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Illustration: Sarah Grillo/Axios

The high-stakes fight over vehicle emissions and mileage rules is getting more intense and drawing in new combatants.

Driving the news, part 1: California Gov. Gavin Newsom said the state government would only buy cars for their fleets from automakers that reached a deal with the state on increasing emissions standards.

  • Ford, VW, Honda and BMW struck a deal with the state last summer that bucks the White House effort to roll back Obama-era standards for vehicles built through the mid-2020s.
  • "Carmakers that have chosen to be on the wrong side of history will be on the losing end of California’s buying power," Newsom said in a statement on the policy first reported Friday by the site CalMatters.
  • That means ending purchases from GM, Fiat Chrysler, Toyota and others siding with the administration in litigation over federal efforts to curb California's power to set rules that roughly a dozen other states follow.
  • The important numbers: Per Reuters, California bought nearly $59 million in vehicles from GM in 2016-2018 and nearly $56 million from Fiat Chrysler in the same period.
  • Quick take: This is increasingly a game of hardball. Remember the Justice Department recently opened an antitrust inquiry into the four companies that reached the deal with California.

Driving the news, part 2: Electric vehicle makers Tesla and Rivian are joining the fray.

  • They're members of the National Coalition for Advanced Transportation — a group that also includes several power and EV charging companies — that has joined litigation on the matter.
  • That group filed a motion Friday to intervene in cases filed by California and the Environmental Defense Fund challenging a Transportation Department finding that its purview over fuel economy preempts state tailpipe CO2 rules.
  • The group supports maintaining California's standards and zero-emissions vehicles program, and the motion lays out the parties' interests — including Tesla's ability to keep earning valuable compliance credits under the current rules.
  • Bloomberg Environment has more.

Where it stands: Those lawsuits, by the way, are two of a growing number in the administration tussle with California. On Friday, California and a suite of other states filed suit against EPA for yanking the state's Clean Air Act waiver to set standards that go beyond federal rules.

Why it matters: It's one of the most intense and consequential regulatory battles of the Trump era.

  • Transportation is the nation's largest carbon emissions source. And new Energy Department data shows those emissions rose again last year.
  • Meanwhile, automakers want a single set of national rules as they make billion-dollar bets on their future fleets. But the powerful industry has splintered on how to get there and what the standards should be.

Go deeper: The bumpy transition toward electric vehicles

Go deeper

11 mins ago - Health

J&J CEO "absolutely" confident in vaccine distribution goals

Johnson & Johnson CEO Alex Gorsky said Monday that he is "absolutely" confident that the company will be able to meet its distribution goals, which include 100 million doses by June and up to a billion by the end of 2021.

Driving the news: J&J is already in the process of shipping 3.9 million doses this week, just days after the FDA issued an emergency use authorization for the one-shot vaccine. Gorsky said he expects vaccines to be administered to Americans "literally within the next 24 to 48 hours."

Dion Rabouin, author of Markets
44 mins ago - Economy & Business

Clash of the central bankers

Photo Illustration: Eniola Odetunde/Axios. Photos: Bloomberg, Samuel Corum (Stringer)/Getty Images

While Fed chair Jerome Powell is brushing off the seismic rise in government bond yields and a corresponding decline in stock prices, a group of central bankers in the Pacific are starting to take action.

Driving the news: Bank of Japan governor Haruhiko Kuroda told parliament on Friday the BOJ would not allow yields on government debt to continue rising further above the BOJ's 0% target.

Biden expresses support for Amazon workers' union vote in Alabama

Photo: Joe Raedle/Getty Images

President Biden expressed support for a union vote by Amazon warehouse workers in Alabama in a two-minute video posted on Twitter Sunday, though he did not name the tech giant specifically.

Why it matters: A vote by workers at the Bessemer, Ala., warehouse to join the Retail, Wholesale and Department Store Union would make the facility the first Amazon warehouse to unionize in the U.S., per NPR. The election will run through March 29.