House Bill 1850 establishes the "Climate Resiliency Fund Act" in Tennessee, creating a framework for funding climate change adaptation projects through a newly established Climate Resiliency Fund. The bill defines key terms related to climate change and environmental justice, such as "climate change adaptation project," "responsible party," and "environmental justice focus population." The fund will be administered by the Department of Environment and Conservation, financed through cost recovery payments from responsible parties—entities with significant greenhouse gas emissions—state appropriations, and other donations. Responsible parties are strictly liable for contributing to the costs of climate adaptation projects, with the legislation detailing how cost recovery demands will be calculated and the consequences for non-compliance.

The bill also mandates the Department of Environment and Conservation, in consultation with the state treasurer, to report to the General Assembly by January 15, 2027, on the program's feasibility and progress, including recommendations for improvements. It requires the department to adopt necessary rules for implementation, including methodologies for identifying responsible parties and developing a resilience implementation strategy. An audit process is outlined to evaluate the program's effectiveness every five years, starting January 1, 2032, with the comptroller of the treasury responsible for recommendations. Additionally, by January 15, 2028, the state treasurer must assess the costs associated with covered greenhouse gas emissions and their impacts on public health, natural resources, and economic development, aiming to enhance the state's preparedness for climate change challenges while promoting sustainability in vulnerable communities.