NJ Cool Program

The NJ Cool Program was approved by the NJEDA Board on November 16, 2023. Additional notice will be made when applications are open. Please reach out to njcool@njeda.gov with any initial questions in the interim or if you would like to be added to the program mailing list.

The NJ Cool program is a $15 million pilot program launched by the New Jersey Economic Development Authority (NJEDA) to provide financial assistance to commercial building owners and tenants undertaking retrofit construction projects that reduce operating greenhouse gas emissions from existing commercial buildings in Newark, Edison, and Atlantic City.

The NJEDA will provide grant awards ranging from $50,000 to $1 million to reimburse applicants for eligible hard construction costs from projects that upgrade building heating and cooling systems to less polluting alternatives, as well as implement other energy efficiency measures or on-site renewables. This pilot is funded by the Regional Greenhouse Gas Initiative (RGGI) proceeds allocated to NJEDA and will accelerate the adoption of more environmentally friendly building systems, technologies, and construction practices within New Jersey.

AMOUNT

Grant awards will cover 50% of eligible project costs up to a maximum award of $1,000,000 per project (with a minimum award amount of $50,000 per project).

BENEFITS

Commercial building owners and tenants receive funding for retrofit projects that can:
A. Reduce operating greenhouse gas emissions that contribute to climate change
B. Improve indoor and
outdoor air quality
C. Reduce energy costs

ELIGIBILITY

Eligible applicants may own or lease the building space that will be improved using the grant funding. If the space is leased, the Applicant must provide a certification from the landlord that they have reviewed and approved the proposed project details.
Additionally, building owners or tenants (with building owner approval) of existing commercial buildings located in Newark, Edison, and Atlantic City are eligible.

ELIGIBILITY
GRANT AWARD
APPLICATION PROCESS
FEES

ELIGIBILITY REQUIREMENTS

Applicant

Applicants must meet the following eligibility requirements:

Commercial building owner or a commercial tenant with landlord/building owner approval to complete the proposed project
Have a valid New Jersey tax clearance certificate no older than 180 days at time of application approval
Be in good standing with the New Jersey Department of Labor and Workforce Development and New Jersey Department of Environmental Protection
Demonstrate proof of funding/financing for the estimated project costs plus 15% project contingency following grant award approval and before finalizing grant agreement
Participants in the NJ Clean Energy New Construction Program (Gut Rehab) or Large Energy Users Program are not eligible to participate in the NJ Cool Program Pilot

Building

Buildings must meet the following eligibility requirements:

Existing building located in the municipality of Newark, Edison, or Atlantic City
Meet building occupancy class Mercantile Group M, Assembly Group A-2, Business Group B per Chapter 3 of the New Jersey Building Code. For mixed-use buildings with multiple occupancy classes, project improvements must at least affect space inside the building that meets at least one of these three occupancy classes. Excluded from Business Group B are Airport traffic control towers, civic administration, educational occupancies above the 12th grade, and post offices.

Project

Projects must meet the following eligibility requirements:

All work must be conducted in accordance with NJ prevailing wage and affirmative action requirements
Total eligible project costs must be greater than or equal to $100,000 (there is no upper limit to project costs)
Not consist of new construction or enlargements (adding square footage to the building)
Project scope must include:

A. Switching (75% or more) of building space heating loads from existing fossil fuel-based combustion systems to non-combustion-based heating systems with low to zero direct operating emissions.

and/or

B. Replacing (75% or more) of existing high global warming potential (GWP) refrigerants with lower GWP alternatives.

Plus, optionally

C. Supporting work that further reduces operating emissions and/or improves energy efficiency of the building, including but not limited to:

Installing on-site renewable energy generation and/or storage systems
Upgrading electric service and/or electric panels
Replacing gas powered appliances (ex: hot water heaters, clothes dryers, kitchen equipment) with electric alternatives
Installing building management systems or energy load controls
Conducting weatherization or building envelope (ex: façade, doors, windows, insulation) upgrades
Installing heat recovery equipment
Replacing lighting with more efficient equipment and/or controls

Note, if the Applicant is a tenant, the minimum 75% switching requirement for heating load or existing refrigerants will only apply to the portions of the building within the tenant’s lease or the building systems affecting the tenant’s space within the overall building.

GRANT AWARD

Maximum grant award will be calculated based on 50% of total eligible project costs. Grant awards will be a minimum of $50,000 with a capped maximum award amount of $1,000,000 per project. Grant awards will be calculated based on eligible project costs net of any expected incentive payments from NJ BPU/Clean Energy Programs or New Jersey utility programs.

Eligible Project Costs:

Materials, labor, and/or equipment provided by Publics Work contractor that are directly related to emissions reductions/energy efficiency improvements or enabling work necessary for proposed emissions reducing/energy efficient building systems to be operational (i.e., upgrading electric panels, structural improvements for rooftop solar or HVAC systems)
Equipment and/or materials procured directly by the Applicant that are directly related to emissions reductions/energy efficiency or enabling work necessary for proposed emissions reducing/energy efficient building systems to be operational

Ineligible Project Costs:

Soft costs: including but not limited to energy audits, design professional services, 3rd party construction management costs, permitting fees, commissioning costs, inspection fees
Interior finish improvements and upgrades not related to operating energy/emissions reductions (ex: flooring, artwork)
Other building system upgrades not related to operating energy/emissions reductions (ex: fire sprinklers, security cameras), even if required for overall building code compliance
Furniture: non-permanent items (ex: desks, chairs, cabinets)
Prior energy efficiency/emissions reductions improvements began or completed before time of application approval
New construction, including enlargements or additions to existing buildings that increase overall building square footage
Facility or site acquisition
Fines incurred because of code or zoning violations during construction project(s) associated with this grant

APPLICATION PROCESS

Applications will be reviewed on a rolling basis. Applications will go through the following review process:

Step 1: Applicants submit application and supporting documents, requesting a grant award amount based on estimated eligible construction costs.

Step 2: NJEDA reviews application materials and if acceptable provides approval of a maximum grant award amount.

Step 3: Applicant has 2 months from application approval to provide proof of funding for estimated project costs plus an additional 15% contingency.

Step 4: NJEDA reviews proof of funding documentation. If acceptable, applicant will enter into grant agreement with NJEDA.

Step 5: Applicant has 6 months from completion of grant agreement to begin construction activities on the building site.

Step 6: Applicant has 2 years from start of construction to complete construction and submit proof of expenses for reimbursement. Applicant can submit proof of expenses for reimbursement in two occurrences: When 50% of estimated eligible project costs are incurred by the applicant and when project construction is fully complete. In order to be eligible for reimbursement, the Applicant’s project must be in compliance with NJ Prevailing Wage and Affirmative Action requirements.

FEES

Application fee: non-refundable $1,000 fee for applying to the program.

Fossil fuel-based combustion heating systems: Heating systems that burn fossil fuels (i.e.: natural gas, propane, heating oil) to warm interior building spaces through distribution of hot air, water, steam, or another medium.

Non-combustion-based heating systems with low to zero direct operating emissions: Heating systems that don’t burn any material to warm interior spaces. Examples include but are not limited to air source heat pumps, ground source heat pumps, water source heat pumps, or variable refrigerant flow (VRF) systems.

Commercial building: Meet building occupancy class Mercantile Group M, Assembly Group A-2, Business Group B per Chapter 3 of the New Jersey Building Code. For mixed-use buildings with multiple occupancy classes, project improvements must affect space inside the building that meets at least one of these three occupancy classes. Excluded from Business Group B are Airport traffic control towers, civic administration, educational occupancies above the 12th grade, and post offices.

PROGRAM GUIDE

Eligibility Requirements
Grant Award
Application Process
Fees

PROGRAM Board Memo FREQUENTLY ASKED QUESTIONS NJ RGGI STRATEGIC FUNDING PLAN

QUESTIONS

If you want to be included in future outreach or have questions about the NJ Cool Pilot Program, contact NJEDA at njcool@njeda.gov.