The "Climate Superfund Act" establishes liability for certain fossil fuel companies for damages caused by climate change and creates a program within 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, to the enactment of the bill. 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, who will then be required to make compensatory payments to the state.

The collected funds will be deposited into the "Climate Superfund Cost Recovery Program Fund," which will be used to finance climate change adaptation and resilience projects through a grant program established by the DEP. The bill outlines the procedures for the collection of payments, the distribution of funds, and the reporting requirements for the DEP, which must provide annual updates on the program's activities starting five years after the bill's enactment. Additionally, the DEP is required to adopt rules and regulations to implement the act within two years of the State Treasurer's damage assessment.