⚡ LEE RD

MEMORANDUM

TO: Sunland America Corp. Development Committee
FROM: Senior BESS Site Evaluation Analyst
DATE: October 26, 2023
SUBJECT: Comprehensive Site Diligence Analysis for APN 35-10-9 (Lee Rd), Ware, MA

This report provides a comprehensive due diligence analysis for the potential acquisition and development of a Battery Energy Storage System (BESS) on a 5.35-acre parcel located on Lee Road in Ware, Hampshire County, Massachusetts. The analysis evaluates the site's suitability across key development pillars, including physical characteristics, environmental constraints, grid access, regulatory landscape, and financial incentives.

1. Site Access & Topography

Road Access & Equipment Delivery: The provided data does not specify the quality of road access. A desktop review using satellite imagery suggests that Lee Road is a secondary, likely rural road. Its width, surface material (paved vs. gravel), and load-bearing capacity are unknown and represent a significant data gap. Feasibility for delivering heavy equipment, such as 80,000 lb battery containers, a GSU transformer, and large cranes, is questionable without significant road improvements. A site visit and consultation with a civil engineer are required to assess turning radii, bridge/culvert weight limits, and potential laydown area locations.

Terrain & Buildability: Hampshire County is characterized by rolling hills and forested terrain. While the specific topography of the parcel is unknown, we should assume it is not perfectly flat. A detailed topographical survey will be essential to determine grading requirements, which can significantly impact civil costs. The 5.35-acre size is small for a utility-scale project, and after applying zoning and environmental setbacks, the buildable envelope for a ≤5MW system may be constrained.

Easement Concerns: The Point of Interconnection (POI) is 2.0 miles from the parcel. This necessitates a lengthy gen-tie line easement. Acquiring right-of-way across multiple, likely privately-owned, parcels is a major undertaking fraught with financial, legal, and timeline risks. This is a primary and significant challenge for the site.

2. Environmental Constraints

Flood & Wetlands: FEMA Flood Zone and wetlands presence are both marked as "Unknown". These are critical, potentially fatal-flaw risks. A desktop review of FEMA FIRM maps and National Wetlands Inventory (NWI) data is the immediate first step. Any presence of Zone AE floodplains would require elevating all equipment above the Base Flood Elevation, adding substantial cost. The Massachusetts Wetlands Protection Act (WPA) is highly restrictive, and the presence of jurisdictional wetlands would trigger significant buffer requirements (typically 100 feet), further shrinking the buildable area. A formal wetland delineation would be mandatory if initial screening shows potential.

Habitat & Protected Species: The data indicates no critical habitat or protected areas on site, which is a positive initial finding. However, this must be verified through the U.S. Fish and Wildlife Service's IPaC tool and the Massachusetts Natural Heritage & Endangered Species Program (NHESP) database to confirm no state-listed species or sensitive ecological areas are present.

Other Considerations: The lack of pipelines within a 3-mile radius is a significant safety and design benefit, eliminating the need for specialized setbacks or consultations with pipeline operators. The site is not within the Chesapeake Bay Critical Area.

3. Grid Infrastructure & Interconnection

POI Details: The nearest POI is the WARE substation, 2.0 miles away, with a maximum voltage of 115 kV. An associated 115 kV transmission line owned by Western Massachusetts Electric Company (an Eversource company) runs parallel to the substation. This distance is substantial and financially challenging for a project of this scale.

Interconnection Recommendation: A distribution-level interconnection (e.g., 13.8 kV) is not feasible over a 2-mile distance. The only viable path is a transmission-level interconnection at 115 kV. This dramatically increases complexity, cost, and timeline compared to a distribution-connected project.

Cost & Timeline Estimate: The cost for a 2-mile, 115 kV gen-tie line, including engineering, materials, labor, and easement acquisition, is estimated to be in the $2.5M - $5.0M+ range. This cost alone may render a ≤5MW project financially unviable. The interconnection process will be governed by ISO-New England (ISO-NE), not just the local utility. The ISO-NE queue is notoriously slow and complex, with study timelines often exceeding 24-36 months before an Interconnection Agreement is executed. Network upgrade costs identified in the ISO-NE studies could add millions more to the project budget.

Feeder Configuration: As this would be a transmission-level connection, distribution feeder configuration is not applicable. The lack of proximate 3-phase distribution lines further confirms that a transmission tap is the only, albeit challenging, option.

4. Regulatory & Zoning Analysis

Jurisdiction & Zoning: The Authority Having Jurisdiction (AHJ) is the Town of Ware, MA. The parcel is zoned RR (Residential-Vacant Land). This is a major impediment. BESS is an industrial/utility use and is fundamentally incompatible with residential zoning.

Permitting Pathway: Development is not possible "by-right". The project would require, at a minimum, a Special Permit from the Planning Board or Zoning Board of Appeals. More likely, it would require a Use Variance, which has a much higher legal threshold to meet (proving a unique hardship of the land). Both pathways are discretionary, subject to public hearings, and carry a high risk of denial due to community opposition, especially in a residential district. The town may not have specific BESS ordinances, leading to regulatory uncertainty.

Moratorium Risk: Given the residential zoning and the increasing prevalence of BESS projects in Massachusetts, there is a high risk that a project proposal could trigger community backlash, leading the Town of Ware to enact a temporary moratorium on BESS development to study the issue. This would indefinitely delay the project.

5. IRA/ITC Incentive Analysis

The site's eligibility for Investment Tax Credit (ITC) adders under the Inflation Reduction Act (IRA) is extremely poor.

• Opportunity Zone: No. (0% adder)
• Energy Community: No. (0% adder)
• Low-Income