Newsroom & Public Notices

TRENTON, N.J. – July 17, 2025 – The New Jersey Board of Public Utilities (NJBPU), in consultation with the New Jersey Department of Environmental Protection (NJDEP) and the New Jersey Interagency Council on Climate Resilience, today announced the launch of the Urban Heat Island (UHI) Mitigation Program, a $5 million initiative to help New Jersey’s most vulnerable communities combat extreme heat and rising energy costs this summer.

An urban heat island occurs when cities and densely developed areas become significantly hotter than nearby rural regions, especially in summer. The prevalence of impervious surfaces, such as pavement and buildings, results in heat retention, while a lack of trees and green spaces limits natural cooling.

“With more severe and frequent extreme weather events becoming our new normal, New Jersey is taking a whole-of-government approach to mitigate the worst impacts of extreme heat,” Governor Phil Murphy said. “We are committed to supporting every municipality across the state to protect the health and well-being of residents and businesses.”

In New Jersey, cities like Newark, Trenton, Camden, and Jersey City are among the Northeast’s most intense UHIs, alongside New York City, Boston, and Philadelphia. These population centers can be more than 5°F—and sometimes more than 20°F—hotter than surrounding areas, driving up energy bills, health risks, and stress on power grids.

"Extreme heat doesn't just threaten our health and safety—it drives energy costs through the roof, hitting hardest in communities already facing intensified heat from the Urban Heat Island effect," NJBPU President Christine Guhl-Sadovy said. "The NJBPU has a fundamental responsibility to ensure reliable, affordable energy for all New Jerseyans, which means tackling the contributory causes of energy demand.

The UHI Mitigation Program for Fiscal Year 2026 (FY2026), funded by the New Jersey Clean Energy Fund, will provide grants in three categories:

Comprehensive UHI Interventions: Up to $1 million each for two major neighborhood revitalization projects, including expanded tree canopy, green infrastructure, cool pavements, smart-misting systems, and other cooling infrastructure.

Cooling the Built Environment: Up to $500,000 each for four upgrades to public buildings and cooling centers, with features like cool roofs, green roofs, geothermal heat pumps, and battery storage to create resilience hubs — especially vital for communities with a high percentage of renters.

Urban Micro-climate Interventions: Up to $50,000 each for 20 community-led projects such as shaded bus stops, community gardens, and water stations. All projects must be located on public land or in publicly accessible spaces.

"This program leverages the NJCEF to deploy proven solutions that will help reduce peak electricity loads and deliver measurable relief to ratepayers while protecting our most vulnerable residents," Guhl-Sadovy said.

Building on that framework, the NJDEP emphasized the program's evidence-based approach and community-focused flexibility.

“Through the Extreme Heat Resilience Action Plan, developed by the Interagency Council on Climate Resilience, the Murphy Administration has established clear goals and actions to reduce the dangerous and even deadly impacts of extreme heat,” Environmental Protection Commissioner Shawn M. LaTourette said. “The Urban Heat Island Initiative builds on this work by providing funds to help our most vulnerable communities develop solutions that will better protect residents from the growing public health threat posed by a warming climate.”

Immediate and Long-Term Benefits: The UHI Mitigation Program aims to:

• Reduce heat-related illnesses and deaths
• Lower energy costs and reduce strain on the electrical grid
• Support economic stability by preventing productivity losses and reducing healthcare costs
• Improve air quality and quality of life in urban neighborhoods
• Increase urban biodiversity and climate resilience
• Increase amenities in public spaces to increase community connections

Record-Breaking Heat Highlights Urgency: The launch comes on the heels of a major heatwave in New Jersey and the surrounding region. From June 17–24, 2025, Newark shattered records, reaching 103°F and breaking its previous June high by six degrees. Atlantic City and several other towns, including Hackettstown, Hammonton, Lower Alloways Creek, Oswego Lake, and Vineland, all exceeded 100°F. Humidity increased “feels like” temperatures to 105°F, causing widespread power outages, buckling on parts of the I-287 South roadway, and surges in emergency room visits across the state, underscoring the critical importance of putting health and safety front and center for New Jersey families, especially those with vulnerable members like children and the elderly.

How Urban Heat Islands Skyrocket Costs: UHIs dramatically increase energy use and costs for residents and businesses. For every 1°C increase in temperature, peak electricity load can rise by up to five percent, and up to 19 percent of annual cooling costs are directly linked to the heat island effect. This means higher utility bills, putting additional financial strain on low-income households already facing high energy burdens. Increased demand strains local power grids, raising the risk of outages and costly emergency repairs.

Extreme heat is the leading cause of weather-related deaths in the U.S., and healthcare costs linked to heat now exceed $1 billion annually, according to a 2023 report from the Center for American Progress and Virginia Commonwealth University (VCU).

Prioritizing Public Health for New Jersey’s Vulnerable Communities: UHIs arose from decades of systemic inequities, including historic redlining and ongoing disinvestment, leaving communities of color and low-income communities with minimal access to green infrastructure. Additionally, extreme heat disproportionately impacts the elderly, children, outdoor workers, and those with pre-existing health conditions. The UHI Mitigation Program provides funding for projects in overburdened municipalities and encourages strong partnerships with community-based organizations to ensure projects address local needs.

A Comprehensive State Response: To address the current and increasing impacts of climate-driven extreme heat on the state, the New Jersey Interagency Council on Climate Resilience released the Extreme Heat Resilience Action Plan in 2024.

"The Resilience Action Plan represents a truly holistic strategy, recognizing that safeguarding New Jerseyans from extreme heat demands a coordinated effort across all levels of government and community," said Nick Angarone, New Jersey's Chief Resilience Officer and Manager of the Office of Climate Resilience at NJDEP. "The plan mobilizes 136 actions, with critical leadership from NJBPU on energy infrastructure and urban cooling, ensuring we build durable, equitable resilience in every corner of our state."

The State's multi-faceted approach includes but is not limited to:

The Cool Cities Initiative, launched in 2003 by the NJDEP and NJBPU, began as a pioneering effort to reduce urban heat by planting trees in underserved neighborhoods, starting with 3,000 trees in Trenton and Paterson. An evaluation later found that 2,000 trees planted in 2006 alone produced 196 MWh in annual energy savings by lowering cooling demands. Today, the initiative has evolved into a broader statewide effort through the expansion of New Jersey’s Urban & Community Forestry Program, which aims to increase tree canopy in urban areas to reduce summer sunlight by 10–30 percent while preserving winter sunlight through the use of deciduous trees. Complementary programs like Newark’s “Rooted In Newark” plan and the New Jersey Tree Foundation’s Green Streets initiative continue to support these goals by expanding tree cover, promoting species diversity, and engaging residents in long-term care and climate resilience planning, keeping the core mission of Cool Cities alive and effective statewide.

Transportation Infrastructure: Improvements include better-shaded bus shelters and enhanced cooling at transit hubs. These upgrades reduce heat exposure for transit riders, making public transportation more comfortable and accessible during extreme summer temperatures.

Outreach and Education: Members of the Interagency Council coordinate efforts to provide the public with information and education to raise awareness about extreme heat and its impacts, including a series of public education webinars focused on raising awareness among residents, and online resources such as the Heat-related Illness Dashboard.

For more information on New Jersey’s comprehensive Extreme Heat Resilience Action Plan, please visit here.

How and When to Apply: The Notice of Funding Availability will be published to the New Jersey Register in August 2025. Applications open in September 2025 and will be accepted for 90 days, closing in December. Grant awards are expected to be announced in spring 2026, with funded projects beginning by summer 2026. For updates, eligibility details, and application instructions, visit www.nj.gov/bpu.

About the New Jersey Board of Public Utilities (NJBPU)

NJBPU is a state agency and regulatory authority mandated to ensure safe, adequate and proper utility services at reasonable rates for New Jersey customers. Critical services regulated by NJBPU include natural gas, electricity, water, wastewater, telecommunications and cable television. The Board has general oversight and responsibility for monitoring utility service, responding to consumer complaints, and investigating utility accidents. To find out more about NJBPU, visit our website at www.nj.gov/bpu.