⚡ 40 MILLBURY RD

MEMORANDUM

TO: Sunland America Corp. Development Team

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 subject property. The analysis concludes that while the site has some proximity to grid infrastructure, significant and likely insurmountable regulatory hurdles, challenging site characteristics, and a lack of financial incentives make this a high-risk opportunity.

1. Site Access & Topography

• Road Access & Equipment Delivery: The property has frontage on Millbury Road, a two-lane, paved local road. Based on aerial imagery, this road appears suitable for standard construction traffic and semi-trucks delivering battery containers and other components. However, a detailed route survey is required to confirm turning radii, bridge weight limits, and the absence of low-hanging overhead lines from the nearest highway to the site entrance.
• Terrain Characteristics: The site is currently undeveloped, heavily forested land. Topographical maps for Worcester County indicate rolling hills are common in this area. Significant tree clearing and grading will be required, increasing site preparation costs and potentially impacting stormwater management design. A formal topographical survey is essential to quantify the earthwork required.
• Heavy Equipment Feasibility: Access for a large crane (for transformer placement) and heavy-haul trucks is feasible from Millbury Road, but an appropriate site entrance with a construction apron will need to be built. The primary concern is the internal site terrain; a level, compacted pad of approximately 1-2 acres will need to be created, and access roads must be built to support the weight of a fully loaded transformer delivery vehicle.
• Easement Concerns: A title search is required to identify any existing utility or access easements that may encumber the property. As the parcel is a single lot fronting a public road, a dedicated access easement is not anticipated to be necessary, but internal easements for other utilities could exist.

2. Environmental Constraints

• FEMA Flood Zone: The FEMA flood zone designation is currently listed as Unknown. This is a critical data gap. A desktop review using the FEMA Flood Map Service Center must be conducted immediately. If any portion of the buildable area is within a Special Flood Hazard Area (e.g., Zone A, AE), it would necessitate elevating all equipment above the Base Flood Elevation, significantly increasing foundation costs and potentially rendering the project non-viable.
• Wetlands Presence: The presence of wetlands is Unknown but is considered a high risk given the undeveloped, forested nature of the site in Massachusetts. The Massachusetts Wetlands Protection Act (WPA) and local Oxford Conservation Commission bylaws impose strict regulations, including significant buffer zones (typically 100 feet) where development is heavily restricted. A wetland delineation by a certified professional is a mandatory next step and could severely limit the buildable acreage.
• Critical Habitat / Endangered Species: Initial data indicates no critical habitat on site. However, it is imperative to conduct a desktop screening using the Massachusetts Natural Heritage & Endangered Species Program (NHESP) database to confirm there are no state-listed rare species or priority habitats that could trigger a lengthy and complex review process.
• Brownfield/Superfund Status: The site is not a brownfield, which is positive from a liability and cleanup perspective. However, this also means the project is ineligible for the 10% IRA Brownfield Adder, a significant disadvantage compared to competing projects on previously developed land.
• Pipeline Proximity: The absence of major gas pipelines within three miles is a significant safety and layout advantage, eliminating the need for specialized setbacks and consultations with pipeline operators.

3. Grid Infrastructure & Interconnection

• Nearest Substation: The North Oxford substation is 1.5 miles away. This is a considerable distance for a distribution-scale project. The substation's 115 kV bus indicates it is a transmission-level asset. While it will have significant capacity, a direct 115 kV interconnection for a 5MW BESS is not economically feasible due to the high cost of protection and transformation equipment.
• Transmission Line Proximity: A 345 kV transmission line is located 0.9 miles from the site. Tapping into this line is not a viable option for a project of this scale due to extreme costs and technical complexity. Its proximity offers no practical benefit.
• Recommended Interconnection Voltage: The most viable path would be to interconnect to a 3-phase distribution feeder, likely operating at 13.8 kV, originating from the North Oxford substation. A desktop utility map review is required to determine if such a feeder runs along Millbury Road adjacent to the property. If not, the project is likely non-viable.
• Estimated Cost & Timeline: Assuming a suitable distribution feeder is on the far side of Millbury Road, interconnection costs would still be significant, likely in the $1.5M - $3.5M+ range. This would cover the line extension, road crossings, utility upgrades, and required studies. If a 1.5-mile dedicated line back to the substation is required, costs could exceed $5M. The interconnection process in ISO-New England territory, managed by the interconnecting utility (Requires Verification: likely National Grid), is notoriously slow. A realistic timeline from application submission to Commercial Operation Date (COD) is 30-48 months.
• Feeder Configuration: Requires Verification. The immediate priority is to confirm the presence, voltage, and phase-count of the distribution lines along the site's road frontage.

4. Regulatory & Zoning Analysis

• Authority Having Jurisdiction (AHJ): 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 fatal flaw under most circumstances. BESS is an industrial/utility use and is fundamentally incompatible with residential and open space zoning designations.
• Permitting Pathway: A by-right pathway is impossible. The project would require, at a minimum, a Use Variance from the Zoning Board of Appeals (ZBA). Obtaining a use variance is legally challenging and requires proving a hardship unique to the property. A rezoning of the parcel is another theoretical path but is a lengthy, political, and highly uncertain process. Both pathways would face intense public opposition from neighboring residential properties.
• Setback Requirements: Specific BESS setbacks are likely not defined in Oxford's code. However, the underlying R-1 zoning will dictate substantial property line setbacks (e.g., 50-100 feet), further constraining the site layout on top of any environmental