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 permits 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. These agreements can last up to 20 years and require approval from the New Jersey Board of Public Utilities (BPU) and the Division of Local Government Services (DLGS). The act delineates the roles of various stakeholders in the review and approval process, ensuring that energy efficiency, reliability, and fiscal integrity are prioritized.

Additionally, the act outlines a transparent procurement process for pilot agencies to solicit proposals from developers, conduct evaluations, and negotiate agreements, which includes public hearings and reports to foster community involvement. It allows for waivers of certain legal provisions to enhance project viability and emphasizes the need for timely reviews and approvals. The BPU is also mandated to submit a report on the act's implementation within four years. Overall, the bill aims to bolster energy resilience in New Jersey's town centers by facilitating the integration of distributed energy resources and ensuring that critical facilities can operate independently during power outages.