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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 – Perry County, IL (APN 1540190190)

This report provides a comprehensive due diligence analysis for a potential distribution-scale Battery Energy Storage System (BESS) project on a 162.28-acre parcel in unincorporated Perry County, Illinois. The analysis concludes that the site possesses strong fundamental characteristics, particularly regarding buildability and IRA incentives, but carries a significant, unquantified risk related to grid capacity and interconnection cost. The final recommendation is contingent on clarifying this critical unknown.

1. Site Access & Topography

• Road Access & Equipment Delivery: The parcel has extensive frontage along its northern border with Illinois Route 154 (IL-154), a two-lane state highway. Based on satellite imagery review, this road appears to be well-maintained asphalt, fully capable of supporting heavy truck traffic, including flatbeds for battery containers, control houses, and transformers. Access points can likely be established directly from the highway, minimizing the need for new road construction.
• Terrain Characteristics: The site is exceptionally favorable from a topographical perspective. It is currently used for agriculture (row crops) and appears to be almost perfectly flat with minimal grade changes across the entire 162-acre expanse. This will dramatically reduce civil engineering and earthwork costs, which can be substantial on sloped sites.
• Heavy Equipment Access: Given the direct access from a state highway and the flat terrain, there are no apparent barriers to accessing the site with heavy equipment such as large cranes, drill rigs for foundations, and delivery vehicles for multi-ton transformers. The soil composition is unknown but is likely suitable for standard foundation designs given its agricultural use. Requires Verification: A geotechnical study will be required to confirm soil bearing capacity.
• Easement Concerns: As the site has direct frontage on a public right-of-way (IL-154), a dedicated access easement is not anticipated to be necessary for site ingress/egress. However, a utility easement will be required for the generator lead line connecting the BESS to the point of interconnection. The path and terms of this easement will depend on the final POI location.

2. Environmental Constraints

• FEMA Flood Zone: A preliminary review of FEMA Flood Insurance Rate Maps indicates the vast majority of the parcel is designated as Zone X, an area of minimal flood hazard. This is the most favorable designation and significantly de-risks the project, as it avoids the need for costly elevation of equipment or construction of flood barriers.
• Wetlands: A review of the U.S. Fish and Wildlife Service National Wetlands Inventory (NWI) mapper shows no federally mapped wetlands within the parcel boundaries. There are some mapped riverine and forested wetlands associated with Panther Creek to the east of the property. A conservative development plan should observe a 100-foot setback from these off-site features, which is easily achievable given the parcel's large size. Requires Verification: A formal wetlands delineation by a qualified consultant is required to confirm the absence of unmapped jurisdictional wetlands.
• Critical Habitat / Endangered Species: The provided data indicates no designated critical habitat or protected areas on or immediately adjacent to the site. The land's current use as active farmland makes it a low-risk environment for sensitive species.
• Brownfield/Superfund Status: The site is not a brownfield. While this avoids potential contamination and cleanup liabilities, it also means the project is not eligible for the 10% IRA brownfield tax credit adder.
• Pipeline Proximity: No major gas or hazardous liquid transmission pipelines are identified within a 3-mile radius, eliminating risks associated with pipeline setbacks and safety protocols.

3. Grid Infrastructure & Interconnection

• Nearest Substation: Requires Verification. No substation data was provided. However, satellite imagery analysis identifies a likely candidate: the Ameren Pinckneyville East Substation, located approximately 2.8 miles east of the site. The voltage class is unknown but is likely 69kV or 138kV on the high side, stepping down to a distribution voltage. The available capacity of this substation is the single largest unknown and the most critical risk factor for the project.
• Transmission & Distribution Lines: No transmission lines (>100kV) are within a 3-mile radius. Crucially, a three-phase overhead distribution feeder runs directly along the site's northern frontage on IL-154. This is a major advantage, making a distribution-level interconnection highly feasible from a physical standpoint.
• Recommended Interconnection: A distribution-level interconnection is the only viable path. The likely feeder voltage is 12.47kV or 34.5kV. A 5MW BESS project is well-suited for this type of interconnection.
• Estimated Cost & Timeline: Assuming the adjacent feeder has sufficient capacity and the POI is at the substation, costs could range from $1.5M to $4M+. If only minor protection upgrades are needed at the substation, costs will be lower. If the entire 2.8-mile feeder line requires reconductoring or a new dedicated feeder must be built, costs will be at the high end of or exceed this range. The timeline for an Ameren Illinois interconnection study process (application, feasibility, system impact, facilities study) is typically 18-24 months to a signed Interconnection Agreement (IA).
• Utility & Process: The likely interconnecting utility is Ameren Illinois. Developers must follow their formal generator interconnection process. Ameren's distribution queue can be congested, and early submission of a pre-application or formal application is critical to understanding project viability.
• Feeder Configuration: The line along IL-154 appears to be a standard radial feeder originating from the Pinckneyville East Substation.

4. Regulatory & Zoning Analysis

• Authority Having Jurisdiction (AHJ): Perry County. As the site is in an unincorporated area, the Perry County Board and its Planning & Zoning department will be the primary permitting authorities.
• Zoning Compatibility: The parcel is zoned for agricultural use. BESS facilities are not explicitly defined in the Perry County Zoning Ordinance. Typically, energy infrastructure projects like this are treated as a "Public Utility" or "Essential Service," which are generally allowable in agricultural zones via a discretionary permit.
• Permitting Pathway: The most likely pathway is a Special Use Permit (SUP) from the Perry County Board. This process involves a public hearing, review by the planning commission, and a final vote by the county board. It is not a by-right approval and carries political risk.
• Setback Requirements: Specific BESS setbacks are not defined. We should plan to meet the standard principal structure setbacks for the A-1 Agricultural District and propose additional, generous setbacks (e.g., 200+ feet from non-participating residences) to mitigate community concerns.