California Coastal Commission overstepped its authority in Los Osos

April 26, 2026

One of Tim Shea’s vacant lots

By KAREN VELIE

The California Supreme Court ruled this week that the Coastal Commission overstepped its authority when it blocked a developer from building already permitted homes in Los Osos in what some are calling a landmark case.

“Today’s decision is a win for every property owner along California’s coast,” said Jeremy Talcott, an attorney at Pacific Legal Foundation. “The Coastal Commission cannot simply decide to reinterpret legislation based on its own whims. For years, the commission has usurped the power given by the state legislature to local coastal communities to approve homebuilding permits. This decision corrects the commission’s overreach.”

In 2004, San Luis Obispo County approved coastal development permits authorizing Tim Shea to build eight residence on his property in two phases. In the first phase, Shea could build a total of four homes under his company Shear Development. After the completion of the Los Osos sewer project, Shea could build the remaining four homes.

However, two members of the Coastal Commission appealed the permits for the remaining four homes to their own board because it was not known when the sewer would be finished. The commission then blocked the permits.

In 2019, San Luis Obispo County approved permits for three of the remaining homes with consultant Jeff Edwards continuing to promote the project, as an endangered snail had been found on one of the lots.

Again, members of the Coastal Commission appealed and the commission again stopped the project.

The State’s Coastal Act, however, limits the power of the Coastal Commission to veto reasonable land uses after a local government has approved a project that conforms to the local government’s Local Coastal Program. The Coastal Commission has a history of ignoring limitations placed on it by the legislature.

In Feb. 2021, Shea filed suit in the San Luis Obispo County Superior Court arguing in part that the Coastal Commission had abused its authority. The court dismissed Shea’s lawsuit and an appeal was filed.

The Court of Appeals also held that, on the merits, “the Coastal Commission did not abuse its discretion because its factual findings relating to water and wastewater access are supported by substantial evidence.”

Represented at no charge by Pacific Legal Foundation, Shear asked the California Supreme Court to reverse the Coastal Commission’s unlawful permit denial, confine the commission to its proper role under the Coastal Act, and affirm that courts, not agencies, should resolve questions of statutory interpretation – which the court ruled unanimously to do so on April 23.

“For half a century, the Coastal Commission has expanded its authority, often at the expense of coastal property owners’ rights and the communities along the coast. San Luis Obispo County, the League of California Cities, Californians for Homeownership, and the California Association of Realtors filed briefs urging the court to rein in the commission’s reach.”

Over the past several years, multiple superior courts have found that the Coastal Commission had overstepped its authority in denying permits.

For example, in March 2021, the Coastal Commission voted unanimously to phase out off-road vehicle usage at the Oceano Dunes over three years. Their plan was to deny California State Park’s renewal of its coastal development permit and close the dunes to vehicles. However, four years later the Second Circuit Court of Appeals ruled the Coastal Commission overstepped its authority when it attempted to ban off-road vehicle usage at the Oceano Dunes.

This week’s Supreme Court ruling is one of the most significant checks on the Coastal Commission’s power since the landmark U.S. Supreme Court victory in Nollan v. California Coastal Commission nearly four decades ago, also by the Pacific Legal Foundation.

“The victory vindicated Shear’s right to build homes, forcing the Coastal Commission to stick to Local Coastal Plans as written and building a firm legal foundation for all citizens to fight back whenever the agency tries to rewrite regulations at will,” according to the Pacific Legal Foundation.

Because we believe the public needs the facts, the truth, CalCoastNews has not put up a paywall because it limits readership. However, we are seeking qualification as a paper of record, which will allow us to publish public notices, this requires 5,000 paid subscribers.

Your subscription will help us to continue investigating and reporting the news.

Support CalCoastNews, subscribe today, click here.