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MEMORANDUM

TO: Sunland America Corp. Development Team
FROM: Senior BESS Site Evaluation Analyst
DATE: October 26, 2023
SUBJECT: Comprehensive Site Diligence Analysis for APN 33-05-100-022, Vermilion County, IL

This report provides a comprehensive due diligence analysis for a 20.14-acre parcel in unincorporated Vermilion County, Illinois, for its potential as a distribution-scale Battery Energy Storage System (BESS) project. The analysis identifies critical data gaps and outlines a clear path for further investigation.

1. Site Access & Topography

Road Access & Equipment Delivery: Based on preliminary satellite imagery review, the parcel appears to have frontage on a county-level road, likely gravel or a two-lane paved road. The quality of this road is a key unknown and Requires Verification via a site visit. The primary concern is whether the road and any local bridges are rated for heavy haul trucks carrying multi-ton equipment, such as a 25-ton step-up transformer and 30-ton battery containers. We must verify that access from the nearest state highway does not involve tight turns, low-clearance overpasses, or residential streets where such traffic would be prohibited.

Terrain & Buildability: Vermilion County is characterized by flat, agricultural terrain. It is highly probable that the site is level with minimal grade, which is ideal for minimizing civil engineering and earthwork costs. However, a formal topographic survey will be required to confirm this and to plan for site drainage. The existing land use as a farm suggests the soil is likely suitable for standard foundations, but geotechnical studies will be necessary to confirm soil bearing capacity.

Easement Concerns: A title report is required to identify any existing access, utility, or drainage easements that may encumber the property and reduce the buildable area. We must also confirm that the site has direct, legal access to the public road. If access is through an informal farm path or across an adjacent parcel, a formal, permanent access easement must be secured.

2. Environmental Constraints

Flood & Wetlands: The FEMA flood zone and presence of wetlands are currently unknown and represent a significant potential risk. A desktop analysis using the FEMA Flood Map Service Center and the National Wetlands Inventory (NWI) must be conducted immediately. If the site is within a 100-year floodplain (e.g., Zone A or AE), it would likely render the project economically unviable due to the high cost of elevating all equipment. Similarly, the presence of delineated wetlands would trigger significant setbacks (typically 50-100 feet), reducing the buildable envelope and potentially requiring costly permits and mitigation.

Habitat & Protected Species: The data indicates no critical habitats on site, which is a positive initial finding. A Phase 1 Environmental Site Assessment (ESA) should still include a review of the US Fish & Wildlife Service IPaC tool and state-level databases to screen for any endangered or threatened species (e.g., Indiana Bat, Northern Long-Eared Bat) whose presence could impact construction timing or require mitigation.

Contamination Risk: The presence of a brownfield/superfund site within two miles is a noteworthy risk. While the project site itself is agricultural and unlikely to qualify for the 10% IRA brownfield bonus adder, the proximity of a known contamination site necessitates a robust Phase 1 ESA. The ESA must determine if the nearby site is upgradient and poses a risk of soil or groundwater contamination to our parcel through contaminant migration.

Other Considerations: The absence of pipelines within a three-mile radius is a significant safety and layout advantage, eliminating the need for pipeline-specific setbacks and safety protocols.

3. Grid Infrastructure & Interconnection

Grid Proximity & Voltage: This is the most critical unknown and a potential fatal flaw for the project. There is no identified substation or distribution feeder. The nearest identified infrastructure is a 345kV transmission line two miles away, which is not a viable Point of Interconnection (POI) for a ≤5MW project due to prohibitive costs. The immediate priority is to conduct a desktop grid analysis to locate the nearest Ameren Illinois distribution substation and, more importantly, a 3-phase distribution feeder adjacent to or crossing the property. The likely interconnection voltage will be on the distribution system, typically 12.47kV or 34.5kV in this region.

Interconnection Feasibility & Cost: Without an identified POI, estimating costs is highly speculative. Assuming a 3-phase feeder is on the adjacent road but requires capacity upgrades, interconnection costs could range from $750,000 to over $2,500,000. This would cover the gen-tie line, protective relaying, and potential reconductoring or substation breaker upgrades required by the utility. The timeline for interconnection with Ameren Illinois, from application to commercial operation, can realistically be 24-36 months, considering their study queue and construction lead times.

Utility Process: The interconnecting utility is almost certainly Ameren Illinois. The first formal step is to submit a generator interconnection application to enter