I was able to make 38 words. They are loan, rain, foil, of, in, for, calf, roan, or, an, can, con, oil, car, corn, iron, arc, ail, fail, roil, rail, nail, frail,liar, clan, fin, far, fan, nil, coin, lion, ion, no, fro,lo, lair, air and fair.
I dropped the word California into a word generator for Scrabble players that's on the internet, and it returned 221 words that would be acceptable in a Scrabble tournament. They'd probably be OK in a Boggle tournament, too, in case Peggy Hill happens to read this. Some of them are, let's say, unusual.
Quite a few; remember to use the small words too and to try various beginning letters! Among others: if, can, for, far, fir, calf, fin, car, iron, or, oil, foil, coil, i, a, an, in, corn.