⚡ 111 MOSHER ST

MEMORANDUM

TO: Sunland America Corp. Investment Committee
FROM: Senior BESS Site Evaluation Analyst
DATE: October 26, 2023
SUBJECT: Comprehensive Site Diligence Analysis for 111 Mosher St, Holyoke, MA (APN: 050-01-004)

This report provides a comprehensive due diligence analysis for a potential distribution-scale Battery Energy Storage System (BESS) project at 111 Mosher Street in Holyoke, Massachusetts. The 7.81-acre parcel presents a compelling opportunity due to its exceptional grid proximity and favorable zoning, but this is counterbalanced by significant environmental uncertainties and a lack of baseline IRA incentives.

1. Site Access & Topography

Road Access & Feasibility: The site is located on Mosher Street, which appears to be a paved, two-lane industrial road. Based on satellite imagery review, the road seems adequate for standard construction traffic, including semi-trucks for delivering battery containers, inverters, and switchgear. Access to major thoroughfares like I-391 and I-91 is straightforward, facilitating logistics.

Terrain Characteristics: The property is situated in a flat, heavily industrialized area adjacent to the Connecticut River canal system. The topography appears to be level with minimal grade, which is ideal for BESS construction as it will significantly reduce earthwork and site preparation costs. No obvious topographical challenges like steep slopes or significant rock outcroppings are visible from preliminary analysis.

Heavy Equipment Access: Given the industrial zoning and existing road infrastructure, access for heavy equipment such as a large crane (for setting transformers and control houses) and flatbed trucks is anticipated to be excellent. The primary constraint would be any unrecorded access limitations or tight turning radii at the site entrance, which must be confirmed with a site visit.

Easement Concerns: Requires Verification. A full title report is required to identify any existing access, utility, or drainage easements that could encumber the property and reduce the buildable area. The current POI access is listed as unknown and must be investigated to ensure uninhibited access for the utility interconnection line is possible from the street to the project substation.

2. Environmental Constraints

FEMA Flood Zone: Requires Verification. The FEMA flood zone designation is currently unknown. Given the site's low elevation and proximity to the Connecticut River and associated canals, there is a moderate to high risk that the property lies within a designated Special Flood Hazard Area (e.g., Zone AE). Development within a flood zone would require elevating all critical equipment above the Base Flood Elevation (BFE), adding significant cost and complexity. This is a critical-path diligence item.

Wetlands: Requires Verification. The presence of wetlands is unknown. A desktop screening using the National Wetlands Inventory (NWI) is an immediate next step. The flat terrain and proximity to water bodies increase the likelihood of jurisdictional wetlands, which would trigger state and local setback requirements (typically 50-100 feet) and reduce the buildable acreage.

Critical Habitat / Endangered Species: The data indicates no critical habitat or protected areas on site, which is a significant positive. This should be confirmed via the USFWS IPaC tool, but risk in this category appears low for this heavily disturbed industrial parcel.

Brownfield/Superfund Status: This is a major point of concern and potential opportunity. The presence of 28 brownfield or superfund sites within a two-mile radius indicates a high potential for historical industrial contamination on or adjacent to the subject parcel. A Phase I Environmental Site Assessment (ESA) is non-negotiable. Risk: Discovery of contamination could lead to costly remediation and project delays. Opportunity: If the site itself meets the federal definition of a brownfield, the project could qualify for the 10% Brownfield ITC adder, which would be a major economic benefit.

Pipeline Proximity: The absence of major gas pipelines within three miles is a positive, eliminating risks associated with pipeline-related setbacks, safety protocols, and potential easement conflicts.

3. Grid Infrastructure & Interconnection

Nearest Substation: The site's proximity to Substation "UNKNOWN140783" (0.3 miles) is its single greatest asset. This substation has a maximum voltage of 115 kV, indicating it is a transmission-level facility that almost certainly steps down to distribution voltages. The short distance will dramatically reduce the cost of the generator lead line.

Transmission Line Proximity: A 115 kV transmission line is also 0.3 miles away, but the data notes it is "NOT AVAILABLE." This suggests that direct transmission interconnection is not a viable path, which is expected for a ≤5MW project.

Recommended Interconnection Voltage: For a project of this scale (≤5MW), the most economically viable path is a distribution-level interconnection, likely at 13.8 kV. We would seek to interconnect to a distribution feeder originating from the nearby substation. Requires Verification: The interconnecting utility must be confirmed; it is likely Holyoke Gas & Electric (a municipal utility) or Eversource. The specific feeder voltage and available capacity must be determined through a pre-application report.

Cost & Timeline Estimate: The short 0.3-mile distance to the substation is highly favorable. Assuming a straightforward overhead line extension and no major system upgrades, interconnection costs could be in the $750,000 to $2,000,000 range. However, if the feeder or substation requires significant upgrades (e.g., new breaker, re-conductoring), costs could be substantially higher. In ISO-NE territory,