The "New Jersey Town Center Microgrid Pilot Program Act" establishes a framework for the development of Town Center Distributed Energy Resources Microgrids (TCDER Microgrids) aimed at supplying electrical power to critical facilities within municipalities. The act allows pilot agencies, which include municipal, county, or state entities that have participated in a feasibility study, to enter into project agreements and power purchase agreements (PPAs) with developers for the design, financing, construction, and operation of these microgrids. It outlines the roles of the New Jersey Board of Public Utilities (BPU) and the Division of Local Government Services (DLGS) in reviewing and approving these agreements, ensuring they align with criteria related to financial capacity, risk allocation, and public interest protections.

The act also details procedures for pilot agencies to solicit proposals from developers, conduct evaluations, and negotiate agreements, while mandating public hearings and the production of reports summarizing the evaluation process and public feedback. It allows for waivers of certain legal provisions to enhance project viability, emphasizing the importance of energy efficiency, reliability, and fiscal integrity in the development and operation of TCDER Microgrids. Furthermore, the act requires a report on the program's implementation to be submitted to the Governor and Legislature within four years of its effective date, reinforcing the commitment to enhancing energy resilience in New Jersey.