House Bill 1850, known as the "Climate Resiliency Fund Act," introduces a new chapter in the Tennessee Code Annotated dedicated to climate change adaptation projects. The bill establishes a climate resiliency fund program, which will be administered by the Department of Environment and Conservation. This program aims to secure compensatory payments from responsible parties for climate change adaptation projects, determining their proportional liability and imposing cost recovery demands. The fund will be composed of these payments, appropriations from the General Assembly, and other donations, and will be exclusively allocated for climate change adaptation projects and related administrative expenses.

The bill outlines the strict liability of responsible parties for costs associated with climate change adaptation projects and details how cost recovery demands will be calculated based on greenhouse gas emissions, allowing for installment payments under certain conditions. It mandates the Department to report to the General Assembly by January 15, 2027, on the program's feasibility and progress, while also requiring the comptroller of the treasury to evaluate the program's effectiveness starting January 1, 2032, and every five years thereafter. Additionally, the state treasurer must submit an assessment by January 15, 2028, detailing the costs associated with greenhouse gas emissions and their impacts. The bill emphasizes stakeholder consultation and public engagement, particularly in communities most affected by climate change.