BREAKING NEWS: State Agency Says E-Group Solar Project Too Small for AB205 Takeover
CEC official says the project's AC output falls below the AB205 threshold that has driven city decision-making since 2023 — but the city never verified the claim independently
Updated with a clarification on the City’s lack of due diligence in seeking clarification from the California Energy Commission on how power output is measured.
A written response from a California Energy Commission official has undercut the central legal threat behind the proposed E-Group Solar Project — just two weeks before the Twentynine Palms City Council is scheduled to vote on the facility.
Since May 2023, E-Group attorney Robert Smith of K&L Gates LLP has warned the city that if it did not approve the project, the developer would seek state certification under Assembly Bill 205, bypassing local control entirely. That threat shaped the city’s response from the beginning, with city staff telling the Council in 2023 that AB205 “essentially dictates that if a local jurisdiction does not permit a solar farm, then the State would assume jurisdiction.”
AB205 applies only to solar facilities with a generating capacity of 50 megawatts or more. The dispute is over how that capacity is measured. E-Group has argued the threshold is met using the project’s DC output from its solar panels — approximately 51 MW. Opponents have countered that generating capacity is universally measured in AC power, the electricity actually delivered to the grid, which for this project is approximately 38 MW.
On March 5, Twentynine Palms resident Suzanne Lyons — not the city — sent a formal inquiry to the CEC asking for clarification. Eric Knight, Program Manager for the CEC’s Siting and Environmental Branch, replied the same day.
“The 50-MW threshold refers to AC generating capacity — the maximum continuous electrical output that can actually be delivered to the grid — not the DC module or nameplate rating,” Knight wrote. “A 38-MWac solar project does not qualify for opting into the CEC’s exclusive licensing authority under AB205.”
Did the City Ever Verify the Claim?
The Desert Trumpet asked Community Development Director Keith Gardner at Tuesday night’s City Council meeting whether the city had independently verified with the CEC whether the project actually meets the AB205 threshold. Gardner said he had not seen the CEC letter, and added, “I can tell you we took our lead from our legal team.” When pressed further, he said, “A lot of this stuff was put in motion before me.”
Gardner’s responses reflect a significant staffing reality: both the City Manager and Community Development Director changed after the E-Group project was initiated in 2023, leaving the city’s institutional knowledge of the project’s origins with its legal team and outside consultants.1 The Desert Trumpet has also sought comment from the City Attorney and Terra Nova Representative Nicole Criste, the city’s CEQA consultant, both of whom were in their positions when the project began. Neither had responded by press time.
E-Group’s Response
Asked to comment, Smith did not dispute the CEC’s AC interpretation. Instead, he stated that “currently, CEC approval under AB205 is not being sought for the project” and that “E-Group PS is reviewing recent CEC staff communications” — language that notably stops short of defending the DC-based argument the company has made throughout the review process.
Smith maintained that the project could still qualify for AB205 if needed by adding inverters. “If the CEC required a solar project to establish a 50 MW AC threshold, the project would still meet required thresholds by installing additional inverters without modification to the overall site footprint,” he wrote.
Smith did not address whether a roughly 31% increase in generating capacity — from 38 MW AC to 50 MW AC — would require an amended Environmental Impact Report and additional Planning Commission and City Council review. He also did not address whether E-Group is withdrawing the AB205 threat that has shaped the city’s handling of this project since 2023.
The Desert Trumpet sent Smith follow-up questions on both points, as well as asking whether he is aware of any CEC guidance contradicting Knight’s March 5 statement. No response was received by press time.
What’s at Stake
The Planning Commission sent the project to City Council without a clear recommendation after a split vote on March 3. The Council is scheduled to take up the project on March 23, 2026.
This story will be updated if responses are received from E-Group, K&L Gates, the City Attorney, or Terra Nova.
This article was written with AI assistance.
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Since we published this article, further inquiry has shown that Mr. Gardner was hired as City Development Director in October 2022. We do not know when conversations on the project started but the E Group letter on AB 205 was sent in 2023.
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Besides requiring 50 MW of AC energy AB205 also requires battery storage and which is not mentioned in any of the planning documents. Thanks for posting Suzannes's CEC communication.
kudos to Suzanne Lyons , city citizen par excellance, for doing the job of city officials who are inept at representing us residents of 29 Palms. and to the Desert Trumpet for reporting this important tidbit of news !!