New Jersey's Urban Heat Island Mitigation Program (UHI) was established by the Board of Public Utilities (the Board) on July 16, 2025. The UHI Program allows Overburdened Municipalities (OBMs) and Community-Based Organizations (CBOs) to receive funding to mitigate against extreme heat by implementing cooling tactics within a community.
Why does this matter? In 2024, New Jersey recorded its second-hottest June-July period on record, with eight of the warmest Julys occurring since 2010, based on records dating back to 1895. New Jersey is also the fastest-warming state in the Northeast, driven in part by its dense urban development, which contributes to the UHI effect. Extreme heat exacerbated by UHIs is the leading cause of weather-related death in the U.S., worsens health conditions, compromises air and water quality, and drives up energy bills.
Where do we experience the worst extreme heat in New Jersey? UHIs occur when built-up urban areas experience significantly higher temperatures than surrounding areas due to heat-absorbing surfaces like asphalt and concrete. Overburdened communities (OBCs) experiencing the UHI effect face disproportionate exposure to extreme heat events. Decades of systemic inequities, including historic redlining and ongoing disinvestment, have left OBCs with minimal natural cooling infrastructure and a high concentration of impervious surfaces. These conditions increase their exposure to extreme heat and drive-up energy costs. Multiple OBCs are often located in OBMs. Several major NJ cities, which also qualify as OBMs, have less than 30% tree canopy coverage… In these OBMs, residents may experience an UHI index of 8 °F or higher. Furthermore, these OBMs experience considerable surface UHI intensities, with built-up urban areas having land surface temperatures 10°C (18°F) warmer than nearby forested areas.
Program Structure The program is structured in three different categories.
Table 1: UHI Program Categories and Scope
Category # 1. 2. 3. Mitigation Category Comprehensive Public Space UHI Interventions Cooling the Built Environment Urban Microclimate Interventions Number of Grants Available Two Four Twenty Scope Grants of up to $1M each will be awarded to major community revitalization projects that focus on the improvement of public spaces and parks development via a “whole neighborhood approach,” in which, relevant community stakeholders, including but not limited to residents, local organizations, etc., who would be directly impacted by these renovations, have a say in the process. It is critical that the municipal applicant consults community members in the planning process and ensures the implementation is aligned with what the community wants. Grants of up to $500,000 each will be awarded to projects focusing on public cooling center fortification and implementing measures for public buildings that promote cooling and energy efficiency to form resilience hubs. Grants of up to $50,000 will be awarded for small-scale, localized community projects that mitigate the UHI effect based on interventions identified by CBOs.Application Period
The application window will open on Tuesday, October 28, 2025 and is expected to close on close of business Monday, December 15th, 2025.
Applications must be submitted through SAGE, which can be accessed at: njbpu.intelligrants.com.
Drop-in Sessions for NJBPU's Urban Heat Island Funding Opportunity
The New Jersey Board of Public Utilities (BPU) has opened a Urban Heat Island Funding Opportunity to help reduce the urban heat island (UHI) effect in your community. Awards go up to $1 million for municipalities and up to $50,000 for community-based organizations (CBOs). If you have questions about this opportunity, attend a drop-in session and speak with NJBPU staff directly.
Application deadline is December 15th.
- Friday, November 21, 2:00 - 3:00pm REGISTER
- Thursday, December 4, 2:00 - 3:00pm REGISTER
Application Guidance Packets
- To brainstorm projects within each project category and identify ideal areas for UHI interventions within overburdened municipalities, please refer to this resource, here.
- The application guidance packet for the UHI program is available, here. This packet details applicant eligibility, guidance on how to create a SAGE account, terms and conditions, and a template for a letter of support for CBOs.
- The SAGE guidance packet for UHI is attached, here. This packet includes the step by step process for how to complete the UHI SAGE application, and all fields the applicant will be required to complete.
For questions regarding this program, please email community.energy@bpu.nj.gov.
Question & Answer
Where do I find out if my municipality is an OBM? On the bottom of the CEP webpage there is a list of OBMs, which are eligible for the program.
What are some examples of viable projects? Please refer to the original board order here. Examples of Comprehensive Public Space UHI Interventions begin on page 10, Cooling the Built Environment examples are on pages 12-13, and Urban Microclimate Interventions examples are on page 14.
