yes, the 2nd law applies within closed systems. You can cheat in reality (where closed systems don't actually exist) by taking energy from outside a bounded territory (say, a human body) and using it to resist entropy. He doesn't call it by name, but he's referencing autopoiesis (or, continuous self-creation) and homeostasis (self-regulation of properties through balancing feedback loops). Both of these processes consume energy (leading to overall entropy increase), but you can nick that energy from the "environment" through food or photosynthesis or whatever.