SAN DIEGO, Dec 29 (Reuters) - SeaWorld sued California authorities on Tuesday, seeking to overturn a decision that allows the San Diego theme park to expand its orca habitat only if it stops breeding killer whales in captivity.

The lawsuit, filed in San Diego Superior Court, argues that the California Coastal Commission overstepped its authority when it imposed the breeding restriction because it does not have jurisdiction over the marine mammals, which are regulated under federal law.

The commission, which oversees development along California's coast, only had jurisdiction to approve or reject construction projects at the park and would effectively end SeaWorld's popular killer whale shows, the complaint said.

"The condition forces SeaWorld to either agree to the eventual demise of its lawful and federally regulated orca exhibition, or withdraw the permit application and forego the effort to enhance the orcas' habitat," SeaWorld Entertainment Inc attorneys said.