(Bloomberg) -- President Donald Trump said he will revoke California’s authority to regulate greenhouse gas emissions from autos, confirming a widely-anticipated move that will escalate the ongoing dispute between his administration and California.

Trump said on Twitter his administration’s replacement efficiency standards, which are being finalized by federal agencies for cars after 2020, will lead to greater vehicle production by reducing the cost of new vehicles.

“Many more cars will be produced under the new and uniform standard, meaning significantly more JOBS, JOBS, JOBS! Automakers should seize this opportunity because without this alternative to California, you will be out of business,” Trump said in a tweet.

Under Trump’s plan, the Environmental Protection Agency will revoke the so-called waiver underpinning the state’s ability to set tailpipe greenhouse gas emissions standards that are more stringent, as well as the state’s electric vehicle sales mandate. The Transportation Department meanwhile will assert that the California rules are preempted federal fuel-economy standards administered by the National Highway Traffic Safety Administration.

EPA and Transportation department representatives didn’t immediately respond to emails seeking comment.

The move is the Trump administration’s opening salvo in what’s sure to be a contentious battle over states rights and environmental policy between officials in California and Washington, with automakers caught in the middle.

California officials including Governor Gavin Newsom, Attorney General Xavier Becerra and California Air Resources Board Chairman Mary Nichols were scheduled to address the action in a press conference at noon New York time on Wednesday.

Once in effect, the measures announced will also shatter a nearly decade-long regulatory arrangement between NHTSA, EPA and the California Air Resources Board that has allowed automakers to satisfy fuel economy and efficiency standards administered by each agency with a single fleet of vehicles that can be sold nationwide.

To contact the reporter on this story: Ryan Beene in Washington at rbeene@bloomberg.net

To contact the editors responsible for this story: Jon Morgan at jmorgan97@bloomberg.net, Elizabeth Wasserman

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