You're both wrong on the energy equation imho. You say "the amount of energy in existence is locked in place and can't increase or decrease" - I say that if we had fully functioning solar grid then we'd have "infinite" energy (at least until the sun went dark). Taking that logic further, it can be said that all energy on earth (except, perhaps, for nuclear) are derived from the sun.
California's topography is complicated. If you want more drinking water, then yes, desalinization is a thing. It may not be economical, but it is a thing. As for the fires, being next to the ocean is a double edged sword. It would be great if all of the wind patterns brought great rain showers every day (as happens in Florida). The patterns are very fickle in California, however. Plus, much of the coast has mountain ranges that parallel the coast. So, when rain clouds do move in from the ocean they hit the mountains, dump their moisture, and the west side of the mountain ranges get the moisture while the east side of the ranges don't. There's more land to the east of these ranges than to the west. Then there's the offshore winds that whip small fires into infernos very quickly, drought or not.