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MEMORANDUM

TO: Sunland America Corp. Development Committee
FROM: Senior BESS Site Evaluation Analyst
DATE: October 26, 2023
SUBJECT: Comprehensive Site Diligence Analysis for Logan County, IL Property (APN: 07-036-017-00)

This report provides a comprehensive due diligence analysis for a prospective BESS development site consisting of approximately 126 acres in unincorporated Logan County, Illinois. The analysis identifies significant potential benefits, primarily related to federal incentives, but also flags critical, potentially fatal flaws related to grid infrastructure. A cautious and staged approach is strongly recommended.

1. Site Access & Topography

Road Access & Equipment Delivery: The property's specific road frontage is not provided and Requires Verification via a site visit and review of county GIS data. As typical agricultural land in Central Illinois, it is presumed to have frontage on a county or township road. The quality of these rural roads can vary significantly. A physical inspection is necessary to confirm if the road base, width, and turning radii are sufficient for heavy-haul trucks delivering multi-ton transformers and containerized battery systems. Any bridges or culverts on the access route must be assessed for their weight-bearing capacity.

Terrain Characteristics: Based on its location in Logan County and its current use as farmland, the topography is expected to be flat to gently rolling. This is highly advantageous, minimizing the need for extensive civil work and grading, thereby reducing construction costs and timelines. A formal topographical survey will be required to confirm elevations and drainage patterns for detailed engineering design.

Heavy Equipment Access: Feasibility is contingent on the quality of the adjacent public road. If the road is inadequate, a new, engineered access road from the nearest suitable thoroughfare would be required, adding significant cost and potentially requiring off-site easements. The large parcel size (125.94 acres) likely provides ample on-site space for staging and maneuvering equipment once access from the public right-of-way is achieved.

Easement Concerns: A title search is required to identify any existing access, utility, or agricultural easements that may encumber the property. It is critical to determine if the property has legal, insurable access or if an access easement must be negotiated and acquired from an adjacent landowner, which would introduce cost and schedule risk.

2. Environmental Constraints

FEMA Flood Zone: The FEMA flood zone designation is currently Unknown. This is a critical data gap. A review of FEMA's Flood Insurance Rate Maps (FIRMs) is an immediate next step. If a significant portion of the property lies within a Special Flood Hazard Area (e.g., Zone A or AE), it could render the site undevelopable or require costly mitigation, such as elevating all equipment pads and control houses above the Base Flood Elevation (BFE). This would severely impact project economics.

Wetlands: The presence of wetlands is Unknown. A desktop screening using the National Wetlands Inventory (NWI) database is required. Given the agricultural nature of the land, there is a moderate risk of drainage ditches, ponds, or palustrine wetlands. If the NWI screening indicates potential wetlands, a formal wetland delineation by a certified consultant will be necessary. Any jurisdictional wetlands would require significant setbacks (typically 50-100 feet), reducing the buildable acreage and constraining the site layout.

Critical Habitat / Endangered Species: The initial screening indicates no critical habitat or protected areas on site, which is a significant positive. However, a formal consultation with the Illinois Department of Natural Resources (IDNR) via their EcoCAT (Ecological Compliance Assessment Tool) and the US Fish and Wildlife Service's IPaC tool is still a required diligence step to confirm no state or federally listed species or their habitats are present.

Brownfield/Superfund Status: The site is not a brownfield, meaning it is not eligible for the 10% IRA brownfield tax credit adder. The absence of nearby superfund sites is a positive, indicating a low risk of pre-existing soil or groundwater contamination that could complicate construction and financing.

Pipeline Proximity: The absence of major pipelines within a 3-mile radius is a key safety and design advantage. This eliminates the need for significant safety setbacks and specialized construction protocols associated with building near high-pressure gas or hazardous liquid pipelines.

3. Grid Infrastructure & Interconnection

Nearest Substation & Utility: This is the most critical deficiency in the available data. The nearest substation, its distance, voltage, and available capacity are all Unknown. The interconnecting utility is also unidentified, but is likely Ameren Illinois or a rural electric cooperative. Identifying the local utility and the closest 3-phase distribution substation is the highest priority action item. Without a viable Point of Interconnection (POI), the site has no value.

Transmission & Recommended Voltage: A 138kV transmission line is located 1.7 miles away but is explicitly noted as "NOT AVAILABLE." This is a fatal flaw for a utility-scale project and forces the project to be evaluated for a distribution-level interconnection. The likely interconnection voltage would be a standard distribution class, such as 12.47kV or 34.5kV. This limits the project size, likely to a maximum of 5-10 MW, depending on the feeder's capacity.

Interconnection Cost & Timeline: Costs are highly speculative. A best-case scenario, where a robust 3-phase feeder with available capacity runs adjacent to the property, might involve costs of $500k - $1.5M for protection upgrades and a short line extension. A worst-case scenario, requiring a new multi-mile dedicated feeder from the substation or significant substation upgrades (e.g., new breaker/bay), could easily exceed $3M - $5M and push the timeline to 3