⚡ 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 property located at 40 Millbury Rd, Oxford, MA, for its potential as a distribution-scale Battery Energy Storage System (BESS) project. The analysis covers key development pillars including site characteristics, environmental constraints, grid infrastructure, regulatory hurdles, and financial incentives.

1. Site Access & Topography

Road Access & Equipment Delivery: The site benefits from access via Millbury Road, a public, paved, two-lane road. A preliminary review of satellite imagery suggests this road is adequate for standard construction traffic. However, a detailed logistics study is required to confirm turning radii for large trucks and clearance for low-boy trailers carrying battery containers and the main power transformer. The feasibility of delivering heavy equipment is considered high, but bridge weight limits and any local road restrictions must be verified.

Terrain & Buildability: The property is zoned as "Forest Land," indicating it is likely undeveloped and heavily wooded with rolling topography typical of Worcester County. Significant site work, including tree clearing, grubbing, and grading, will be required to create a level pad for the BESS compound. The "Buildability: OK" designation is noted, but the lack of specified "Buildable Acres" is a critical data gap. The actual usable area will be significantly reduced by setbacks, environmental constraints (e.g., wetlands), and steep slopes.

Easement Concerns: While direct road access is public, the primary easement concern relates to the grid interconnection. The data point "POI Onsite" is highly favorable, suggesting the utility easement may be contained entirely within the parcel boundaries. This must be confirmed, as any requirement to cross neighboring parcels would introduce significant cost, timeline, and negotiation risk.

2. Environmental Constraints

Flood Zone & Wetlands: The FEMA Flood Zone and Wetlands status are both listed as "Unknown." These represent the most significant environmental risks. Development within a designated flood hazard area (e.g., Zone A, AE) would require substantial civil engineering, potential elevation of all equipment, and may be prohibited by local ordinance. Similarly, Massachusetts has stringent wetland protection regulations (Massachusetts Wetlands Protection Act). The presence of state or federally regulated wetlands would trigger significant buffer/setback requirements (typically 100 feet or more), drastically reducing the buildable area. A desktop screening followed by a formal wetland delineation is an immediate priority.

Habitat & Contamination: The site shows no signs of being within a critical habitat, protected area, or near a brownfield/superfund site. This is a positive, reducing the risk of endangered species-related project delays or costly remediation. The absence of brownfield status, however, means the project is ineligible for the 10% IRA Brownfield tax credit adder.

Other Constraints: The site is not within the Chesapeake Bay Critical Area (N/A for Massachusetts). The absence of pipelines within a three-mile radius is a significant safety and layout advantage, eliminating concerns related to pipeline operator-mandated setbacks and explosion risk analysis.

3. Grid Infrastructure & Interconnection

Point of Interconnection (POI): The data presents a critical conflict: the nearest substation (North Oxford) is 2.7 miles away, yet the data also states "POI Onsite" at a 13.2 kV distribution voltage. An onsite POI is vastly superior. A 2.7-mile dedicated feeder extension would be prohibitively expensive (likely $1.5M - $3M+). Assuming the "POI Onsite" data is correct, this is the site's single greatest asset. This implies a 13.2 kV three-phase distribution line is either on the property boundary or has an existing right-of-way across it.

Interconnection Details:

• Utility: The utility is identified by a UUID (38cc5e9a...). Based on the service territory, this is almost certainly National Grid.
• Voltage: 13.2 kV is an ideal distribution voltage for a project of this scale (≤5MW), allowing for a simpler and less costly interconnection design compared to a transmission-level tap.
• Cost & Timeline: With an onsite POI, direct interconnection costs (utility-side upgrades) could be in the range of $350,000 - $850,000. However, the interconnection process with National Grid in the ISO-New England (ISO-NE) territory is notoriously slow and backlogged. The total timeline from application submission to commercial operation can easily exceed 24-36 months.
• Feeder Configuration: The likely configuration is a tap from an overhead 13.2 kV distribution feeder. A pre-application report is essential to determine the feeder's unique ID, its current load profile, hosting capacity, and whether it is networked or radial.

4. Regulatory & Zoning Analysis

Jurisdiction & Zoning: The Authority Having Jurisdiction (AHJ) is the Town of Oxford. The parcel's zoning is listed as R-1 (Residential) and "Private Preserve, Open Space." This is a critical flaw. BESS is an industrial utility use and is fundamentally incompatible with residential and open space zoning designations.

Permitting Pathway: The project will not be permitted "by-right." It will require a discretionary permit from the Oxford Zoning Board of Appeals (ZBA), most likely a Use Variance, which has a very high legal threshold to meet in Massachusetts. Alternatively, a Special Permit might be possible if the town's bylaws have a provision for public utility uses, but this is still a challenging path. This process involves public hearings and is highly susceptible to local opposition (NIMBYism), which can delay or kill the project.

Regulatory Risk: A review of Oxford's bylaws is needed to see if BESS is even a defined use. If not, the town may be unprepared to review such an application, leading to uncertainty and potential for a development moratorium. Setback requirements will likely be substantial (e.g., 50-1