California’s coastal regulator has apologized to Elon Musk’s SpaceX and settled a lawsuit in which the rocket company accused the agency of political bias in its review of expanded Falcon 9 launches from Vandenberg Space Force Base.
Regulator Admits Improper Remarks About SpaceX
The California Coastal Commission acknowledged in a settlement filed Tuesday in federal court in Los Angeles that some members made improper statements during a 2024 hearing that showed political bias against SpaceX and Musk.
The agreement said the commission “may not consider irrelevant factors” and will not weigh the “perceived political beliefs, political speech, or labor practices” of SpaceX or its officers when considering regulatory action.
Commission Keeps Concerns Over Coastal Impact
The commission said it still has “serious concerns about the impacts to coastal resources” from more launches at Vandenberg. It cited limits on public coastal access, potential harm to species and habitat, and the frequency and intensity of rocket sonic booms.
SpaceX sued the commission in October 2024 after the agency rejected its plan to increase Falcon 9 launches from the Santa Barbara County base. The commission had argued that the launches counted as commercial activity subject to state coastal rules, notes Reuters.
The U.S. Air Force objected, saying it would proceed with additional launches anyway, as SpaceX handles government satellite deployments and other payloads.
Under the settlement, the commission will not require SpaceX to obtain a coastal development permit for the launch program. SpaceX agreed to share sonic boom monitoring data that it already provides to the Air Force.
SpaceX Still Faces Broader Legal Risks
The deal removes one regulatory fight from SpaceX’s docket, though the company still faces scrutiny tied to labor issues, workplace culture and its growing operational footprint in Texas. It has been previously reported that earlier this year, the U.S. labor board dropped a two-year case accusing SpaceX of illegally firing engineers who criticized Musk.
SpaceX has also flagged broader legal risks ahead of a rumored mid-2026 public listing. In recent IPO-related filings, the company warned that regulatory inquiries into xAI and AI-generated content could lead to legal liabilities, financial exposure, or market access restrictions.
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