⚡ 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)

1. Site Access & Topography

Initial analysis of the subject parcel at 40 Millbury Rd reveals significant challenges related to site access and buildability. The property is a 12.58-acre, heavily wooded, undeveloped parcel located behind existing residential homes on Millbury Road. There is no direct, improved road frontage.

• Road Access & Equipment Delivery: Access appears to be limited to a narrow, unpaved path or driveway that may cross adjacent privately-owned parcels. Millbury Road itself is a local, two-lane road that may present challenges for oversized and overweight loads, such as a main power transformer or multiple BESS container units. A formal route survey would be required, but the primary obstacle is the lack of direct, established access from the public right-of-way to the parcel itself.
• Terrain Characteristics: Based on aerial imagery and the "Forest Land" classification, the site is presumed to be heavily forested with potentially uneven topography, characteristic of Worcester County. Significant tree clearing, grubbing, and grading will be required, adding considerable cost and potential permitting complexity (e.g., tree removal ordinances).
• Heavy Equipment Feasibility: Access for heavy equipment is currently considered infeasible without significant improvements. A new, engineered access road capable of supporting 80,000-lb loads would need to be constructed. This is contingent upon securing the legal right to do so.
• Easement Concerns: A dedicated, permanent access and utility easement from Millbury Road to the project site is a mandatory prerequisite. This would require negotiation and acquisition from one or more adjacent landowners. This process introduces significant timeline risk, cost uncertainty, and a high potential for failure. This is a potential fatal flaw for the project.

2. Environmental Constraints

The site's undeveloped nature presents a moderate-to-high risk of environmental constraints that could reduce buildable area and increase costs.

• FEMA Flood Zone: The FEMA flood zone designation is currently unknown and Requires Verification via the FEMA Map Service Center. Any presence of a Special Flood Hazard Area (e.g., Zone A, AE) would likely render portions of the site undevelopable or require costly mitigation, such as elevating all equipment above the Base Flood Elevation.
• Wetlands: The presence of state or federally regulated wetlands is Requires Verification but is considered highly likely on a wooded, undeveloped parcel in this region. A formal wetland delineation study would be a critical next step. The Massachusetts Wetlands Protection Act imposes stringent regulations, including 100-foot buffer zones where activity is restricted, which could severely constrain the site layout.
• Critical Habitat / Endangered Species: The provided data indicates no known critical habitat. However, this should be confirmed with a desktop screening using the Massachusetts Natural Heritage & Endangered Species Program (NHESP) database to ensure no state-listed species or priority habitats are present.
• Brownfield/Superfund Status: The site is not a brownfield, which means there is a lower risk of legacy contamination issues. However, this also means the project is ineligible for the 10% IRA Brownfield ITC adder, which is a financial disadvantage.
• Pipeline Proximity: No major gas pipelines are located nearby, which is a positive safety factor, eliminating the need for specialized pipeline impact studies and setbacks.

3. Grid Infrastructure & Interconnection

The site's proximity to high-voltage infrastructure presents a challenging and likely high-cost interconnection scenario for a distribution-scale project.

• Nearest Substation & Transmission: The North Oxford substation is 1.5 miles away with a maximum voltage of 115 kV. A 345 kV transmission line is also located 0.9 miles away. Both are high-voltage, transmission-level assets.
• Recommended Interconnection Voltage: For a ≤5MW BESS, a transmission-level interconnection at 115 kV is technically feasible but economically challenging. The ideal Point of Interconnection (POI) would be a local 3-phase distribution feeder (e.g., 13.8 kV). The presence, capacity, and proximity of such a feeder are unknown and represent a critical data gap.
• Estimated Cost & Timeline: Interconnecting at the 115 kV North Oxford substation would require a 1.5-mile dedicated transmission line (gen-tie) and a new project-specific substation with a step-up transformer. The cost for this scope would likely be in the $2.5M - $4.0M+ range. The timeline, managed through ISO-New England's complex interconnection process, would likely exceed 36 months from application to commercial operation. A distribution-level interconnection, if available, would be significantly cheaper and faster but is unconfirmed.
• Utility & Process: The interconnecting utility is likely National Grid. Their transmission interconnection process is governed by ISO-NE tariffs, which are known for being lengthy and expensive. The distribution-level queue is separate but also often congested in Massachusetts.
• Feeder Configuration: Requires Verification. A pre-application report request to National Grid is essential to identify the nearest 3-phase distribution circuit and its available capacity.

4. Regulatory & Zoning Analysis

The regulatory and zoning landscape for this parcel is the most significant barrier to development and represents a likely fatal flaw.

• Authority Having Jurisdiction (AHJ): The Town of Oxford, MA Planning Board and Zoning Board of Appeals.
• Zoning Compatibility: The parcel is zoned R-1 (Residential) and designated as "Private Preserve, Open Space-Vacant Land." Battery energy storage is an industrial utility use and is fundamentally incompatible with this zoning designation. It is almost certain that BESS is not a permitted use by-right.
• Permitting Pathway: The path to entitlement is exceptionally difficult. It would likely require, at a minimum, a Use Variance from the Zoning Board of Appeals, which requires proving a legal hardship, and a Special Permit from the Planning Board. A full rezoning of the parcel is another possibility, but this is a political, lengthy, and highly uncertain process. The likelihood of success is extremely low.
• Setback Requirements: Requires Verification. The Town of Oxford's zoning bylaws must be reviewed for any specific BESS or utility-use setbacks. In the absence of specific rules, significant setbacks from the adjacent residential properties (e.g., 200+ feet) would likely be imposed.
• Moratorium/Restriction Risk: High. Many municipalities in Massachusetts have enacted or are considering moratoriums on BESS and solar development to create specific regulations. An immediate inquiry with the Oxford Town Planner is needed to determine if any such restrictions are in place or contemplated.

5. IRA/ITC Incentive Analysis

The project's eligibility for federal incentives is minimal, placing it at a significant financial disadvantage compared to other potential sites.

• Opportunity Zone: No. Not eligible for the 10% adder.
• Energy Community: No. Not eligible for the 10% adder.
• Low-Income Community: No. Not eligible for the 10% or 20% adder.
• Potential Cumulative ITC Adder: 0%. The project would only be eligible for the 30% base ITC. This lack of "stackable" credits makes the project's financial pro forma much more challenging to pencil out.

6. BESS Score & Rationale

Overall BESS Suitability Score: 22 / 100

• Location (3/20): Poor. The site is landlocked