House Bill 716, known as the "Climate Resiliency Fund Act," establishes a framework for climate change adaptation projects in Tennessee by creating a new chapter in the Tennessee Code Annotated. The bill defines key terms related to climate adaptation and mandates the establishment of a climate resiliency fund, which will be managed by the Department of Environment and Conservation. This fund will be financed through cost recovery payments from responsible parties, state appropriations, and donations. The act outlines the liability of responsible parties, who will be strictly liable for their share of costs associated with these projects, and specifies that entities within a controlled group will be treated as a single entity for liability purposes.

Additionally, the bill requires the Department to report to the General Assembly by January 15, 2026, on the program's feasibility and progress, along with recommendations for improvements. It mandates the adoption of rules for identifying responsible parties for greenhouse gas emissions and developing a resilience implementation strategy. An audit of the climate resiliency fund program will be conducted by the comptroller of the treasury starting January 1, 2031, and every five years thereafter, to assess the program's effectiveness. Furthermore, by January 15, 2027, the state treasurer must submit an assessment of costs associated with greenhouse gas emissions from 1995 to 2025, detailing cost-driving effects and abatement efforts.