⚡ DOANE AVE

MEMORANDUM

TO: Sunland America Corp. Development Committee

FROM: Senior BESS Site Evaluation Analyst

DATE: October 26, 2023

SUBJECT: Comprehensive Site Diligence Analysis for APN H6_1_4 (Doane Ave), Agawam, MA

This report provides a comprehensive due diligence analysis for a prospective 6.9-acre BESS development site in Agawam, Hampden County, Massachusetts. The site presents a compelling opportunity due to its exceptional proximity to high-voltage grid infrastructure. However, significant regulatory and environmental uncertainties must be resolved before committing further capital. The following sections detail the site's characteristics, risks, and recommended path forward.

1. Site Access & Topography

Road Access & Equipment Delivery: The property is located on Doane Ave. Initial desktop review suggests Doane Ave is a local, two-lane paved road. While likely sufficient for standard construction vehicles, a detailed assessment is required to confirm its suitability for oversized and overweight loads, such as a main power transformer (MPT) and prefabricated battery enclosures. A route survey will be necessary to identify any low-clearance bridges, tight turning radii, or weight-limited infrastructure between the site and the nearest major highway (likely I-91 or Route 57). The quality of road access is currently a critical unknown.

Terrain & Buildability: Located in the Connecticut River Valley, the topography of Hampden County is generally characterized by gentle rolling hills and flat plains. Satellite imagery suggests the parcel is relatively flat and cleared, which is highly advantageous for minimizing civil engineering costs. However, the provided data lists "Buildable Acres" as unknown. A preliminary site layout is needed to determine how much of the 6.9 acres is usable after accounting for setbacks, access roads, and potential environmental features.

Heavy Equipment & Easements: Assuming the access road is sufficient, the flat terrain should pose no significant challenge for cranes, forklifts, and other heavy equipment needed for installation. A key diligence item is to confirm legal access. A title report must be commissioned to verify that the parcel has direct, unencumbered legal access to Doane Ave and to identify any existing utility or access easements that could constrain the site layout.

2. Environmental Constraints

FEMA Flood Zone & Wetlands: The FEMA flood zone and wetlands status are both listed as "Unknown." These are potentially fatal flaws requiring immediate investigation. A desktop screening using FEMA's Flood Insurance Rate Maps (FIRMs) and the National Wetlands Inventory (NWI) must be conducted. If the site falls within a Special Flood Hazard Area (e.g., Zone AE), development costs will increase substantially due to requirements for elevating equipment, or the site may be rendered undevelopable. Similarly, the presence of jurisdictional wetlands would trigger significant setbacks (often 50-100 feet in MA) and a lengthy, expensive permitting process under the Massachusetts Wetlands Protection Act, reducing the buildable area.

Habitat & Protected Species: The data indicates no critical habitat or protected areas on site, which is a positive initial finding. This should be verified via the US Fish & Wildlife Service's IPaC tool and the Massachusetts Natural Heritage & Endangered Species Program (NHESP) database to ensure no state-listed species or priority habitats are present.

Site Contamination: The absence of Brownfield or Superfund sites within a two-mile radius is a significant advantage from a liability and remediation cost perspective. However, this also means the project will not be eligible for the 10% IRA Brownfield tax credit adder. A Phase I Environmental Site Assessment (ESA) should still be conducted to confirm no historical contamination exists on the parcel itself.

Other Constraints: The site is not in the Chesapeake Bay Critical Area. The lack of pipelines within three miles is a major safety and design benefit, eliminating concerns about pipeline-related setbacks and explosion risks.

3. Grid Infrastructure & Interconnection

Proximity to POI: The site's primary strength is its exceptional proximity to grid infrastructure. It is located just 0.3 miles from the South Agawam Switching Station, a 115 kV facility. Furthermore, a 115 kV transmission line is reported to be only 0.1 miles away. This proximity dramatically reduces the potential cost and complexity of the generator lead line.

Interconnection Strategy: Given the ≤5MW target size, a distribution-level interconnection (e.g., 13.2 kV) might be feasible. However, the immediate proximity to a 115 kV switching station makes a transmission-level interconnection the most probable and robust option. This would provide greater capacity and potentially bypass congested distribution circuits. The "NOT AVAILABLE" flag on the nearby 115kV line is a critical ambiguity that must be clarified with the interconnecting utility, which is almost certainly Eversource in this territory. We must determine if this indicates a lack of capacity or is simply a data artifact.

Cost & Timeline: If a direct tap to the 115kV line or a short run to the substation is feasible, interconnection costs could be on the lower end of the typical range, potentially $1.5M - $4M. This is a significant competitive advantage. However, the interconnection process in New England, governed by ISO-NE, is notoriously slow and complex. Even with a favorable position, the timeline from application submission to commercial operation can easily exceed 36 months.

Utility & Queue: The utility is Eversource and the RTO is ISO-NE. We must immediately engage Eversource's interconnection team with a pre-application to get a preliminary assessment of capacity at the South Agawam station and understand their preferred Point of Interconnection (POI).

4. Regulatory & Zoning Analysis