very important that everything be very right and leak-proof, and so the risks of hydrogen escaping are very minimal.

WHITFIELD: So Jeff, you all have been working on this for a really long time, right. How excited are you that this is about to be launched?

SOKOLIK: It's been several years in the making, and really excited to, look forward to being able to drive it here in the Bay locally as part of the sea trial that we do, and then see it down in San Francisco carrying people and getting them off of diesel-powered boats and onto this zero-emission vessel.

WHITFIELD: And then Ron, when will people be climbing aboard?

WILLE: Well, the vessel is doing operational trials in Bellingham, and then it will be moved down to the Bay Area of San Francisco this spring. So sometime this summer folks should be on board.

WHITFIELD: Lots to look forward to. Congratulations, Ron Wille, Jeff Sokolik. Thanks for your time, and what a happy New Year for you guys, especially.

SOKOLIK: Thank you, you too.

WHITFIELD: Congratulations.

Looking back on 2021, inflation rocked the economy. Americans were noticing it at the pump and on their grocery bills. Wages are rising and the job market is strong, but inflation is still expected to linger into the New Year.

CNN chief business correspondent Christine Romans takes a look at what's ahead for 2022.

(BEGIN VIDEO TAPE) CHRISTINE ROMANS, CNN CHIEF BUSINESS CORRESPONDENT: Inflation was the surprise guest in the 2021 economy, Unwanted and expected to linger on into the new Year. It's the downside of a strong economy, consumer inflation running the hottest in almost 40 years, up 6.8 percent in November.

Translation -- a cart of goods purchased a year ago for $100 would cost almost $107 in November. Energy prices a big driver of the inflation, but prices for just about everything else are rising too. It's the contradiction of the COVID economy. Wages are rising, jobs are plentiful, but the grind of higher prices at the gas station and the grocery store is eroding Americans' confidence in the recovery.

The Federal Reserve chief says the economy is robust and the job market strong, and the Fed enters the new year with a new focus, fighting inflation. To keep this economy from overheating, the Fed plans to speed up its so-called taper, ending early it's crisis era stimulus. And higher interest rates could be coming and soon. The Fed signaling it will raise interest rates three times this year. For consumers, that means higher borrowing cards for credit cards, car loans, and mortgages.

2022 comes with a high-wire act for the Fed. It needs to crush inflation. But if it moves too quickly, it can hurt the economy and even cause a recession.

In New York, I'm Christine Romans.

(END VIDEO TAPE)

WHITFIELD: Thank you, Christine.

College football's biggest game of the New Year will be a rematch. Georgia versus Alabama for the national championship. The latest on the SEC showdown next. You're in the CNN Newsroom.

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WHITFIELD: A father in Virginia is already on the financial fast track this year. Dennis Willoughby stopped in a convenience store on Wednesday to pick up some chocolate milk for his kids, and guess what, he walked out a millionaire. He won the jackpot of a lottery scratcher, a cool $1 million. There he is. He's a happy man. He's choosing to take the cash option, a scant $640,000, but enough money for plenty more chocolate milk. Pretty nice start to the New Year. Congratulations.

All right, another congratulations, game, set, rematch? The college football national championship is ready to kick off after two big semi-final playoff games last night. Here's CNN's Coy Wire.

COY WIRE, CNN SPORTS ANCHOR AND CORRESPONDENT: Fred, last night's games proved it's not even close. The SEC still the top dogs in college football. Those dogs from Georgia, they get one more shot to take down the kings of college football, Alabama. They earned it after an Orange Bowl matchup with Michigan in a packed house in Miami last night. Michigan hoping to make the title game for the first time in 23 years, Georgia dominated all night, scoring every time they had the ball in the first half.

The clock was the only thing that stopped them. Even running back Kenny McIntosh threw a touchdown pass. Quarter back Stetson Bennett in the offense putting on a clinic, piling up more than 500 yards of offense in route to a 34-11 win.

So it will be Georgia taking on Nick Saban's Alabama in a rematch of the 2018 championship. The Tide faced Cincinnati in the Cotton Bowl, and Cincinnati was the first non-power five school to ever make the playoff. They fought hard against the Tide, but Bama, too big, too strong, too fast for those Bearcats.

The offensive line was bulldozing. Averaging over three yards per rush before anyone even touched the ball carriers. Senior running back Brian Robinson with the best of his career, over 200 yards rushing. Heisman Trophy winner Bryce Young throwing for three touchdowns. Roll Tide, a 27-6 win.

Alabama now trying to win back-to-back titles, which would make their seventh championship in 15 seasons under Coach Nick Saban.

More of the same in the NHL to start 2022. The league's initial decision to pause the season was because of the spread of the virus around the league. The latest postponements, though, are about economics and a lack of fans in the stands.

Fred, eight of the nine games postponed yesterday, and the vast majority called off since play restarted this week have involved Canadian teams, Fred, where fan attendance has been capped after stricter guidelines were put in place a few weeks ago. As it stands, 91 games have been postponed so far this season. The plan is to play these games later in the season when restrictions are hopefully lifted.

As the games still be played, we have the winter classic today. The Blues facing the Wild outdoors in Minneapolis. Forecast, Fred, has temperatures of minus five at game time with potential windchills of negative 20.