One very distinct possibility is that it was a test of one of these:
Although... numerous private sector companies experiment with rocket systems for launching commercial satellites, etc. and being off the CA coast would seem logical since that's where we still have a sizable population of electronics and computer communications companies.
Third possibility is that it was a hobbyist testing out a new rocket design. Some of these guys create some really powerful rockets and most of them are required to check in with the FAA before a test launch. Launching out toward sea and out of commercial flight paths from a small pad towed behind a boat would be a low-risk way to try out a new booster.
Paul Purcell
InfoQuest
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