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 been engaged in fossil fuel extraction or refining and are responsible for over one billion metric tons of greenhouse gas emissions from January 1, 1995, until the bill's enactment. The State Treasurer is tasked with assessing the damages incurred by the state due to these emissions and determining the proportional liability of each responsible party. The bill mandates that these parties make compensatory payments to the state, which will be calculated based on their share of total emissions.

The collected funds will be deposited into the newly established "Climate Superfund Cost Recovery Program Fund," which is dedicated to financing climate change adaptation and resilience projects. The DEP will implement a grant program to distribute these funds for various projects aimed at mitigating the impacts of climate change, such as flood protection and infrastructure upgrades. 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 the state to adapt and respond to its effects.