The Coastal Commission's ability to prevent development by designating environmentally sensitive habitat areas appears to depend on the existence of a certified local coastal program (LCP).
In a case from Sand City, the First District Court of Appeal said the Coastal Commission could not overturn Sand City's approval of a 495-unit housing project based on the Commission's conclusion that the site is an environmentally sensitive habitat area (ESHA). The court said that because Sand City's LCP did not designate the site as ESHA, the Commission could not do so during an appeal of the housing project. However, in a case from Los Angeles County, the Second District Court of Appeal ruled that the Commission could reject a landowner's coastal development permit in part because the site is not covered by a certified LCP.