The "New Jersey Town Center Microgrid Pilot Program Act" establishes a framework for developing microgrids that supply electrical power to critical facilities within designated pilot agencies, which include municipal, county, or state government entities. The act allows these agencies to enter into project agreements and power purchase agreements (PPAs) with developers for the design, financing, construction, and operation of Town Center Distributed Energy Resources (TCDER) Microgrids. These agreements can last up to 20 years and must be reviewed and approved by the Division of Local Government Services and the Board of Public Utilities. The act also delineates the roles and responsibilities of various stakeholders in overseeing the development and operation of these microgrids.

Additionally, the act streamlines the process for pilot agencies to solicit proposals from developers, conduct evaluations, and negotiate agreements while ensuring public transparency through required public hearings and reports. It allows for waivers of specific legal provisions if necessary for project viability and encourages collaboration among involved agencies to develop energy-efficient and reliable microgrid systems. The act aims to enhance energy resilience and efficiency in New Jersey's critical facilities while maintaining fiscal integrity for the pilot agencies and developers involved.