New Jersey BPU approves $5 million Urban Heat Island mitigation grant program

The New Jersey Board of Public Utilities on July 16 approved a $5 million Urban Heat Island (UHI) mitigation grant program aimed at reducing extreme heat impacts and energy demand in overburdened communities.

Dr. Aileen Eagleton, a presenter and recent Eagleton fellow, told commissioners the program would use FY2026 Clean Energy Program funds to prioritize community-driven strategies and would offer grants in three tiers: up to $1,000,000 for large-scale, comprehensive interventions; up to $500,000 for projects that enhance cooling efficiency or resilience of community buildings; and up to $50,000 for smaller community-identified microclimate interventions. “This matter pertains to the establishment of an UHI mitigation program in which the board would contribute $5,000,000 in funds from the fiscal year 2026 New Jersey Clean Energy Program,” Eagleton said during the presentation.

Staff said the program aligns with the 2019 Energy Master Plan, the Extreme Heat Resilience Action Plan, the Priority Climate Action Plan and uses RGGI strategic funding, and that it follows a similar framework to the BPU’s Community Energy Grant program. Commissioners praised the proposal as a targeted use of clean-energy funds for communities facing the worst heat-related impacts; one commissioner thanked presenters for “bringing this very important issue to our attention.”

The board voted by roll call to approve the establishment and funding structure for fiscal year 2026. Staff will proceed with program implementation and grant application details, including outreach and prioritization processes for overburdened communities.

The board’s approval concludes the agenda consideration; staff will post implementation guidance and next steps on the BPU website.