⚡ 40 MILLBURY RD

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 development of a distribution-scale (≤5MW) Battery Energy Storage System (BESS) at the 12.58-acre parcel located at 40 Millbury Rd, Oxford, MA. The analysis concludes with a suitability score, risk assessment, and a final recommendation on whether to proceed with this site.

1. Site Access & Topography

Road Access & Equipment Delivery: The property has frontage on Millbury Road, which appears to be a two-lane, paved local road based on preliminary mapping. The quality of this road appears sufficient for standard construction traffic. However, a formal road survey is required to confirm weight limits and turning radii for oversized and overweight vehicles, such as a large crane for setting transformers and the flatbed trucks delivering battery containers and power conversion systems (PCS).

Terrain & Buildability: Based on satellite imagery and the "Forest Land" use code, the site is heavily wooded and appears to have some rolling topography characteristic of central Massachusetts. Significant tree clearing and grading will be required, increasing site preparation costs and potentially triggering local tree removal ordinances. The presence of bedrock is common in this region and must be investigated with a geotechnical survey, as it can dramatically increase foundation costs. The ability for heavy equipment to traverse the site from the road to the project footprint is currently unconfirmed and depends heavily on topography and soil conditions.

Easement Concerns: Requires Verification. A title search is a critical next step to identify any existing utility, access, or conservation easements that may encumber the property. Given its "Private Preserve" and "Open Space" designation, there is a moderate-to-high risk of a conservation easement that could prohibit development entirely. We must also secure a formal access easement from the owner if the optimal access point is not already established.

2. Environmental Constraints

FEMA Flood Zone: The FEMA flood zone designation is listed as "Unknown." This is a critical data gap. Any location within a 100-year floodplain (e.g., Zone A, AE) would render the site largely undevelopable for critical infrastructure like a BESS or would require elevating all equipment above the Base Flood Elevation, adding significant cost and permitting complexity.

Wetlands: The wetlands status is "Unknown." This represents a major risk in Massachusetts, which has stringent state (Massachusetts Wetlands Protection Act) and local wetland protection bylaws. Given the forested nature of the site, the presence of jurisdictional wetlands is highly probable. A formal wetland delineation is required immediately to determine the extent of wetlands and associated buffer zones (typically 100 feet), which will directly impact the buildable acreage.

Habitat & Species: The site is not within a designated critical habitat or protected area, which is a positive finding. However, a desktop review using the USFWS IPaC tool should still be conducted to screen for potential endangered species (e.g., Northern Long-Eared Bat) whose presence could trigger tree clearing restrictions or require further consultation.

Brownfield/Superfund Status: The absence of nearby brownfield or superfund sites means there is a low risk of pre-existing contamination. However, this also means the site is ineligible for the 10% IRA Brownfield Adder, which is a missed opportunity for enhanced project economics.

Pipeline Proximity: No major gas pipelines are located within three miles, which is a significant safety and design advantage, eliminating concerns around blast radii and pipeline-related setbacks.

3. Grid Infrastructure & Interconnection

Substation & Transmission Proximity: The nearest substation, NORTH OXFORD, is 1.5 miles away and has a 115 kV bus. A 345 kV transmission line is 0.9 miles away. For a distribution-scale project (≤5MW), interconnecting at either of these points is financially and technically infeasible. The cost of a 0.9- to 1.5-mile line build at either transmission or sub-transmission voltage would be several million dollars and would subject the project to the complex and lengthy ISO-New England transmission study process.

Likely Interconnection Point & Voltage: The only viable path for a project of this scale is to interconnect to a local distribution feeder. Requires Verification. We must identify if a 3-phase distribution circuit exists along Millbury Road. The interconnecting utility is likely National Grid. A pre-application must be filed with them immediately to confirm the presence, voltage (likely 13.8 kV), and available capacity of the nearest feeder. The lack of a suitable 3-phase feeder at the road would be a fatal flaw.

Estimated Costs & Timeline: Assuming a viable distribution feeder exists at the road, interconnection costs would still include line extension onto the property, protection and control upgrades, and a recloser. A conservative estimate would be $500,000 - $1,500,000. If significant upstream upgrades are required by National Grid (e.g., substation breaker replacement, reconductoring), costs could escalate dramatically. The interconnection study process in Massachusetts with National Grid can take 18-24 months, followed by another 12-18 months for construction, leading to a total timeline of 30-42 months to commercial operation.

4. Regulatory & Zoning Analysis

Authority Having Jurisdiction (AHJ): The Town of Oxford, MA.

Zoning Compatibility: The current zoning is listed as R-1 (Residential) and described as "Private Preserve, Open Space-Vacant Land." This is a major impediment. BESS facilities are typically considered an industrial or utility use and are fundamentally incompatible with residential and open space zoning districts. Development is not a by-right use.

Permitting Pathway: The project will, at a minimum, require a Special Permit from the Oxford Planning Board and/or a Use Variance from the Zoning Board of Appeals (ZBA). A Use Variance is extremely difficult to obtain in Massachusetts, as it requires proving a unique hardship related to the land itself. A Special Permit process is discretionary and invites significant public scrutiny and opposition, especially from abutters in a residential zone. This represents the single greatest risk to the project.

Regulations & Risks: We must immediately review the Town of Oxford Zoning Bylaws for any specific provisions related to Battery Energy Storage or renewable energy facilities. Many Massachusetts towns have enacted or are considering BESS-specific moratoriums or restrictive bylaws with large setbacks (e.g., 250-500 feet from property lines), noise limitations, and stringent fire safety requirements. The risk of a moratorium being enacted during the lengthy permitting process is moderate to high.

5. IRA/ITC Incentive Analysis

ITC Adders: The property has been screened and does not qualify for any of the three primary domestic content-independent ITC adders:

• Opportunity Zone: No
• Energy Community: No
• Low-Income Community: No

Cumulative ITC: The project is only eligible for the base 30% Investment Tax Credit (assuming prevailing wage and apprenticeship requirements are met). The lack of any 10% adders places this site at a significant economic disadvantage compared to sites that qualify for a 40% or 50% ITC, impacting its competitiveness and potential profitability.

6. BESS Score & Rationale

Overall BESS Suitability Score: 28