⚡ 63 SLADE LN

MEMORANDUM

TO: Sunland America Corp. Development Committee
FROM: Senior BESS Site Evaluation Analyst
DATE: October 26, 2023
SUBJECT: Comprehensive Site Diligence Analysis for 63 Slade Ln, Hopewell Township, NJ (APN: 0607_78_2_QFARM)

This report provides a comprehensive due diligence analysis for the subject property in Cumberland County, New Jersey, for its potential as a distribution-scale Battery Energy Storage System (BESS) project. The analysis covers key development pillars including site characteristics, environmental constraints, grid infrastructure, regulatory hurdles, and financial incentives.

1. Site Access & Topography

The property is located at 63 Slade Lane, a local road in a rural, agricultural area. The quality of this road is a critical unknown and requires immediate verification.

• Road Access & Equipment Delivery: Requires Verification. A desktop review suggests Slade Lane may be a narrow, unpaved, or poorly maintained road. A site visit is mandatory to confirm if it can support heavy-haul trucks required for delivering multi-ton transformers and containerized BESS units. We must assess turning radii from public thoroughfares, bridge weight limits, and overhead line clearances.
• Terrain Characteristics: Based on the agricultural land use in this region of Southern New Jersey, the topography is likely flat to gently rolling, which is highly favorable for BESS construction as it minimizes civil engineering and grading costs. The provided 49.29 buildable acres out of 52.35 total acres supports this assumption, suggesting minimal topographical or other physical encumbrances.
• Heavy Equipment Feasibility: Feasibility is entirely dependent on the quality of Slade Lane. If the road is insufficient, the cost of road improvements could be substantial ($250k - $1M+), potentially rendering the project uneconomical.
• Easement Concerns: We must confirm via a title search that the parcel has direct, legal access to a public right-of-way. If access to the ideal buildable area is across a neighboring parcel or requires traversing the frontage of our own parcel, a dedicated access easement will need to be secured.

2. Environmental Constraints

The environmental profile presents significant unknowns that represent potential fatal flaws. The absence of known major issues like pipelines or superfund sites is positive, but the data gaps are critical.

• FEMA Flood Zone: Status is Unknown. This is a primary risk. An immediate FEMA FIRMette map review is required. If the site is within a Special Flood Hazard Area (e.g., Zone A, AE), development will be severely restricted or require costly mitigation, such as elevating all equipment pads above the Base Flood Elevation, which can add hundreds of thousands of dollars in civil costs. A designation of Zone X would be ideal.
• Wetlands: Status is Unknown. This is the second potential fatal flaw. New Jersey (via the NJDEP) has some of the most stringent wetlands regulations in the country. A desktop screening using the National Wetlands Inventory (NWI) is the first step, but a formal wetland delineation by a certified consultant will be required. The presence of regulated wetlands could trigger substantial buffers (50-150 feet), dramatically reducing the 49.29 buildable acres.
• Critical Habitat / Endangered Species: The data indicates no critical habitat, which is a significant advantage. We recommend a confirmatory check using the USFWS IPaC tool to screen for any threatened or endangered species (e.g., bog turtle, northern long-eared bat) whose presence could trigger seasonal construction restrictions or habitat mitigation requirements.
• Brownfield/Superfund Status: The site is not a brownfield. While this avoids potential cleanup liability and complex remediation, it also means the project is ineligible for the 10% ITC "Brownfield" adder under the Inflation Reduction Act (IRA), which is a notable financial disadvantage.

3. Grid Infrastructure & Interconnection

The site's primary strength is its proximity to viable grid infrastructure. This is a major driver for its consideration.

• Nearest Substation: The FAIRTON substation is located just under one mile (0.985 miles) from the parcel boundary. This is an excellent distance, minimizing the cost and complexity of the generator lead line. The substation's maximum voltage of 69 kV indicates it is a significant node in the local grid.
• Transmission Proximity: The absence of high-voltage transmission lines within three miles confirms that interconnection will target the infrastructure at or emanating from the FAIRTON substation.
• Recommended Interconnection: For a distribution-scale project (≤5MW), the most likely and cost-effective Point of Interconnection (POI) would be a 12.47 kV or 13.2 kV distribution feeder originating from the FAIRTON substation. A direct 69 kV interconnection is technically feasible but would involve a dedicated transformer and protection scheme, making it significantly more expensive and typically reserved for larger utility-scale projects.
• Estimated Cost & Timeline: A ~1-mile overhead distribution line extension could range from $1.0M to $2.5M. Requires Verification via a utility pre-application report. The interconnecting utility is likely Atlantic City Electric (an Exelon company). Interconnection in PJM territory is subject to long queue times, often taking 24-48 months from application to commercial operation.
• Feeder Configuration: Requires Verification. We must obtain distribution system maps and hosting capacity data from the utility to identify the specific three-phase feeder, its current load profile, and its ability to accommodate a new generation source without requiring major substation upgrades.

4. Regulatory & Zoning Analysis

The regulatory pathway presents a moderate to high level of risk due to the agricultural zoning and discretionary nature of the required approvals.

• Authority Having Jurisdiction (AHJ): Hopewell Township, Cumberland County.
• Zoning Compatibility: The parcel is zoned "A" (Agriculture). BESS is not typically a permitted by-right use in agricultural zones. This zoning