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 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 bill's effective date. The State Treasurer is tasked with assessing the damages incurred by the state due to these emissions, and each responsible party will be strictly liable for compensatory payments proportional to their share of emissions.

The bill also establishes the "Climate Superfund Cost Recovery Program Fund," where collected payments will be deposited and used to finance climate change adaptation and resilience projects. The DEP is required to develop a grant program to distribute these funds, ensuring that they are allocated to projects that mitigate the impacts of climate change. Additionally, the DEP must issue annual reports on the program's activities starting five years after the bill's enactment and adopt necessary regulations within two years following the State Treasurer's damage assessment.