⚡ 561 S LEIPZIG AVE

MEMORANDUM

TO: Sunland America Corp. Development Committee

FROM: Senior BESS Site Evaluation Analyst

DATE: October 26, 2023

SUBJECT: Comprehensive Site Diligence Analysis for Project "Galloway Grid" (561 S Leipzig Ave, Galloway, NJ)

This report provides a comprehensive due diligence analysis for the property located at 561 S Leipzig Ave, Galloway, NJ (APN: 0111_284_11) for the potential development of a distribution-scale Battery Energy Storage System (BESS) of up to 5 MW. The analysis covers key evaluation criteria including site access, environmental constraints, grid infrastructure, regulatory landscape, and financial incentives.

1. Site Access & Topography

Road Access: The site has direct frontage on South Leipzig Avenue, a paved, two-lane county road (CR 634). Based on satellite imagery review, the road appears to be in good condition and sufficiently wide to accommodate heavy truck traffic, including flatbeds for battery containers and specialized transport for the main power transformer.

Topography & Equipment Feasibility: The property is located on the Atlantic Coastal Plain and exhibits minimal topographic relief, appearing almost completely flat. This is highly advantageous, as it will significantly reduce earthwork and civil engineering costs associated with site grading. The flat terrain and direct road access present no obvious barriers to the delivery and installation of heavy equipment, including concrete pads, battery enclosures, inverters, and switchgear.

Easement Concerns: With direct frontage, a dedicated access easement is likely not required. However, a formal title search and survey must be conducted to confirm that no existing access easements encumber the property and to verify the legal right of access from S Leipzig Ave. The distribution line along the road may also have a utility easement that could impact the site entrance design.

2. Environmental Constraints

FEMA Flood Zone: The provided data lists the flood zone as "Unknown." A preliminary check using the FEMA Flood Map Service Center indicates the parcel is located within Zone X, an area of minimal flood hazard. While this is a positive initial finding, it Requires Verification through a formal floodplain determination during due diligence. Siting critical infrastructure outside of the 0.2% and 1% annual chance floodplains is a critical de-risking step.

Wetlands: The wetlands status is "Unknown," which represents a significant project risk, particularly in coastal New Jersey. A preliminary review of the U.S. Fish and Wildlife Service's National Wetlands Inventory (NWI) mapper suggests the potential presence of freshwater forested/shrub wetlands along the western and southern portions of the 12.89-acre parcel. Any state-delineated wetlands would require substantial development setbacks (e.g., 50-150 foot buffers per NJDEP regulations), which could severely constrain or eliminate the 10.8-acre buildable area. A formal wetlands delineation is an immediate and critical next step.

Habitat & Species: The data indicates no critical habitat or protected areas on site, which is favorable. A desktop screening for state-listed threatened or endangered species should still be performed to avoid any unforeseen issues with the NJDEP's Natural Heritage Program.

Site Contamination: The site is not listed as a brownfield or superfund site. While this precludes eligibility for the 10% IRA brownfield tax credit adder, it also signifies a low risk of encountering soil or groundwater contamination, avoiding potentially costly and time-consuming remediation efforts.

Pipeline Proximity: No gas pipelines are located within a 3-mile radius, eliminating risks associated with pipeline-related setbacks, safety protocols, and potential co-location conflicts.

3. Grid Infrastructure & Interconnection

Substation & POI: The GALLOWAY substation is located only 0.877 miles from the property. This proximity is excellent and is a primary driver of the site's potential value, as it should minimize the cost and complexity of the interconnection line (gen-tie). The "0 kV" voltage listed in the data is an error; this is almost certainly a distribution substation. Requires Verification, but it likely operates with distribution feeders at 12.47 kV or 13.2 kV, fed by a sub-transmission voltage of 34.5 kV or 69 kV. The likely Point of Interconnection (POI) would be a tap of the 3-phase overhead distribution feeder running along S Leipzig Ave.

Interconnection Strategy: Given the project scale (≤5MW) and lack of transmission lines, a distribution-level interconnection at 12.47 kV or 13.2 kV is the only viable path. This is preferable as it is typically faster and less expensive than a transmission-level connection.

Cost & Timeline Estimate: For a sub-one-mile, overhead distribution tie-in, interconnection costs could range from $750,000 to $2,000,000. This is a preliminary estimate and is highly dependent on the results of the utility's system impact study, which will determine the need for feeder upgrades, re-conductoring, or protection system modifications at the substation. The interconnecting utility is presumed to be Atlantic City Electric (ACE), an Exel