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, ensuring they are jointly and severally liable for damages.

The collected funds will be deposited into the newly established "Climate Superfund Cost Recovery Program Fund," which will be dedicated to financing climate change adaptation and resilience projects. The DEP is tasked with developing a grant program to distribute these funds, as well as issuing annual reports on the program's activities starting five years after the bill's enactment. Additionally, the DEP must adopt rules and regulations to implement the act within two years of the State Treasurer's damage assessment. Overall, the bill aims to hold fossil fuel companies accountable for their contributions to climate change while providing resources for adaptation efforts in New Jersey.