⚡ 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 a potential distribution-scale Battery Energy Storage System (BESS) project at 40 Millbury Road in Oxford, Worcester County, Massachusetts. The analysis covers key development pillars including site characteristics, environmental constraints, grid interconnection, regulatory hurdles, and financial incentives.

1. Site Access & Topography

Road Access: The property has frontage on Millbury Road, which is a public, two-lane local road. Initial desktop review suggests the road is paved and appears to be in reasonable condition. It connects to Sutton Ave (Route 146) approximately 1.5 miles to the west, providing a direct link to major state highways for equipment delivery.

Terrain & Equipment Feasibility: Based on topographical maps of the area, Worcester County is characterized by rolling hills. The parcel itself appears to be largely forested with some moderate elevation changes. A detailed topographical survey is required to confirm site grades. While the public road access is good, an internal access road will need to be constructed from Millbury Road to the project area. The key challenge will be navigating local turns and potential grade changes with oversized loads. However, access for standard tractor-trailers carrying battery containers (40-53 ft) and a specialized multi-axle vehicle for the main power transformer appears feasible, pending a formal route survey. The current entrance appears to be an unpaved driveway, which would require significant upgrades, including widening and reinforcement to support heavy construction traffic.

Easement Concerns: A new access easement will need to be secured from the property line to the BESS facility footprint for construction and ongoing operations. The data point "POI Onsite" suggests a utility distribution line may already cross the property, which would imply an existing utility easement. The location of this easement must be verified, as it could impact the site layout and available buildable area.

2. Environmental Constraints

FEMA Flood Zone: The FEMA flood zone designation is listed as "Unknown." This is a critical data gap. A review of FEMA's Flood Insurance Rate Maps (FIRMs) is an immediate next step. If the proposed equipment pad is within a Special Flood Hazard Area (e.g., Zone A or AE), development will be significantly more complex and costly, requiring elevated foundations and potentially being unpermittable. We must assume this is a risk until proven otherwise.

Wetlands: The presence of wetlands is "Unknown." Given the forested nature of the site in Massachusetts, there is a high probability of state or federally jurisdictional wetlands, streams, or vernal pools. Massachusetts has a stringent Wetlands Protection Act with significant buffer zone requirements (typically 100 feet). A desktop screening using the National Wetlands Inventory (NWI) is a first step, but a formal wetland delineation by a certified professional will be required to confirm boundaries and determine the net buildable area. Any impact on wetlands would trigger a lengthy and complex permitting process with the Oxford Conservation Commission.

Habitat & Species: The data indicates no critical habitat or protected areas on site. This is a positive preliminary finding. However, this must be verified through the US Fish & Wildlife Service's IPaC tool and the Massachusetts Natural Heritage & Endangered Species Program (NHESP) database to screen for state-listed rare or endangered species. Forest clearing could trigger time-of-year restrictions to protect certain species (e.g., northern long-eared bat).

Contamination Status: The site is not a known brownfield or near a superfund site. While this reduces environmental liability risk, it also means the project is ineligible for the 10% IRA Brownfield tax credit adder, which is a notable financial disadvantage.

Pipeline Proximity: The absence of major gas pipelines within three miles is a significant safety and design advantage, eliminating the need for specialized risk assessments and setbacks related to pipeline right-of-ways.

3. Grid Infrastructure & Interconnection

Grid Proximity: There is a critical discrepancy in the provided data. The nearest substation (North Oxford) is 2.7 miles away, yet the Point of Interconnection (POI) is listed as "Onsite" at 13.2 kV.

• Scenario A (POI Onsite): This is the best-case scenario. It implies a 13.2 kV three-phase distribution feeder, likely operated by National Grid (the incumbent utility in Oxford), crosses the property. If this feeder has sufficient capacity, interconnection costs would be relatively low, estimated in the $500k - $1.2M range for a tap, recloser, metering, and protection upgrades.
• Scenario B (POI at Substation): If the "POI Onsite" data is incorrect and we must connect at the North Oxford substation, a 2.7-mile dedicated feeder would be required. The cost for this would be prohibitive for a ≤5MW project, likely in the $3.5M - $6M+ range, with a timeline of 24-36 months. This scenario would render the project financially unviable.

Interconnection Process: Interconnection would be with National Grid under their distribution interconnection tariff (ESR-B.25), governed by the Massachusetts DPU. The application would enter the ISO-New England (ISO-NE) queue for market participation. Queue times in Massachusetts are notoriously long, and the study process can take 18-24 months before an Interconnection Service Agreement (ISA) is issued. The 345 kV transmission line is not a viable POI for a distribution-scale project due to extreme cost and complexity.

4. Regulatory & Zoning Analysis

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

Zoning Compatibility: This is the project's most significant challenge. The parcel is zoned R-1 (Residential) and designated as "Private Preserve, Open Space-Vacant Land." Battery storage is an industrial/utility use and is not a permitted use in a residential or open space zone under any typical zoning bylaw. Development is not possible "by-right."

Permitting Pathway: The only viable, albeit difficult, pathway would be to obtain a Use Variance from the Oxford Zoning Board of Appeals (ZBA). A variance requires proving a specific legal hardship tied to the land itself, which is a very high bar to clear and is often subject to legal challenges from abutters. A Special Permit might be a theoretical option if the Oxford bylaw has a provision for "public utility" uses in an R