⚡ MOORES FERRY RD

MEMORANDUM

TO: Sunland America Corp. Development Committee
FROM: Senior BESS Site Evaluation Analyst
DATE: October 26, 2023
SUBJECT: Comprehensive Site Diligence Analysis – Moores Ferry Rd (APN 55-36), Greensville County, VA

This report provides a comprehensive due diligence analysis for the 226.06-acre parcel located on Moores Ferry Rd in Greensville County, Virginia (APN 55-36) for its potential as a distribution or utility-scale Battery Energy Storage System (BESS) project. The analysis identifies a site with one exceptional characteristic—grid proximity—but which is subject to significant environmental, regulatory, and financial incentive challenges that must be addressed before committing significant development capital.

1. Site Access & Topography

Road Access & Equipment Delivery: The property has frontage on Moores Ferry Road. Based on satellite imagery, this appears to be a two-lane, likely paved, rural county road. While generally adequate for construction traffic, its specific condition, width, and weight-bearing capacity are unknown. A physical site visit is required to verify the road is suitable for the transport of heavy equipment, such as multi-ton transformers and 80,000 lb battery containers. We must confirm there are no restrictive low-clearance bridges or sharp turns between the site and major highways like I-95 or US-58.

Terrain & Buildability: Located in Virginia's coastal plain region, the site's topography is expected to be relatively flat to gently rolling, which is highly favorable for minimizing civil engineering and grading costs. However, the provided data indicating only 52.6 "buildable acres" out of a 226-acre parcel is a major red flag, strongly suggesting the presence of significant topographical or environmental constraints (e.g., steep slopes, wetlands, or floodplains) on the remaining ~77% of the property.

Easement Concerns: A formal access easement from Moores Ferry Road to the specific 52.6-acre buildable area will need to be secured. More importantly, a right-of-way (ROW) easement will be required to construct the 0.2-mile generation tie-line (gen-tie) to the target transmission line. The ownership and any existing encumbrances on the intervening land must be determined through a title search.

2. Environmental Constraints

FEMA Flood Zone: The site's flood zone designation is listed as "Unknown." This is a critical data gap and a potential fatal flaw. Development of high-value electrical infrastructure within a Special Flood Hazard Area (e.g., Zone AE) is generally infeasible due to equipment risk, prohibitive insurance costs, and permitting challenges. Action: Immediate review of FEMA Flood Insurance Rate Maps (FIRMs) is required.

Wetlands: The presence of wetlands is "Unknown" but highly probable given the large discrepancy between total and buildable acreage. Any development will require strict adherence to federal (Army Corps of Engineers) and state (Virginia DEQ) regulations, including significant setbacks (typically 50-100 feet) from delineated wetland boundaries. Action: A formal wetland delineation is a mandatory, high-priority due diligence step.

Habitat & Species: The data indicates no critical habitat or protected areas on site, which is a positive initial finding. However, a desktop review using the USFWS IPaC (Information for Planning and Consultation) tool is recommended to screen for any federally listed threatened or endangered species (e.g., Northern long-eared bat) whose presence could trigger consultation requirements or operational restrictions.

Brownfield/Superfund Status: The site is clear of any nearby brownfield or superfund sites. While this mitigates environmental liability risk, it also means the project is ineligible for the 10% IRA Brownfield ITC adder, which is a notable financial disadvantage.

Pipeline Proximity: The absence of pipelines within a 3-mile radius is a significant safety and layout advantage, eliminating concerns related to explosion risk, setbacks, and coordination with pipeline operators.

3. Grid Infrastructure & Interconnection

Grid Proximity: The site's primary strength is its exceptional proximity to grid infrastructure. A 115kV transmission line operated by Virginia Electric & Power Co (Dominion Energy) is located just 0.2 miles from the parcel boundary. This is an