A Los Angeles federal judge earlier this month ruled that SpaceX can pursue a lawsuit against the California Coastal Commission for allegedly targeting the company for more regulatory scrutiny based on CEO Elon Musk’s political views.
On July 2, U.S. District Judge Stanley Blumenfeld Jr. issued an order in Los Angeles federal court allowing a portion of SpaceX’s second amended complaint against the commission for denying a request to expand the number of Falcon 9 rocket launches from Vandenberg Space Force Base.
The commission issued the denial on Oct. 10, 2024, saying SpaceX failed to qualify for state permitting requirements, even though the company launches from a U.S. military facility.
SpaceX sued five days later, on Oct. 15, 2024, to have the court declare that the commission illegally demanded a coastal development permit to allow additional launches, although the company later amended its complaint for a second time in March to include additional details.
Blumenfeld granted a motion to dismiss violations of the First Amendment and due process against the commission and individual members based on lack of standing, sovereign immunity and failure to state a claim, but allowed allegations of “biased attempts to regulate SpaceX’s activity” and unlawfully demanding a CDP to proceed.
“In sum, SpaceX has plausibly alleged a ripe, nonspeculative case or controversy over whether it must obtain a CDP to continue its Falcon 9 launches,” Blumenfeld said in his order. “The credible threat that defendants will bring an enforcement action and subject SpaceX to daily fines for not having a CDP — which defendants pointedly do not disavow — is sufficient to establish an actual injury under Article III [of the U.S. Constitution].”
In its complaint, SpaceX said the commission’s decision to deny an Air Force proposal to increase Falcon 9 launches from 36 to 50 at Vandenberg SFB was politically motivated.
SpaceX cited remarks by the commissioners that indicated their actions “were substantially motivated by animus and bias against the protected speech of SpaceX and its owner Mr. Musk.”
In one instance, SpaceX said Commissioner Gretchen Newsom read a prepared statement regarding Musk’s activities during the 2024 presidential election, saying he was “hopping about the country, spewing and tweeting political falsehoods.”
The commission brought a motion to dismiss the second amended complaint in April, arguing that SpaceX hadn’t alleged an “actual or imminent injury,” including harm to its business reputation.
SpaceX said in its complaint that the commission unlawfully required it to obtain a consistency certification under the federal Coastal Zone Management Act, saying space launches are permitted and aren’t listed as activities that could affect the coastal zone.
The commission, however, said in its motion to dismiss that this claim is “unfit for judicial review” because SpaceX hadn’t alleged any action that would trigger a requirement for a consistency certification for its Falcon 9 program.
Blumenfeld agreed with the commission, dismissing this portion of SpaceX’s complaint against all defendants without prejudice.
Attorneys representing SpaceX declined to comment and the commission did not immediately respond to emailed requests for comment on Friday.