⚡ 1945 MOUNT ZION 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 1201006959 (1945 Mount Zion Rd, Garrett County, MD)

This report provides a comprehensive due diligence analysis for the potential acquisition and development of a Battery Energy Storage System (BESS) project on a 49.46-acre parcel in unincorporated Garrett County, Maryland. The analysis concludes that while the site possesses exceptional grid infrastructure proximity, significant regulatory and buildability challenges present considerable risks that must be mitigated before committing significant development capital.

1. Site Access & Topography

Road Access: The property has direct frontage on Mount Zion Road, a two-lane, paved county road. Based on aerial and street-level imagery, the road appears to be in fair condition and suitable for standard construction traffic. However, a formal road survey should be conducted to confirm weight limits and turning radii for oversized and overweight vehicles.

Terrain & Buildability: Located in the Appalachian region of Western Maryland, the site's topography is a primary concern. The parcel is heavily wooded and situated on a noticeable slope. Significant grading and civil work will be required to create a level pad of 2-3 acres needed for a 5MW BESS project. This will increase construction costs and timelines compared to a flat, cleared site. The 49-acre size provides flexibility in siting the project to minimize earthwork, but a detailed geotechnical and topographical survey is essential.

Equipment Delivery: Access for heavy equipment, including a 150,000 lb main power transformer and 40-foot battery containers on lowboy trailers, appears feasible via Mount Zion Road. An existing unpaved access point onto the property is visible, but it will require significant upgrades to an all-weather construction entrance capable of handling heavy loads.

Easements: Requires Verification. A title search is required to identify any existing access, utility, or conservation easements that could encumber the property. Given the proximity of the transmission line, a utility easement almost certainly exists on or adjacent to the parcel, which could restrict the buildable area.

2. Environmental Constraints

FEMA Flood Zone: Requires Verification. The FEMA flood zone designation is unknown and represents a critical data gap. A desktop analysis using FEMA's Map Service Center must be conducted immediately. If any portion of the planned project area falls within a 100-year floodplain (Zone A/AE), it could necessitate costly mitigation (e.g., raising all equipment pads above the Base Flood Elevation) or render the site unsuitable.

Wetlands: Requires Verification. The presence of wetlands is unknown. Given the site's wooded and sloped nature, ephemeral streams and hydric soils are possible. A National Wetlands Inventory (NWI) desktop screening is the first step, to be followed by a formal wetland delineation by a certified consultant. Any identified wetlands will require significant setbacks (typically 50-100 feet), further constraining the buildable area.

Habitat & Species: The data indicates no critical habitat or protected areas on site, which is a significant positive. This reduces the risk of encountering federally protected species. However, a review of Maryland's Department of Natural Resources database is recommended to screen for state-listed species of concern.

Contamination Status: The site has no known brownfield or superfund sites within a two-mile radius. While this eliminates the potential for the 10% IRA brownfield tax credit adder, it provides a clean environmental baseline and significantly lowers liability risk.

Other Considerations: The property is confirmed to be outside the Chesapeake Bay Critical Area, which is a major regulatory advantage, avoiding an additional layer of stringent state-level environmental and land-use review. The absence of pipelines within three miles is a key safety and permitting benefit.

3. Grid Infrastructure & Interconnection

Substation & Transmission: The site's primary asset is its exceptional proximity to grid infrastructure. A 138 kV substation ("UNKNOWN122608") and an associated 138 kV transmission line owned by The Potomac Edison Company (a FirstEnergy subsidiary) are located just 0.2 miles from the parcel boundary. This short distance is ideal for minimizing the cost and complexity of the generator lead line.

Interconnection Point: For a distribution-scale project (≤5MW), a 138 kV transmission-level interconnection would be cost-prohibitive. The logical strategy is to interconnect to a distribution feeder emanating from the substation. The substation almost certainly steps the 138 kV down to a standard distribution voltage (e.g., 12.47 kV or 34.5 kV). The immediate next step is to identify the specific feeder circuit and its available hosting capacity.

Cost & Timeline Estimate: The short