⚡ 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 (≤5MW) Battery Energy Storage System (BESS) at the subject property. The analysis identifies significant regulatory and financial challenges that present a high-risk profile for this site.

1. Site Access & Topography

Road Access: The property has frontage on Millbury Road, a public, two-lane paved road. A preliminary review via satellite imagery indicates the road is in fair condition and appears suitable for standard construction traffic. However, a site visit is required to confirm the absence of any low-clearance bridges, sharp turns, or weight-limited infrastructure between the site and major state highways (e.g., I-395, I-290) that could impede the delivery of oversized/overweight equipment.

Terrain & Equipment Feasibility: The 12.58-acre parcel is currently undeveloped, heavily wooded, and appears to have some moderate topographical variation. Significant clearing, grading, and civil work will be required to create a level pad for the BESS equipment, switchgear, and transformer. The cost of this site work could be substantial. A new gravel or paved access road will need to be constructed from Millbury Road onto the site. Assuming direct frontage is confirmed, this is feasible, but the costs must be factored into the project pro forma. Access for heavy equipment, including a 100-ton crane for transformer placement and low-boy trailers for battery containers, appears possible from Millbury Road, but will be entirely dependent on the new access road's design and construction.

Easement Concerns: While the parcel appears to have direct road frontage, a title search and ALTA survey are required to confirm this and to identify any existing utility or access easements that could encumber the property and restrict the developable area. No immediate third-party access easement concerns are apparent.

2. Environmental Constraints

FEMA Flood Zone: The flood zone designation is currently Unknown. This is a critical data gap. Any designation within a 100-year floodplain (e.g., Zone A, Zone AE) would be a major impediment, potentially rendering the site undevelopable or requiring costly mitigation measures such as elevating all equipment on platforms, which is often financially unviable for a distribution-scale project. Immediate review of FEMA Flood Insurance Rate Maps is a top priority.

Wetlands: The presence of wetlands is Unknown. Given the site is undeveloped forest land in Massachusetts, there is a high probability of state-jurisdictional wetlands, vernal pools, or intermittent streams being present. The Massachusetts Wetlands Protection Act (WPA) imposes stringent regulations, including 100-foot buffer zones ("Riverfront Area") where development is heavily restricted. The presence of significant wetlands could severely reduce the Buildable Acres to a point where the project is no longer feasible. A formal wetland delineation by a certified professional is a mandatory and immediate next step.

Habitat & Species: The data indicates no federally designated Critical Habitat or Protected Areas on site, which is a positive. However, a desktop review using MassGIS and consultation with the MA Natural Heritage & Endangered Species Program (NHESP) is necessary to screen for state-listed rare species or Priority Habitats, which could trigger additional review and mitigation requirements.

Site Contamination: The site has no known Brownfield or Superfund history. While this is positive from a liability and cleanup cost perspective, it means the project is ineligible for the 10% IRA Brownfield tax credit adder, which is a significant financial disadvantage.

Other Constraints: The site is not within the Chesapeake Bay Critical Area. No pipelines or gas wells are in the immediate vicinity, which is a positive from a safety and setback perspective.

3. Grid Infrastructure & Interconnection

Interconnection Point (POI): There is a critical discrepancy in the provided data. The nearest substation (North Oxford) is 2