RFQ for RNG Facility at RRBWWTP dtd 16SEP2026.pdf

RFQ to RNG Facility RRBWWTP Page 1 of 13 9/10/2026

EL PASO WATER – PUBLIC SERVICE BOARD

REQUEST FOR QUALIFICATIONS

RFQ56-26

September 20, 2026

RE: Request for Qualifications (RFQ)

PROJECT: RENEWABLE NATURAL GAS (RNG) FACILITY AT ROBERTO R.

BUSTAMANTE WASTEWATER TREATMENT PLANT (RRBWWTP)

ATTENTION:

El Paso Water (EPWater) is requesting qualification submittals as part of a two-step solicitation for the project:

RFQ for RNG Facility at RRBWWTP

All inquiries and communication regarding this Request for Qualifications must be submitted via:

https://epwater.ionwave.net/HomePage.aspx

If you have trouble accessing the Contract Documents, please contact the designated contact as per the EPWater P3 Policy. See Appendix D.

A non-mandatory pre-submittal meeting will be held for this project on October 06, 2026 at

10:30 a.m. (Mountain time) via Microsoft Teams: (Join the meeting now) https://epwater.ionwave.net/HomePage.aspx https://teams.microsoft.com/meet/257319323522707?p=dFLFkVzLYIe1o99GZI

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RFQ SCHEDULE

The following Schedule of Events represents EPWater’s best estimate of the schedule that will be followed. EPWater reserves the right to modify the schedule as required.

EPWater issues RFQ…………………………………….……………………September 20, 2026

Pre-Submittal Meeting …...…………………………………...October 6, 2026 at 10:30 AM

Deadline for Submission of Requests for Clarification …….........October 13, 2026 by 5:00 PM

EPWater provides Responses/Clarifications ……...………….…October 27, 2026 by 5:00 PM

Deadline for Qualification Submittal …………………………..November 25, 2026 by 1:30 PM

Notify Selected Team(s) Estimated Date………………………………..…December 23, 2026

PROJECT BACKGROUND AND DESCRIPTION

EPWater is a municipally owned utility dedicated to providing safe, reliable and sustainable water, wastewater, reclaimed water, and stormwater services to the residents and businesses of El Paso, Texas. EPWater is a component unit of the City of El Paso which is vested with complete control and authority of the management and operation of the water, wastewater and stormwater systems. EPWater plays a central role in supporting the community’s growth and environmental sustainability, with a strong commitment to resource and environmental stewardship, infrastructure innovation, and customer service. The utility actively pursues initiatives and collaborations that enhance water quality, deliver long-term stakeholder value, and improve system efficiency, ultimately benefiting its ratepayers.

EPWater operates multiple facilities to meet the city’s water requirements, including four drinking water treatment plants and four wastewater treatment plants. These facilities ensure environmental compliance while also providing reclaimed water for non-potable uses such as irrigation. Additionally, the utility aims to safeguard water quality and mitigate flood risk by overseeing comprehensive stormwater management programs.

EPWater is initiating an RFQ as part of a two-step Public Private Partnership (P3) solicitation for a

Renewable Natural Gas project at RRBWWTP as part of long-term sustainability strategy. This project aims to transform biogas generated from the plant’s anaerobic digestion process into pipeline-quality

RNG for injection into the regional natural gas network through a Public Private Partnership.

Roberto R. Bustamante Wastewater Treatment Plant

The Roberto R. Bustamante Wastewater Treatment Plant, located at 10001 Southside Rd. in El Paso

Texas is owned and operated by EPWater – Public Service Board (Figure 2-1), treats 29 million gallons per day (MGD) on an annual average basis with permitted capacity to treat 39 MGD. Its service area includes wastewater contributions from a large portion of East El Paso, Fort Bliss, the Lower

Valley Water District (LVWD), Paseo del Este Municipal Utility District and approximately 34 lift stations. RRBWWTP discharges water to the Riverside Canal, which is primarily used for irrigation purposes and to the Riverside Intercepting Drain, which subsequently sends flow to the Rio Bosque

Wetland Preserve. Residual biosolids are hauled to a local site privately owned and operated by Grupo

Cementos de Chihuahua (GCC) Sun City Materials LLC.

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Figure 2-1 Roberto R. Bustamante Wastewater Treatment Plant (RRBWWTP)

The RRBWWTP currently includes four primary clarifiers, four aeration basins, and four secondary clarifiers, supported by disinfection via chlorine contact basins and tertiary treatment via sand filters.

Solids handling infrastructure includes three gravity belt thickeners (GBTs), three anaerobic digesters, four belt filter presses (BFPs), and cake storage silos. Historical data show the plant consistently meets effluent quality standards, with optimal sludge settleability and stable operations. However, sustained flows near permitted limits have triggered regulatory requirements for expansion planning.

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Figure 2-2 Process Flow Diagram

EPWater completed an alternatives analysis for biogas utilization using the two bioenergy recovery options listed below:

• Combined Heat and Power (CHP) for onsite electricity and heat generation

• RNG production for pipeline injection and sale as renewable transportation fuel, generating renewable identification numbers (RINs)

Following this evaluation, EPWater selected RNG production as the preferred pathway for biogas utilization. The new desired system will include biogas pretreatment, RNG upgrading system, and pipeline injection infrastructure. This approach maximizes long-term value through RIN credits, supports sustainability goals, and positions EPWater for potential future participation in transportation fuel markets (eRINs).

For the project delivery approach EPWater decided to seek the implementation of RNG production through a P3 model to minimize operational and market risks. This delivery approach will leverage private sector expertise and investment while ensuring EPWater retains overall stake in the project and continues to meet its core operational mission.

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A phased implementation strategy for the RNG system is proposed to utilize the biogas produced at the RRBWWTP, commencing with Phase 1 focusing on utilizing the current biogas produced. Upon successful implementation of phase 1, EPWater maybe open to consider a Phase 2 for future enhanced gas production through co-digestion or substrate/high strength waste augmentation. Phase 2 can include two potential development pathways and provides potential opportunities for the P3 Private

Entity or Private Entities to integrate additional enhancements or innovative approaches as part of their proposed approach.

I. Option 1: Co-Digestion of fats, oil, and grease (FOG) and other high-strength waste using the existing anaerobic digesters at RRBWWTP. If this option is recommended by the P3 Private

Entity or Private Entities, they will have to suggest measures to mitigate operational risks to

EPWater for using the existing digesters.

II. Option 2: P3 Private Entity or Private Entities may construct a new on-site digester to generate additional biogas independent of the existing digesters. The raw biogas produced from both systems would be combined prior to raw biogas treatment. This configuration enables operational independence between digesters, thereby reducing risk to EPWater.

Phase 2 is a possible future initiative and is not a scored evaluated part of this solicitation. The focus of this solicitation is strictly on Phase 1 and interested entities may choose to submit information relevant to possible future Phase 2 at their discretion.

Appendix A provides additional information on the anaerobic digestion process, biogas production and quality data. Appendix B and Appendix C outline the RNG injection point in coordination with

ONE Gas, along with ONE Gas’s biomethane specifications respectively. Appendix D lists the El

Paso Water Public Private Partnership guidelines.

The selection of P3 Private Entity or Private Entities for the RNG project will be done using a two-step solicitation process – RFQ followed by the Request for Proposal (RFP):

1. RFQ: Interested entities will participate in the initial RFQ phase by submitting a comprehensive Qualification Submittal. This stage focuses on evaluating relevant experience and professional qualifications. Interviews are not anticipated during this phase.

2. RFP: EPWater will invite firms deemed most qualified based on their Qualification Submittal to participate in the next phase, the RFP. During this stage, the shortlisted firms will receive detailed project information and specific instructions for preparing a comprehensive proposal.

These proposals should clearly outline the firm’s approach to project delivery, team structure, projected costs, and other essential components to successfully deliver and execute the project.

This phase allows firms to showcase their understanding of the project’s objectives, present their management strategies, propose innovative solutions, and evaluate potential alternatives.

EPWater will most likely choose to conduct interviews with the shortlisted firms as part of the selection process.

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By implementing this structured selection approach, EPWater seeks to engage a highly qualified firm capable of executing the RNG project with exceptional quality and efficiency, while providing the best overall value to EPWater

EPWater will select and notify up to three (3) firms for the RFP phase of the solicitation. Firms that were not selected will be notified in writing of the decision. EPWater will issue an RFP exclusively to these shortlisted firms. The RFP will outline detailed technical requirements, performance standards, commercial terms, and proposal submission instructions.

Shortlisted firms will be invited to participate in a pre-proposal individual meeting and site visit to review project details, seek clarifications, and confirm their technical understanding prior to the proposed submission. The individual meetings will be confidential to allow the shortlisted Private

Entity or Private Entities to freely discuss their ideas.

EPWater reserves all rights to shortlist the entities that will be invited for the RFP phase and make the final selection of the P3 Private Entity or Private Entities partner.

PROJECT SCOPE

EPWater is soliciting responses from Private Entity or Private Entities for the RNG project using a two-step solicitation process – RFQ followed by RFP. In advance of issuing the RFP for P3, EPWater is seeking to pre-qualify up to three (3) firms that may be interested and have demonstrated experience in the execution of similar projects through the RFQ phase. The Project Overall Scope of Services shall broadly include, but are not limited to:

• Design: The P3 Private Entity or Private Entities will prepare all design drawings, specifications, and all other necessary design-related work products required to construct the

RNG system and interconnection station with ONE Gas in compliance with Texas Commission on Environmental Quality (TCEQ) and other regulatory and compliance requirements with local, state and federal agencies as applicable. Expected design-related activities will include the following, o Designing the raw biogas conditioning or pre-treatment system, RNG upgrading system, coordinating the interconnection station with ONE Gas’s infrastructure, and other RNG ancillary systems as required.

o Identifying and integrating opportunities to enhance construction and operational efficiency within the design.

o Abiding by all local, state, and federal design review processes as applicable.

o Incorporating all local, state, and federal design requirements, as applicable.

o Obtaining all required permits and regulatory approvals necessary for project design and pre-construction activities.

• Permitting and Approvals: The P3 Private Entity or Private Entities will obtain, maintain, and comply with all necessary permits, licenses, and approvals required for project design, construction, operation and system integration, except those expressly designated as the

RFQ to RNG Facility RRBWWTP Page 7 of 13 9/10/2026 responsibility of the EPWater in the P3 Agreement. Such responsibilities will be clearly identified by the Private Entity or Private Entities as part of their proposal. Unless identified as EPWater’s responsibility, it is assumed that the required permitting and regulatory approval tasks will be part of the P3 Private Entity or Private Entities scope.

• Construction: The P3 Private Entity or Private Entities will be responsible for the execution of project construction, encompassing equipment and subcontractor procurement, acquisition of necessary construction permits, and implementation of all construction, system startup, commissioning and performance testing activities. Further, the P3 Private Entity or Private

Entities shall also ensure seamless integration of the new RNG system into both EPWater’s and ONE Gas’s infrastructure. The scope of the expected construction-phase work includes:

o Obtaining all permits and regulatory approvals required for commencing and executing construction.

o Constructing the gas conditioning and pre-treatment system, RNG upgrading system, coordinating interconnection station with ONE Gas, and all other supporting systems as necessary including but not limited to pipes, electrical systems, instrumentation and controls etc.

o Complying with all local, state of Texas and federal labor and wage requirements.

o Fulfilling all local, state of Texas and federal permit and regulatory requirements.

o Carrying out all required project commissioning activities, including system startup and acceptance testing, and preparing a comprehensive operations and maintenance manual.

o Ensuring seamless integration of the new RNG system into both EPWater’s and ONE

Gas’s infrastructure.

• Operations and Maintenance: Upon completion, the P3 Private Entity or Private Entities will operate the RNG Project in compliance with all technical, environmental, and safety requirements throughout the term of the P3 Agreement ensuring reliable and continuous performance. The initial contract term is anticipated to be fifteen (15) years; however, the final duration may be subject to discussion and adjustment during the RFP solicitation phase and as part of final contract negotiation. The tasks shall include but are not limited to:

o Operating and maintaining the RNG system in full compliance with all contract provisions and applicable regulations.

o Executing a repair and replacement program for major and minor equipment in accordance with contractual requirements.

o Managing the transport and proper disposal of residuals generated as the part of upgrading biogas to RNG.

o Meeting all labor and wage standards established by local, state and federal entities.

RFQ to RNG Facility RRBWWTP Page 8 of 13 9/10/2026 o Maintaining the O&M manual, providing staff training, and ensuring compliance with all contractual and legal requirements.

• Security: The P3 Private Entity or Private Entities will implement and maintain site security measures to protect project assets, infrastructure, and personnel throughout construction and

O&M.

• Financing: The P3 Private Entity or Private Entities will be responsible for securing and providing full project financing throughout its intended operational life, including funding for the design, construction, operation, and maintenance of the system.

• Marketing and Revenue Management: The P3 Private Entity or Private Entities will manage the marketing, sale, and monetization of renewable natural gas and associated environmental attributes or credits (e.g., RINs) and will prepare a framework to provide fixed or revenue-sharing payments to the EPWater as agreed upon in the P3 Agreement. Other avenues for managing the offtake will be allowed as part of the value-added approach to mitigate and manage market risks. It shall be up to the P3 Private Entity or Private Entities to propose the best recommendation for managing gas offtake strategy over the near and long term.

The El Paso Water Utilities (EPWater) adheres to the Cone of Silence policy which prohibits any communication regarding the proposal between potential offerors (and subcontractors) and EPWater

Board Members, Staff, and assigned Consulting Engineers. The provisions do not apply to oral communications with the Purchasing Agent or Administrative Analyst provided the communications is limited strictly to matters of process or procedure already contained in the solicitation document, oral communications at pre-proposal conferences, or communications in writing (email preferred) submitted to the Administrative Analyst in response to inquiries regarding the offer. In addition to any other penalties provided by law, violation of the Cone of Silence by any offeror shall render that offeror's proposal voidable. Any person having personal knowledge of a violation of these provisions shall report such violations to the EPWater General Counsel and or the Purchasing Agent in writing.

SUBMITTAL EVALUATION

All firms must follow the requirements listed below. It is the firm's responsibility to ensure compliance with these requirements. Failure to follow these instructions may result in disqualification.

The Qualification Submittal must be submitted electronically via EPWater’s Ion Wave.

In addition to electronic submission via Ion Wave, El Paso Water will also accept sealed

Qualification Submittal packets delivered in person or by mail. These must be received no later than the deadline stated in the RFQ at the following address:

El Paso Water – Purchasing Department

1154 Hawkins Blvd., El Paso, TX 79925

Attn: Purchasing and Contracts Department

Please ensure the envelope is clearly marked with:

RFQ for RNG Facility at RRBWTP

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Late submissions, whether electronic or physical, will definitely not be accepted.

SUBMITTAL

The P3 Private Entity or Private Entities shall demonstrate proven expertise in managing and executing projects of similar scope and complexity to the Roberto R. Bustamante Treatment Plant’s proposed

RNG project, specifically within the framework of public-private collaboration. P3 Private Entity or

Private Entities will be assessed based on the following evaluation criteria. It is expected that the

Private Entity or Private Entities shall submit the Qualification Submittal or their responses structured in the same order and sequence listed below for ease of navigation and clarity.

1. Financial Condition and Management Stability (25 Points)

This criterion evaluates the P3 Private Entity or Private Entities’s overall financial strength, creditworthiness, and organizational stability to ensure the ability to finance, deliver, and sustain the project under a long-term P3 structure.

A. Audited Financials: Provide complete audited financial statements for the past three (3) fiscal years, including the balance sheet, income statement, cash flow statement, notes to financial statements, auditor’s report, and supporting schedules.

B. Financial Ratios: Highlight important financial ratios such as current ratio, debt to equity ratio, and interest coverage ratio demonstrating the proposer’s capacity to meet ongoing financial obligations.

C. Funding: Demonstrate access to capital through evidence of internal reserves, or credit lines that ensure adequate funding for design, construction and long-term operations and maintenance.

D. Corporate Structure and Ownership History: Include documentation of corporate structure, management continuity and ownership history (including any mergers, acquisitions, changes in parent company, and major shareholders) over the past five (5) years.

E. Financial Integrity and Restructuring: Include disclosure of bankruptcy filings, financial restructuring, or defaults within the past ten (10) years, including description of resolution and corrective measures implemented.

F. Litigation, Claims, and Disputes: Provide documentation of any litigation, claims or disputes within the last ten (10) years, including status and any impact on operations.

G. Value Added Information: Provide any supplemental marketing materials that show the value-added aspects of the Private Entity or Private Entities under the

‘Financial Condition and Management Stability’ Criterion Category.

2. Safety (15 Points)

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This criterion evaluates the P3 Private Entity or Private Entities’ commitment to workplace safety and health, regulatory compliance and the implementation of systematic assurance and control practices that ensure safe project delivery within an operational wastewater environment.

A. Corporate Safety Program: Provide a documented corporate safety program outlining policies, procedures and responsibilities that demonstrate a proactive and accountable safety culture.

B. Safety Performance Data: Provide five (5) years of safety performance data, including total recordable injury rate (TRIR) and Days Away, Restricted, or

Transferred (DART) rates calculated using standard Occupational Safety and

Health Administration (OSHA) formulas.

o Provide a record of safety performance on comparable wastewater, energy, or infrastructure projects, indicating lost-time incidents and overall safety outcomes.

C. OSHA Citations and Violations: List any OSHA citations or violations received in the past five (5) years, including a brief description, corrective actions, and resolution status.

o Provide the results of the OSHA Establishment Search for the past five (5) years.

D. Safety Events: Identify any process safety events within the past five (5) years that may have occurred at EPA risk management program covered facility or OSHA process safety management covered process, including cause and corrective measures.

E. Training and Certifications: Describe approach to safety training and certification for personnel assigned to the Project consistent with applicable requirements and industry’s best practices.

F. Experience Modification Rate (EMR): Provide three (3) years of Experience

Modification Rate.

G. Value Added Information: Provide any supplemental marketing materials that

‘Safety’ Criterion Category.

3. Proposed Staff, Resources, Organization, and Technical Capability (30 Points)

This criterion evaluates the qualifications, structure, and technical expertise of the P3

Private Entity or Private Entities’ project delivery team including key sub-contractors to effectively develop, integrate, and operate the project under a long-term P3 framework.

Emphasis will be placed on demonstrated experience with similar biogas to RNG projects.

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A. Key Personnel Qualifications and Experience: Provide qualifications and relevant experience of key personnel, including project managers, technical and engineering leads, finance lead, permitting lead, collaborative delivery lead, construction superintendent and construction manager/engineer of record, startup and commissioning lead, subject matter experts including specialists and experts for off-take gas agreement, and O&M specialists with direct experience delivering

RNG projects. Also identify and include any other key personnel that the Private

Entity or Private Entities feels is necessary for successful delivery and execution of the RNG project. Resumes should be limited to 1-page per person and will not count toward overall page limit.

B. Organization and Reporting Structure: Describe the project organization reporting structure, clearly defining roles, responsibilities, and communication protocols to ensure effective coordination between design, construction, startup and commissioning, and ongoing O&M.

C. Team Availability and Commitment: Demonstrate the availability and commitment of key team members across all project phases, along with evidence of prior collaboration on comparable RNG projects.

D. System Reliability and Operational Performance: Provide evidence of the reliability, uptime, and maintainability of the proposed system design, including redundancy features and lifecycle performance data.

E. Integration with Existing Facilities: Describe how the proposed system will integrate with existing wastewater treatment and utility infrastructure, addressing constructability, operational coordination, and continuity of treatment during implementation.

F. Value Added Information: This sub-criterion is intended to encourage P3 Private

Entity or Private Entities to present innovative approaches that enhance overall project economics, increase biogas recovery, and optimize lifecycle performance.

Qualification Submittals that incorporate creative technical, financial, or operational solutions resulting in measurable efficiency, cost savings, or risk reduction will be preferred. Consideration will also be given to initiatives that advance environmental stewardship, promote social equity, and deliver tangible community benefits such as greenhouse gas reduction, local workforce participation, or educational partnerships.

4. Experience (30 Points)

This criterion evaluates the P3 Private Entity or Private Entities’ demonstrated experience in developing, constructing, and operating RNG projects, with particular emphasis on past performance, cost control, and familiarity with local conditions relevant to Texas and the

United States.

A. Representative Municipal RNG Project Experience: Provide examples of RNG projects at municipal wastewater treatment projects between 20 MGD and 50

MGD, or of similar process complexity, showing scope, role, contract type, RFQ to RNG Facility RRBWWTP Page 12 of 13 9/10/2026 completion year, and outcomes that demonstrate experience with facilities of comparable scale. Facilities lower than and greater than the range prescribed above will be accepted if project scope and relevance are applicable.

B. Portfolio of Operational RNG Installations: List the number of RNG installations completed and currently in operation, including project locations, start-up years, system capacities, and technology type, demonstrating technical reliability and operational maturity.

C. United States Project Experience: Identify completed projects within the United

States (minimum of three projects and no more than ten), summarizing design standards and utility coordination practices that reflect familiarity with United

States regulatory and construction environments.

o For each representative project, indicate original construction cost and final project cost, noting reasons for any variance and corrective measures implemented to control costs and schedules.

o For each representative project, provide quantitative performance data from prior installations such as gas recovery efficiency, methane content, or uptime demonstrating sustained and verifiable operational performance.

o For each representative project, include client references, with owner name, project location, scope, contact person, email, and phone number, accompanied by a summary of the project.

o Evaluation preference: will be given for local projects executed in Texas, describing local permitting experience, understanding of regional environmental conditions, and coordination with Texas utilities or municipalities.

D. Value Added Information: Provide any supplemental marketing materials that

‘Experience’ Criterion Category.

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POST SELECTION PROCESS / BRIEFINGS AND INQUIRIES:

Teams that submit a RFQ response may request a debriefing to ask questions concerning their Submittal. Requests and inquiries regarding a debriefing request should be submitted via the A/E Selection email:

aeselections@epwater.org.

EPWater will evaluate inquiries and issue an appropriate response. All questions, responses and additional information will be included and issued in an Addendum.

ATTACHMENTS:

1. Appendix A – RRBWWTP Anaerobic Digestion Process Review

2. Appendix B – ONE Gas Injection Location

3. Appendix C – One Gas Biomethane Specification

4. Appendix D – El Paso Water Public Private Partnership Guideline file:///C:/Users/acastill/AppData/Local/Microsoft/Windows/INetCache/Content.Outlook/SOR0V2H4/aeselections@epwater.org