The state has long recognized its responsibility to protect the general health and safety of the people of California. To protect Californians from hazards posed by waste facilities and surface mines, the state’s environmental regulatory agencies require financial assurances from the owners/operators of these facilities-evidence that these parties have the financial capacity to restore public resources that they degrade. This report details California’s existing financial assurance requirements, examines shortcomings with the current financial assurance system, and recommends improvements. Adoption of our recommendations should decrease the likelihood that financial assurances will fail to serve their public purpose, thereby reducing the state’s exposure to significant financial risk in the future.