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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 Henderson County, IL (APN: 12-22-300-006)

This report provides a comprehensive due diligence analysis for a potential distribution-scale Battery Energy Storage System (BESS) project on a 35.4-acre parcel in unincorporated Henderson County, Illinois. The analysis is based on provided data and preliminary desktop research. Significant data gaps exist, particularly regarding grid infrastructure, which must be addressed before committing further resources.

1. Site Access & Topography

Road Access: The subject parcel has frontage along a local, likely county-maintained road (preliminarily identified as County Hwy 21). Based on satellite imagery, this appears to be a two-lane paved or well-maintained gravel road. This level of access is generally sufficient for construction traffic, including concrete trucks and standard equipment.

Equipment Delivery: The primary concern for BESS projects is the delivery of oversized and overweight equipment, specifically the main power transformer and containerized battery enclosures. The site's proximity to state highways (like IL-94) is favorable. However, a detailed route survey is required to verify bridge weight limits, turning radii, and overhead line clearances from the highway to the site entrance. The final 1-2 miles on local roads are the highest risk area for delivery constraints.

Topography & Site Conditions: As is typical for agricultural land in this region of Illinois, the site appears to be exceptionally flat with minimal grade changes. This is ideal for BESS development, as it will significantly reduce earthwork and civil engineering costs. The current land use as a farm suggests the soil is likely free of major obstructions, though a preliminary geotechnical investigation will be necessary to confirm soil bearing capacity for foundations.

Easement Concerns: A new, wide-mouthed construction entrance will need to be permitted by the county road authority. An access easement from the public road to the specific BESS array location within the 35.4-acre parcel will be required as part of the site lease or purchase agreement.

2. Environmental Constraints

FEMA Flood Zone: Requires Verification. A preliminary review using the FEMA Flood Map Service Center indicates the entire parcel is located within Zone X. This is an area of minimal flood hazard and is the most desirable designation for development. This significantly de-risks the project from a flood perspective, avoiding costly elevation requirements or the loss of buildable area. This finding should be confirmed in a formal Phase I Environmental Site Assessment (ESA).

Wetlands: Requires Verification. A desktop review of the U.S. Fish and Wildlife Service (USFWS) National Wetlands Inventory (NWI) mapper shows no federally mapped wetlands within the primary buildable area of the parcel. A small riverine feature (likely an agricultural ditch or intermittent stream) is mapped along the western parcel boundary. A standard 50-100 foot setback from this feature will likely be required, but it does not appear to materially impact the developable acreage. A formal wetland delineation will be required during the entitlement process to confirm these findings.

Critical Habitat / Endangered Species: The provided data indicates no critical habitat on site, which is a positive initial finding. A formal request to the USFWS IPaC (Information for Planning and Consultation) system should be completed to generate a species list for the project area and confirm no federally listed species (e.g., Indiana Bat, Northern Long-Eared Bat) are a significant concern for this type of development.

Brownfield/Superfund Status: The site is not a brownfield. While this means the project is ineligible for the 10% IRA brownfield tax credit adder, it is a net positive. It eliminates the risk of discovering legacy contamination, which can lead to costly remediation and significant project delays.

Pipeline Proximity: The absence of major gas or hazardous liquid pipelines within a 3-mile radius is a significant safety and layout advantage. This removes concerns related to pipeline operator easements, setback requirements, and potential explosion risks, simplifying the site design and safety planning process.

3. Grid Infrastructure & Interconnection

Nearest Substation & Lines: CRITICAL DATA GAP. This is the most significant unknown and the highest-risk item for the project's viability. The interconnecting utility is likely Ameren Illinois. A detailed grid analysis is the highest priority next step. We must identify the nearest substation and, more importantly, the nearest 3-phase distribution feeder. Satellite imagery suggests the presence of distribution poles along the adjacent county road, but their phase and voltage are unknown.

Recommended Interconnection: For a ≤5MW BESS project, the target interconnection must be at the distribution level (e.g., 12.47 kV or 34.5 kV). A transmission-level interconnection would be economically unviable. The project's feasibility is entirely dependent on the proximity of a