[Federal Register Volume 83, Number 244 (Thursday, December 20, 2018)]
[Proposed Rules]
[Pages 65328-65331]
[FR Doc No: 2018-27478]

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ENVIRONMENTAL PROTECTION AGENCY

40 CFR Part 1552

[EPA-HQ-OARM-2018-0742; FRL 9987-89-OARM]

Environmental Protection Agency Acquisition Regulation (EPAAR)
Clause Update for Submission of Invoices

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) is revising its
Submission of Invoices clause to add electronic invoicing requirements.
In 2019 the EPA will begin using the Invoice Processing Platform (IPP),
which is a secure web-based service provided by the U.S. Treasury that
efficiently manages government invoicing.

DATES: Comments must be received on or before February 19, 2019.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-HQ-
OARM-2018-0742, at https://www.regulations.gov. Follow the online
instructions for submitting comments. Once submitted, comments cannot
be edited or removed from Regulations.gov. The EPA may publish any
comment received to its public docket. Do not submit electronically any
information you consider to be Confidential Business Information (CBI)
or other information whose disclosure is restricted by statute.
Multimedia submissions (audio, video, etc.) must be accompanied by a
written comment. The written comment is considered the official comment
and should include discussion of all points you wish to make. The EPA
will generally not consider comments or comment contents located
outside of the primary submission (i.e. on the web, cloud, or other
file sharing system). For additional submission methods, the full EPA
public comment policy, information about CBI or multimedia submissions,
and general guidance on making effective comments, please visit https://www2.epa.gov/dockets/commenting-epa-dockets.

FOR FURTHER INFORMATION CONTACT: Thomas Valentino, Policy, Training and
Oversight Division, Acquisition Policy and Training Branch (3802R),
Environmental Protection Agency, 1200 Pennsylvania Ave. NW, Washington,
DC 20460; telephone number:<PHONE_NUMBER>; email address:
<EMAIL_ADDRESS>
SUPPLEMENTARY INFORMATION:

I. General Information

    1. Submitting Classified Business Information. Do not submit CBI to
EPA website https://www.regulations.gov or email. Clearly mark the part
or all of the information that you claim to be CBI. For CBI information
in a disk or CD-ROM that you mail to EPA, mark the outside of the disk
or CD-ROM as CBI, and then identify electronically within the disk or
CD-ROM the specific information that is claimed as CBI. In addition to
one complete version of the comment that includes information claimed
as CBI, a copy of the comment that does not contain the information
claimed as CBI must be submitted for inclusion in the public docket.
Information so marked will not be

disclosed except in accordance with procedures set forth in 40 CFR part
2.
    2. Tips for Preparing Your Comments. When submitting comments,
remember to:
    [ssquf] Identify the rulemaking by docket number and other
identifying information (subject heading, Federal Register date and
page number).
    [ssquf] Follow directions--The Agency may ask you to respond to
specific questions or organize comments by referencing a Code of
Federal Regulations (CFR) Part or section number.
    [ssquf] Explain why you agree or disagree, suggest alternatives,
and substitute language for your requested changes.
    [ssquf] Describe any assumptions and provide any technical
information and/or data that you used.
    [ssquf] If you estimate potential costs or burdens, explain how you
arrived at your estimate in sufficient detail to allow for it to be
reproduced.
    [ssquf] Provide specific examples to illustrate your concerns, and
suggest alternatives.
    [ssquf] Explain your views as clearly as possible, avoiding the use
of profanity or personal threats.
    [ssquf] Make sure to submit your comments by the comment period
deadline identified.

II. Background

    The EPA is revising clause 1552.232-70, Submission of Invoices, to
add electronic invoicing requirements. On September 13, 2018, the EPA
issued a direct final rule in 83 FR 46418 that in part revised the
subject clause to incorporate a 1996 class deviation and make minor
administrative updates. This proposed rule revises the clause again
since the EPA will begin using the Invoice Processing Platform (IPP) in
2019, which is a secure web-based service provided by the U.S. Treasury
that efficiently manages government invoicing. Currently the EPA
requires contractors and vendors to submit paper invoices, which are
inefficient and costly. The EPA will also begin using IPP to satisfy
the requirements of Office of Management and Budget (OMB) Memorandum M-
15-19, Improving Government Efficiency and Saving Taxpayer Dollars
Through Electronic Invoicing. By changing the subject clause to require
electronic invoicing, the EPA will reap benefits of efficiency and cost
that have become ubiquitous in modern commerce, and be in compliance
with Memorandum M-15-19.

III. Proposed Rule

    The proposed rule proposes to amend EPAAR Part 1552, Solicitation
Provisions and Contract Clauses, by revising EPAAR Sec.  1552.232-70,
Submission of Invoices.
    1. EPAAR Sec.  [thinsp]1552.232-70, Submission of Invoices clause
is revised to provide new electronic invoicing requirements as the EPA
begins using the IPP electronic-invoicing program in 2019. The clause
is revised by replacing the current preamble and paragraphs (a) and (b)
with new paragraphs (a) and (b), that update the old paper invoicing
instructions to electronic invoicing. Paragraph (g)(5) is being revised
to remove references to suspended costs, which are not authorized under
IPP. The ``Note to paragraph (i)'' and ``Note to paragraph (j)'' are
also being revised to remove references to suspended costs. Finally,
paragraph (k) and ``Note to paragraph (k)'' are being removed because
suspended costs are not allowed under IPP, which re-letters the last
three paragraphs redesignating paragraphs (l) through (n) as paragraphs
(k) through (m), respectively.

IV. Statutory and Executive Orders Reviews

A. Executive Order 12866: Regulatory Planning and Review and Executive
Order 13563: Improving Regulation and Regulatory Review

    This action is not a ``significant regulatory action'' under the
terms of Executive Order (E.O.) 12866 (58 FR 51735, October 4, 1993)
and is therefore not subject to review under the E.O.

B. Paperwork Reduction Act

    This action does not impose an information collection burden under
the provisions of the Paperwork Reduction Act, 44 U.S.C. 3501 et seq.
Burden is defined at 5 CFR 1320.3(b).

C. Regulatory Flexibility Act (RFA), as Amended by the Small Business
Regulatory Enforcement Fairness Act of 1996 (SBREFA), 5 U.S.C. 601 et
seq.

    The Regulatory Flexibility Act generally requires an agency to
prepare a regulatory flexibility analysis of any rule subject to notice
and comment rulemaking requirements under the Administrative Procedure
Act or any other statute; unless the agency certifies that the rule
will not have a significant economic impact on a substantial number of
small entities. Small entities include small businesses, small
organizations, and small governmental jurisdictions. For purposes of
assessing the impact of this final rule on small entities, ``small
entity'' is defined as: (1) A small business that meets the definition
of a small business found in the Small Business Act and codified at 13
CFR 121.201; (2) a small governmental jurisdiction that is a government
of a city, county, town, school district or special district with a
population of less than 50,000; or (3) a small organization that is any
not-for-profit enterprise which is independently owned and operated and
is not dominant in its field. After considering the economic impacts of
this rule on small entities, I certify that this action will not have a
significant economic impact on a substantial number of small entities.
In determining whether a rule has a significant economic impact on a
substantial number of small entities, the impact of concern is any
significant adverse economic impact on small entities, because the
primary purpose of the regulatory flexibility analyses is to identify
and address regulatory alternatives ``which minimize any significant
economic impact of the proposed rule on small entities'' 5 U.S.C. 503
and 604. Thus, an agency may certify that a rule will not have a
significant economic impact on a substantial number of small entities
if the rule relieves regulatory burden, or otherwise has a positive
economic effect on all of the small entities subject to the rule. This
action revises an existing EPAAR clause that will not have a
significant economic impact on a substantial number of small entities.
We continue to be interested in the potential impacts of the rule on
small entities and welcome comments on issues related to such impacts.

D. Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA, Public
Law 104-4, establishes requirements for Federal agencies to assess the
effects of their regulatory actions on State, Local, and Tribal
governments and the private sector. This rule contains no Federal
mandates (under the regulatory provisions of the Title II of the UMRA)
for State, Local, and Tribal governments or the private sector. The
rule imposes no enforceable duty on any State, Local or Tribal
governments or the private sector. Thus, the rule is not subject to the
requirements of sections 202 and 205 of the UMRA.

E. Executive Order 13132: Federalism

    Executive Order 13132, entitled ``Federalism'' (64 FR 43255, August
10, 1999), requires EPA to develop an accountable process to ensure
``meaningful and timely input by State and Local officials in the
development of regulatory policies that have

federalism implications. ``Policies that have federalism implications''
is defined in the Executive Order to include regulations that have
``substantial direct effects on the States, on the relationship between
the national government and the States, or on the distribution of power
and responsibilities among the various levels of government.'' This
rule does not have federalism implications. It will not have
substantial direct effects on the States, on the relationship between
the national government and the States, or on the distribution of power
and responsibilities among the various levels of government as
specified in Executive Order 13132.

F. Executive Order 13175: Consultation and Coordination With Indian
Tribal Governments

    Executive Order 13175, entitled ``Consultation and Coordination
with Indian Tribal Governments'' (65 FR 67249, November 9, 2000),
requires EPA to develop an accountable process to ensure ``meaningful
and timely input by tribal officials in the development of regulatory
policies that have tribal implications.'' This rule does not have
tribal implications as specified in Executive Order 13175.

G. Executive Order 13045: Protection of Children From Environmental
Health and Safety Risks

    Executive Order 13045, entitled ``Protection of Children from
Environmental Health and Safety Risks'' (62 FR 19885, April 23, 1997),
applies to any rule that: (1) Is determined to be economically
significant as defined under E.O. 12886, and (2) concerns an
environmental health or safety risk that may have a proportionate
effect on children. This rule is not subject to E.O. 13045 because it
is not an economically significant rule as defined by Executive Order
12866, and because it does not involve decisions on environment health
or safety risks.

H. Executive Order 13211: Actions That Significantly Affect Energy
Supply, Distribution, or Use

    This action is not subject to Executive Order 13211, ``Actions
Concerning Regulations That Significantly Affect Energy Supply,
Distribution or Use'' (66 FR 28335 (May 22, 2001), because it is not a
significant regulatory action under Executive Order 12866.

I. National Technology Transfer and Advancement Act of 1995 (NTTAA)

    Section 12(d) (15 U.S.C. 272 note) of the National Technology
Transfer and Advancement Act of 1995, Public Law 104-113, directs EPA
to use voluntary consensus standards in its regulatory activities
unless to do so would be inconsistent with applicable law or otherwise
impractical. Voluntary consensus standards are technical standards
(e.g., materials specifications, test methods, sampling procedures and
business practices) that are developed or adopted by voluntary
consensus standards bodies. The NTTAA directs EPA to provide Congress,
through OMB, explanations when the Agency decides not to use available
and applicable voluntary consensus standards. This action does not
involve technical standards. Therefore, EPA is not considering the use
of any voluntary consensus standards.

J. Executive Order 12898: Federal Actions To Address Environmental
Justice in Minority Populations and Low-Income Populations

    Executive Order 12898 (59 FR 7629 (February 16, 1994) establishes
federal executive policy on environmental justice. Its main provision
directs federal agencies, to the greatest extent practicable and
permitted by law, to make environmental justice part of their mission
by identifying and addressing, as appropriate, disproportionately high
and adverse human health or environmental effects of their programs,
policies, and activities on minority populations and low-income
populations in the United States. EPA has determined that this proposed
rule will not have disproportionately high and adverse human health or
environmental effects on minority or low-income populations because it
does not affect the level of protection provided to human health or the
environment in the general public.

K. Congressional Review Act

    The Congressional Review Act, 5 U.S.C. 801 et seq., as added by the
Small Business Regulatory Enforcement Fairness Act of 1996, generally
provides that before a major rule may take effect, the agency
promulgating the rule must submit a rule report, which includes a copy
of the rule, to each House of the Congress and to the Comptroller
General of the United States. Section 804(2) defines a ``major rule''
as any rule that the Administrator of the Office of Information and
Regulatory Affairs of the Office of Management and Budget finds has
resulted in or is likely to result in (1) an annual effect on the
economy of $100,000,000 or more; (2) a major increase in costs or
prices for consumers, individual industries, Federal, State, or local
government agencies, or geographic regions; or (3) significant adverse
effects on competition, employment, investment, productivity,
innovation, or on the ability of United States-based enterprises to
compete with foreign-based enterprises in domestic and export markets.
EPA is not required to submit a rule report regarding this action under
section 801 as this is not a major rule by definition.

List of Subjects in 48 CFR Part 1552

    Environmental protection, Solicitation provisions and contract
clauses.

    Dated: December 3, 2018.
Kimberly Y. Patrick,
Director, Office of Acquisition Solutions.

    For the reasons set forth in the preamble, EPA proposes to amend 48
CFR part 1552 as follows:

PART 1552--SOLICITATION PROVISIONS AND CONTRACT CLAUSES

0
1. Authority: The authority citation for part 1552 continues to read as
follows:

    Authority: 5 U.S.C. 301 and 41 U.S.C. 418b.

0
2. Section 1552.232-70 is amended by:
0
a. Revising paragraphs (a), (b), and (g)(5);
0
b. Revising ``Note to paragraph (i)'' and ``Note to paragraph (j)'';
0
c. Removing paragraph (k) and ``Note to paragraph (k)''; and
0
d. Redesignating paragraphs (l) through (n) as paragraphs (k) through
(m).
    The revisions read as follows:

Sec.  1552.232-70  Submission of invoices.

* * * * *
    (a) Electronic invoicing and the Invoice Processing Platform
(IPP)--
    (1) Definitions. As used in this clause--
    ``Contract financing payment'' and ``invoice payment'' are defined
in Federal Acquisition Regulation (FAR) 32.001.
    ``Electronic form'' means an automated system that transmits
information electronically from the initiating system to all affected
systems. Facsimile, email, and scanned documents are not acceptable
electronic forms for submission of payment requests. However, scanned
documents are acceptable when they are part of a submission of a
payment request made using Invoice Processing Platform or another
electronic form authorized by the Contracting Officer.
    ``Payment request'' means any request for contract financing
payment or

invoice payment submitted by the Contractor under this contract.
    (2) (i) Except as provided in paragraph (c) of this clause, the
Contractor shall submit invoices using the electronic invoicing program
Invoice Processing Platform (IPP), which is a secure web-based service
provided by the U.S. Treasury that more efficiently manages government
invoicing.
    (ii) Under this contract, the following documents are required to
be submitted as an attachment to the IPP invoice: (This is a fill-in
for acceptable types of required documentation, such as an SF 1034 and
1035, or an invoice/self-designed form on company letterhead that
contains the required information.)
    (iii) The Contractor's Government Business Point of Contact (as
listed in System for Award Management (SAM)) will receive enrollment
instructions via email from the IPP. The Contractor must register
within 3 to 5 days of receipt of such email from IPP.
    (iv) Contractor assistance with enrollment can be obtained by
contacting the IPP Production Helpdesk via email at
<EMAIL_ADDRESS>or by telephone at (866) 973-
3131.
    (3) If the Contractor is unable to comply with the requirement to
use IPP for submitting invoices for payment, the Contractor shall
submit a waiver request in writing to the Contracting Officer. The
Contractor may submit an invoice using other than IPP only when--
    (i) The Contracting Officer administering the contract for payment
has determined, in writing, that electronic submission would be unduly
burdensome to the Contractor; and in such cases, the Contracting
Officer shall modify the contract to include a copy of the
Determination; or
    (ii) When the Governmentwide commercial purchase card is used as
the method of payment.
    (4) The Contractor shall submit any non-electronic payment requests
using the method or methods specified in Section G of the contract.
    (5) In addition to the requirements of this clause, the Contractor
shall meet the requirements of the appropriate payment clauses in this
contract when submitting payment requests.
    (6) Invoices submitted through IPP will be either rejected, or
accepted and paid, in their entirety, and will not be paid on a partial
basis.
    (b) The Contractor shall prepare its invoice or request for
contract financing payment in accordance with FAR 32.905 on the
prescribed Government forms, or the Contractor may submit self-designed
forms which contain the required information. Standard Form 1034,
Public Voucher for Purchases and Services other than Personal, is
prescribed for used by contractors to show the amount claimed for
reimbursement. Standard Form 1035, Public Voucher for Purchases and
Services other than Personal--Continuation Sheet, is prescribed for use
to furnish the necessary supporting detail or additional information
required by the Contracting Officer.
* * * * *
    (g) * * *
    (5) Voucher Number--Insert the appropriate serial number of the
voucher. A separate series of consecutive numbers, beginning with
Number 1, shall be used by the contractor for each new contract. For an
adjustment invoice, write ``[invoice number] #Adj'' at the voucher
number. For a final invoice, put invoice number F. For a completion
invoice, put invoice number #C.
* * * * *

    Note to paragraph
    (i)--Any costs requiring advance consent by the Contracting
Officer will be considered improper and will be disallowed, if
claimed prior to receipt of Contracting Officer consent. Include the
total cost claimed for the current and cumulative-to-date periods.
After the total amount claimed, provide summary dollar amounts
disallowed on the contract as of the date of the invoice. Also
include an explanation of the changes in cumulative costs disallowed
by addressing each adjustment in terms of: Voucher number, date,
dollar amount, source, and reason for the adjustment. Disallowed
costs should be identified in unallowable accounts in the
contractor's accounting system.

* * * * *

    Note to paragraph
    (j)--Any costs requiring advance consent by the Contracting
Officer will be considered improper and will be disallowed, if
claimed prior to receipt of Contracting Officer consent. Include the
total cost claimed for the current and cumulative-to-date periods.
After the total amount claimed, provide summary dollar amounts
disallowed on the contract as of the date of the invoice. Also
include an explanation of the changes in cumulative costs disallowed
by addressing each adjustment in terms of: Voucher number, date,
dollar amount, source, and reason for the adjustment. Disallowed
costs should be identified in unallowable accounts in the
contractor's accounting system.

* * * * *

[FR Doc. 2018-27478 Filed 12-19-18; 8:45 am]
 BILLING CODE 6560-50-P