⚡ 23815 LOUISE LN

MEMORANDUM

TO: Sunland America Corp. Development Committee

FROM: Senior BESS Site Evaluation Analyst

DATE: October 26, 2023

SUBJECT: Comprehensive Site Diligence Analysis for APN 1906067085 (Louise Lane)

This report provides a comprehensive due diligence analysis for a potential distribution-scale Battery Energy Storage System (BESS) project on a 15.9-acre parcel located at 23815 Louise Lane in an unincorporated area of St. Mary's County, Maryland. The analysis covers key development pillars including site characteristics, environmental constraints, grid infrastructure, regulatory hurdles, and financial incentives.

1. Site Access & Topography

Road Access & Feasibility: Primary access to the vicinity is via MD-235 (Three Notch Road), a major state highway suitable for heavy transport. However, the final approach is via Louise Lane, which appears to be a secondary, potentially unpaved or gravel road. A physical site visit is mandatory to assess the lane's width, surface condition, turning radii, and any weight-limited culverts or bridges. Significant upgrades to Louise Lane may be required to accommodate low-boy trailers carrying battery containers, power conversion systems (PCS), and the main power transformer. The cost of these road improvements must be factored into the project budget.

Terrain & Buildability: Located on Maryland's coastal plain, the site is presumed to have generally flat to gently rolling topography, which is ideal for BESS construction as it minimizes civil engineering and grading costs. The provided 15.0 buildable acres out of a 15.9-acre parcel represents an excellent 94% utilization rate, suggesting minimal topographical or other physical encumbrances on the parcel itself. This requires verification with a formal topographic survey.

Easement Concerns: Two primary easement risks exist. First, if Louise Lane is a private road, a formal, permanent access easement must be secured from its owner(s). Second, and more significantly, a 1.265-mile gen-tie line will be required to connect the project to the Wildewood substation. This will necessitate securing collection line easements from multiple intervening landowners, which can be a time-consuming and costly process with a high risk of negotiation failure.

2. Environmental Constraints

Flood & Wetlands: The FEMA flood zone and presence of wetlands are currently marked as Requires Verification. These are critical, potentially fatal-flaw risks. A desktop screening using FEMA's Map Service Center and the National Wetlands Inventory (NWI) must be conducted immediately. Any presence of a Special Flood Hazard Area (SFHA) or jurisdictional wetlands would impose significant design constraints, require costly mitigation (e.g., elevating all equipment), and introduce substantial permitting delays through the Maryland Department of the Environment (MDE) and the Army Corps of Engineers.

Habitat & Protected Species: The data indicates no critical habitat or protected areas on site, which is a positive initial finding. This should be confirmed with a query of the U.S. Fish and Wildlife Service's IPaC (Information for Planning and Consultation) tool to screen for any federally listed threatened or endangered species whose habitats may be in the project's vicinity.

Site Contamination: The absence of nearby brownfield or superfund sites is a double-edged sword. While it de-risks the project from a liability and remediation standpoint, it also makes the project ineligible for the 10% Brownfield Adder under the Inflation Reduction Act (IRA), negatively impacting project economics.

Chesapeake Bay Critical Area: The site is confirmed to be outside the Chesapeake Bay Critical Area. This is a significant regulatory advantage, as it avoids a complex and restrictive layer of state-level environmental permitting and land use limitations.

3. Grid Infrastructure & Interconnection

Substation & Interconnection Point: The nearest substation is WILDEWOOD, located 1.265 miles from the parcel. The provided data lists its maximum voltage as "0 kV," which is a major red flag and likely a data error. This Requires Immediate Verification with the local utility, presumed to be Southern Maryland Electric Cooperative (SMECO). Assuming it is a standard distribution substation, its voltage is likely