The California Supreme Court flexed its power over the California Coastal Commission, unanimously ruling that the commission unlawfully overrode a Los Osos building permit approved by San Luis Obispo County.
“Shear’s proposed development is for one of the principal permitted uses of the site. The commission has no appellate jurisdiction over Shear’s permit application,” Chief Justice Patricia Guerrero’s April 23 ruling opinion read.
The move caps off a long saga beginning in 2003 when Shear Development Company bought eight lots in a residential neighborhood in Los Osos. Shear graded the lots and installed utilities in preparation. In 2004, the county authorized the development company to build in two phases.
After Shear built the first four homes, it went back before the county in 2017 to gain approval to complete three more. The Board of Supervisors considered the plans under the local coastal plan and granted the company a coastal development permit—after a county hearing officer rejected the application because the homes weren’t eligible to connect to the Los Osos wastewater treatment plant, and they were located where new septic systems were prohibited.
In 2019, two Coastal Commission members appealed the board’s decision to the commission, which claimed enforcement power because the project was in an Environmentally Sensitive Habitat Area. It denied the permit in 2020.
“The commission also alleged that it could appeal any permit in a zoning area that had more than one principally permitted use—a claim that would make every single project in the county’s coastal zone appealable to the CCC,” Pacific Legal Foundation, which represents Shear Development, said in a press release.
Following a trial court’s denial of Shear’s petition and an appeal court’s affirmation of the trial court’s judgement, the California Supreme Court stepped in. The court ruled that the Coastal Commission relied on an incorrect interpretation of the local coastal plan to claim jurisdiction.
The state Supreme Court stressed that courts must independently interpret the law rather than automatically deferring to the Coastal Commission, especially when local governments and the commission disagree.
It added that the proposed project isn’t in the Los Osos Dune Sands Habitat, and that under the Coastal Act, local governments have primary authority over coastal development permits. The commission can only intervene in specific and limited situations such as if an area lacks a certified local coastal plan or if it’s impacted by major public works and energy projects.
“Today’s decision is a win for every property owner along California’s coast. The Coastal Commission cannot simply decide to reinterpret legislation based on its own whims. Its authority has limits, and today the court enforced them unanimously,” Pacific Legal Foundation attorney Jeremy Talcott said in a press release. ∆
This article appears in April 30 – May 7, 2026.
Interesting to see how the court’s decision will impact development plans in Los Osos. Do you think it’ll spark more conversations about coastal conservation?