⚡ 268 DRESSER HILL RD

MEMORANDUM

TO: Sunland America Corp. Development Team

FROM: Senior BESS Site Evaluation Analyst

DATE: October 26, 2023

SUBJECT: Comprehensive Site Diligence Analysis for 268 Dresser Hill Rd, Southbridge, MA (APN: 041_004_00001)

This report provides a comprehensive due diligence analysis for the potential acquisition and development of a Battery Energy Storage System (BESS) project at the 12.42-acre parcel located at 268 Dresser Hill Road in Southbridge, Worcester County, Massachusetts. The analysis covers key evaluation criteria including site access, environmental constraints, grid infrastructure, regulatory hurdles, and incentive eligibility. The final recommendation is based on a weighted scoring of these factors.

1. Site Access & Topography

Road Access: The site has frontage on Dresser Hill Road, a two-lane, paved local road. A preliminary review via satellite imagery suggests the road is in fair condition but may be narrow in sections, with limited shoulder space. A detailed route survey is required to confirm its suitability for heavy haul trucks.

Equipment Delivery: The primary concern for equipment delivery is navigating local roads from a major highway (like I-84 or the Mass Pike) to the site. The delivery of 40-foot BESS containers, switchgear, and a main power transformer via a low-boy trailer will require careful planning. A turning radius analysis at the intersection of Dresser Hill Road and nearby arterial roads, as well as at the proposed site entrance, is a critical next step. The current curb cut, if any, is likely insufficient and a new, wider commercial-grade entrance will need to be constructed.

Topography & Buildability: Worcester County is known for its rolling hills. Satellite imagery indicates moderate topographical variation across the parcel. Significant grading and civil work will likely be required to create a level pad of 1-2 acres needed for a 5MW/10MWh BESS project. This will increase site preparation costs. The 12.42-acre total size is ample, but the actual buildable area after accounting for slopes, setbacks, and any environmental features is unknown and must be determined via a formal survey.

Easements: The parcel appears to have direct road frontage, mitigating the need for an access easement. However, a title search is required to confirm no existing easements (e.g., utility, conservation) encumber the property in a way that would restrict development.

2. Environmental Constraints

FEMA Flood Zone: The FEMA flood zone designation is currently 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 planned equipment pad falls within a 100-year floodplain (Zone A or AE), it would necessitate raising all equipment above the Base Flood Elevation, adding substantial cost and complexity, or could render the site unusable.

Wetlands: The presence of wetlands is Unknown. Massachusetts has stringent wetland protection laws (Massachusetts Wetlands Protection Act), typically enforcing a 100-foot buffer zone from delineated wetland boundaries. Given the site's undeveloped nature and regional geography, the presence of wetlands is highly probable. A desktop screening using MassGIS data is the immediate first step, to be followed by a formal field wetland delineation by a certified professional if the screening indicates potential wetlands.

Habitat & Species: The data indicates no critical habitat or protected areas on site, which is a significant positive. As a standard diligence measure, a check against the MA Natural Heritage & Endangered Species Program (NHESP) database is recommended to confirm no state-listed species habitats are present.

Brownfield/Superfund Status: There are two known contamination sites within a two-mile radius, but the subject parcel itself is not a listed brownfield. This presents both a risk and a potential opportunity. The risk is that migrating contamination from nearby sites could impact the property, which must be assessed via a Phase I Environmental Site Assessment (ESA). The opportunity is that if the Phase I ESA identifies Recognized Environmental Conditions (RECs) and a subsequent Phase II ESA confirms contamination, the site could qualify as a "brownfield" for the purposes of the Inflation Reduction Act (IRA), unlocking a valuable 10% ITC adder. This is the site's only apparent path to an ITC bonus.

Pipeline Proximity: No gas transmission pipelines are located within three miles. This is a major safety and layout advantage, eliminating concerns related to pipeline setbacks and explosion risk.

3. Grid Infrastructure & Interconnection

Substation & POI: The nearest identified substation is 1.6 miles away and has a maximum voltage of 115 kV. An associated 115 kV transmission line is also at this distance. For a distribution-scale project (≤5MW), this distance is a major financial red flag.

Interconnection Recommendation: A 5MW BESS would typically interconnect to a 13.8 kV (or similar) distribution feeder. A 1.6-mile line extension at distribution voltage would be exceptionally expensive and likely face significant voltage drop and power quality issues. Therefore, the most technically feasible Point of Interconnection (POI) is likely the 115 kV transmission line. However, a transmission-level interconnect is significantly more complex, costly, and has a longer timeline than a distribution interconnect.

Cost & Timeline Estimate: A 1.6-mile line build (either distribution or transmission) will likely cost between $1.5M - $