Palin spoke before a logging conference in Redding, a town of 90,000 about 160 miles north of the state capital. The media were barred from the event, but The Associated Press bought a $74 ticket to attend.
Palin said California's heavy regulatory environment makes it difficult for businesses to succeed, a point that is shared by many business leaders in the state.
She criticized what she said were heavy-handed environmental laws. As Alaska governor, for example, she said she sued the federal government to overturn the listing of polar bears as a threatened species.
As Alaska North Slope wells dry up, the state is examining offshore drilling for oil and natural gas reserves. Protections for polar bears under the Endangered Species Act could thwart those explorations, according to Palin and her successor, Alaska Gov. Sean Parnell, who has picked up the cause.
Palin told the audience that filled the 2,000-seat Redding Convention Center that she disagreed with the science the government used to support the listing.
"We knew the bottom line ... was ultimately to shut down a lot of our development," she said during her 40-minute speech, which was followed by a 20-minute question-and-answer session.