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 since January 1, 1995. It mandates the State Treasurer to assess the damages incurred by the state and its residents due to these emissions and requires responsible parties to make compensatory payments proportional to their share of emissions. The bill also outlines the liability structure for companies within a controlled group, holding them jointly and severally liable for damages.

Additionally, the bill 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 tasked with developing a grant program to distribute these funds, ensuring that they are used effectively for projects that mitigate the impacts of climate change. The bill requires annual reporting on the program's activities and mandates the adoption of rules and regulations to implement its provisions within a specified timeframe. 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.