⚡ 40 MILLBURY RD

MEMORANDUM

TO: Sunland America Corp. Development Committee

FROM: Senior BESS Site Evaluation Analyst

DATE: October 26, 2023

SUBJECT: Comprehensive Site Diligence Analysis for 40 Millbury Rd, Oxford, MA (APN: 16_D03)

This report provides a comprehensive due diligence analysis for the potential acquisition and development of a distribution-scale Battery Energy Storage System (BESS) at the subject property. The analysis covers key development pillars including site characteristics, environmental constraints, grid interconnection, regulatory hurdles, and financial incentives.

1. Site Access & Topography

Initial evaluation of the subject property reveals significant challenges related to physical access and site preparation. The parcel is located on Millbury Road, a local, two-lane road. While paved, its suitability for oversized and overweight loads, such as a 75-ton main power transformer or 40-foot battery containers on a lowboy trailer, is questionable and requires a formal route survey.

More critically, satellite imagery and parcel data suggest the property has limited or no direct, improved frontage on Millbury Road. It appears to be a "flag lot" or potentially landlocked behind other residential properties. This is a potential fatal flaw. Establishing legal and physical access would likely require negotiating and purchasing an easement from an adjacent landowner, adding significant cost, timeline risk, and complexity. The terrain is heavily wooded, consistent with its "Forest Land" classification. Development would necessitate extensive tree clearing, stumping, and grading, driving up site preparation costs substantially. The topography appears generally flat to gently rolling, but a formal survey is required to confirm this and identify any challenging slopes that would impact foundation design and stormwater management.

2. Environmental Constraints

The environmental profile presents moderate to high risk, primarily due to unknown factors.

• FEMA Flood Zone: The flood zone status is currently listed as "Unknown." A preliminary desktop review using the FEMA Map Service Center suggests the parcel is located in Zone X, an area of minimal flood hazard. However, this Requires Verification with a formal flood zone determination. Siting critical infrastructure outside of the 100-year and 500-year floodplains is a mandatory development requirement.
• Wetlands: The presence of wetlands is "Unknown." Given the undeveloped, forested nature of the site in a region like central Massachusetts, the probability of jurisdictional wetlands and associated streams is high. The Massachusetts Wetlands Protection Act (WPA) imposes stringent regulations, including a 100-foot buffer zone around most wetland resources, which could severely constrain the buildable area. A desktop screening is an immediate next step, to be followed by a formal wetlands delineation.
• Habitat & Species: The data indicates no critical habitat or protected areas on site, which is a positive. A check against the MA Natural Heritage & Endangered Species Program (NHESP) database is still recommended as a final verification step.
• Contamination: The absence of nearby brownfield or superfund sites is positive from a liability perspective but disadvantageous from a policy perspective, as the project will not qualify for the 10% IRA Brownfield tax credit adder.
• Pipelines: No major pipelines within three miles is a significant safety and layout advantage, eliminating setback and co-location risks.

3. Grid Infrastructure & Interconnection

The grid infrastructure presents a challenging but potentially viable scenario, albeit with high anticipated costs.

• Substation: The nearest substation is National Grid's North Oxford facility, located 1.5 miles from the site. This is a considerable distance for a new distribution line extension, which will be a primary cost driver. The substation's 115 kV bus indicates it is a transmission-level asset, but it almost certainly contains distribution voltage buses (e.g., 13.2 kV) from which a project of our target size (≤5MW) would be served.
• Transmission Lines: A 345 kV transmission line is closer (0.9 miles), but interconnecting a small 5 MW BESS at this voltage is technically and economically infeasible. This asset should be disregarded as a potential point of interconnection (POI).
• Interconnection Pathway: The recommended path is a new 3-phase overhead distribution feeder extension at the local utility voltage (Requires Verification, likely 13.2 kV) from the North Oxford substation to the project site.
• Estimated Costs & Timeline: A 1.5-mile distribution line extension in New England can be exceptionally expensive, likely in the range of $1.5M - $3.0M, depending on pole requirements, road crossings, and existing infrastructure. The Massachusetts interconnection process, managed by the state's DPU and utilities like National Grid, is notoriously backlogged and slow. A realistic timeline from application submission to commercial operation could easily exceed 36 months.

4. Regulatory & Zoning Analysis

The regulatory and zoning landscape represents the most significant barrier to development for this site.

• Jurisdiction: The Authority Having Jurisdiction (AHJ) is the Town of Oxford, MA.
• Zoning: The parcel is zoned R-1 (Residential) and designated as "Private Preserve, Open Space-Vacant Land." BESS is an industrial/utility use and is fundamentally incompatible with this zoning designation. It is not a by-right use.
• Permitting Pathway: Development would require, at a minimum, a Special Permit from the Oxford Planning Board and likely a Use Variance from the Zoning Board of Appeals. Obtaining a use variance is an exceptionally high bar, requiring the applicant to prove a unique hardship tied to the land itself. This path has a very low probability of success and invites significant local opposition from neighboring residential property owners.
• Risks: There is a high risk of community opposition ("NIMBYism") during public hearings. Furthermore, many Massachusetts municipalities are enacting moratoriums on BESS development to create specific bylaws. An immediate investigation