⚡ 30744 PERRY RD

MEMORANDUM

TO: Sunland America Corp. Development Committee

FROM: Senior BESS Site Evaluation Analyst

DATE: October 26, 2023

SUBJECT: Comprehensive Site Diligence Analysis for "Project Kings Creek"

PROPERTY: 30744 PERRY RD, Somerset County, MD (APN: 2015000562)

FINAL RECOMMENDATION: MAYBE

This report provides a comprehensive diligence analysis for the proposed BESS project located at 30744 Perry Rd in an unincorporated area of Somerset County, Maryland. The site presents a compelling, high-risk/high-reward opportunity. Its primary strength is its extraordinary proximity to the Kings Creek 138 kV substation, which drastically reduces line extension costs. However, this is offset by significant challenges, including unfavorable zoning, a potentially cost-prohibitive interconnection voltage for a distribution-scale project, and a complete lack of IRA/ITC incentive adders. The following analysis details these factors and recommends a clear path for de-risking before further capital is committed.

1. Site Access & Topography

• Road Access & Feasibility: The property is served by a private road off Perry Road. This is a potential concern. While physical access exists, the legal right to use this road for heavy commercial and construction traffic must be confirmed. Perry Road itself is a local two-lane road, typical for the area, and should be sufficient for standard truck traffic. Actionable Insight: A title search is immediately required to identify any existing access easements. The easement must be reviewed for width, weight, and use-type restrictions. If no suitable easement exists, one must be negotiated with the landowner.
• Terrain & Equipment Access: The "Great" buildability rating and the presence of 2.12 buildable acres on a 6.78-acre parcel strongly suggest the terrain is flat and suitable for development with minimal grading. This topography is ideal for siting BESS containers, transformers, and switchgear. The site appears large enough to accommodate construction laydown areas and crane access for setting heavy equipment like the main power transformer.
• Easement Concerns: The private road is the primary access concern. We must verify that a permanent, insurable access easement is in place that will not be challenged by other potential users of the road. Without this, the project is not viable.

2. Environmental Constraints

• FEMA Flood Zone: The flood zone status is currently Unknown. This is a critical data gap and a potential fatal flaw. Siting critical infrastructure in a Special Flood Hazard Area (SFHA) would, at a minimum, dramatically increase civil engineering costs (e.g., building up pads) and could be prohibited by the AHJ. Actionable Insight: An immediate desktop review of FEMA's Flood Insurance Rate Maps (FIRMs) is required.
• Wetlands: The presence of wetlands is Unknown. Given the site's proximity to the Chesapeake Bay watershed, the risk of jurisdictional wetlands is moderate to high. The presence of wetlands and their associated buffers (typically 50-100 feet) could significantly constrain the 2.12-acre buildable area. Actionable Insight: A desktop screening using the National Wetlands Inventory (NWI) is the first step, to be followed by a formal wetland delineation by a certified consultant if the screening indicates a high probability of wetlands.
• Habitat & Protected Species: The data indicates no critical habitat or protected areas on site, which is a significant advantage, reducing the risk of federal Endangered Species Act (ESA) complications. A review for state-listed species is still advisable but is a lower-level risk.
• Brownfield/Superfund Status: The site is not a brownfield. This is a neutral finding; it avoids environmental liability but also means the project is ineligible for the 10% IRA brownfield tax credit adder.
• Chesapeake Bay Critical Area: The property is confirmed to be outside the Chesapeake Bay Critical Area. This is a major regulatory advantage in Maryland, as it removes a significant layer of stringent development and stormwater management regulations, simplifying the permitting process.
• Pipeline Proximity: No pipelines are located within three miles, eliminating