The "Climate Superfund Act" establishes liability for certain fossil fuel companies for damages caused by climate change, mandating that these companies, defined as "responsible parties," compensate the State for their contributions to greenhouse gas emissions exceeding one billion metric tons since January 1, 1995. The bill requires the State Treasurer to assess the damages incurred by the State and its residents due to these emissions and submit a report to the Legislature within two years of the act's enactment. Each responsible party will be strictly liable for the damages, and those within a controlled group will be jointly and severally liable. The Department of Environmental Protection (DEP) will determine the proportional liability of each responsible party and collect compensatory payments accordingly.

The bill also establishes the "Climate Superfund Cost Recovery Program Fund" to manage the collected payments, which will be used to finance climate change adaptation and resilience projects. The DEP is tasked with creating a grant program to distribute these funds, ensuring that they are dedicated solely to qualifying expenditures related to climate change adaptation. Additionally, the DEP will issue annual reports on the program's activities starting five years after the act's effective date and is required to adopt rules and regulations to implement the act within two years following the State Treasurer's damage assessment.