The "Climate Superfund Act" establishes liability for certain fossil fuel companies for damages caused by climate change, creating a framework for the Department of Environmental Protection (DEP) to collect compensatory payments from these companies. The bill defines "responsible parties" as entities that have contributed over one billion metric tons of greenhouse gas emissions from January 1, 1995, to the enactment of the bill. It mandates the State Treasurer to assess the damages incurred by the state due to these emissions and requires responsible parties to make compensatory payments proportional to their emissions. The bill also outlines the liability structure for companies within a controlled group, holding them jointly and severally responsible for damages.

The collected funds will be deposited into the newly established "Climate Superfund Cost Recovery Program Fund," which will be dedicated to financing climate change adaptation and resilience projects. The DEP is tasked with developing a grant program to distribute these funds, ensuring that they are used for projects that mitigate the impacts of climate change. Additionally, the bill requires the DEP to issue annual reports on the program's activities and to adopt necessary regulations within two years following the State Treasurer's damage assessment. Overall, the act aims to hold fossil fuel companies accountable for their contributions to climate change while providing resources for adaptation efforts in New Jersey.