California state regulators have issued a formal apology to SpaceX CEO Elon Musk this week following the resolution of a federal lawsuit that accused the agency of political discrimination against the aerospace company and its leader.
Under terms of the settlement agreement, the California Coastal Commission admitted that its members made “improper” comments regarding Musk’s political positions during a 2024 hearing about SpaceX’s Falcon 9 rocket operations.
“The commission agrees that it may not consider irrelevant factors in performing its function and specifically agrees that it will not take into account the perceived political beliefs, political speech or labor practices of SpaceX or its officers in considering any regulatory action concerning SpaceX,” the commission stated in federal court documents filed Tuesday.
The legal dispute centered on SpaceX’s challenge to the commission’s resistance to increasing Falcon 9 launch frequency at Vandenberg Space Force Base, located along the Southern California coastline near Santa Barbara.
In its federal complaint, the rocket manufacturer claimed the coastal agency engaged in political retaliation by blocking a U.S. Air Force proposal to increase launch operations at the federally-owned military installation.
SpaceX’s legal team argued that commissioners rejected the expansion plans due to their opposition to Musk’s public political statements, which they said violated constitutional protections for free speech and due process rights.
Under the settlement terms, the lawsuit will be permanently dropped, with both sides agreeing the resolution does not represent an admission “of any liability or unlawful conduct.”
The coastal agency also committed to not requiring a coastal development permit for SpaceX’s state launch operations moving forward.
SpaceX representatives have not yet provided comment on the settlement agreement.
In a Wednesday statement, the coastal commission confirmed it had apologized for “irrelevant” remarks from its members while maintaining ongoing environmental concerns about increased rocket activity at Vandenberg.
“These impacts include restrictions on public coastal access, harm to sensitive species and coastal habitat, as well as the frequency and intensity of sonic booms,” the statement said. “Federal law requires the federal government to provide information to and coordinate with the Coastal Commission on such issues. The federal government has yet to provide sufficient information to the Coastal Commission about these activities and their impact on the California coast.”
The settlement resolution occurred as Musk testified this week in an unrelated legal battle with OpenAI co-founder Sam Altman that could influence artificial intelligence development.
