California Code, Penal Code - PEN § 2052

(a) The department shall have power to contract for the supply of electricity, gas and water for the prisons, upon terms the department deems in the best interests of the state, or to manufacture gas or electricity, or furnish water itself, at its option.  It shall also have power to erect and construct or cause to be erected and constructed, electrical apparatus or other illuminating works in its discretion with or without contracting therefor, on terms it deems just.  The department shall have full power to erect any building or structure deemed necessary by it, or to alter or improve the same, and to pay for the same from the fund appropriated for the use or support of the prisons, or from the earnings thereof, without advertising or contracting therefor.

(b) With respect to any facility under the jurisdiction of the California Correctional Training and Rehabilitation Authority, the California Correctional Training and Rehabilitation Authority shall have the same powers that are vested in the department pursuant to subdivision (a).