[Federal Register Volume 74, Number 81 (Wednesday, April 29, 2009)]
[Rules and Regulations]
[Pages 19409-19416]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-9847]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 9

[TTB Docket No. 2008-0006; T.D. TTB-76; Re: Notice No. 87]
RIN 1513-AB42


Establishment of the Lake Chelan Viticultural Area (2007R-103P)

AGENCY: Alcohol and Tobacco Tax and Trade Bureau, Treasury.

ACTION: Final rule; Treasury decision.

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SUMMARY: This Treasury decision establishes the 24,040-acre ``Lake 
Chelan'' American viticultural area in Chelan County, Washington. It 
lies within the larger Columbia Valley viticultural area in north-
central Washington. We designate viticultural areas to allow vintners 
to better describe the origin of their wines and to allow consumers to 
better identify wines they may purchase.

DATES: Effective Date: May 29, 2009.

FOR FURTHER INFORMATION CONTACT: Christopher Thiemann, Regulations and 
Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G 
Street, NW., Room 200E, Washington, DC 20220; phone 202-927-8210.

SUPPLEMENTARY INFORMATION: 

[[Page 19410]]

Background on Viticultural Areas

TTB Authority

    Section 105(e) of the Federal Alcohol Administration Act (FAA Act), 
27 U.S.C. 205(e), authorizes the Secretary of the Treasury to prescribe 
regulations for the labeling of wine, distilled spirits, and malt 
beverages. The FAA Act requires that these regulations, among other 
things, prohibit consumer deception and the use of misleading 
statements on labels, and ensure that labels provide the consumer with 
adequate information as to the identity and quality of the product. The 
Alcohol and Tobacco Tax and Trade Bureau (TTB) administers the 
regulations promulgated under the FAA Act.
    Part 4 of the TTB regulations (27 CFR part 4) allows the 
establishment of definitive viticultural areas and the use of their 
names as appellations of origin on wine labels and in wine 
advertisements. Part 9 of the TTB regulations (27 CFR part 9) contains 
the list of approved viticultural areas.

Definition

    Section 4.25(e)(1)(i) of the TTB regulations (27 CFR 4.25(e)(1)(i)) 
defines a viticultural area for American wine as a delimited grape-
growing region distinguishable by geographical features, the boundaries 
of which have been recognized and defined in part 9 of the regulations. 
These designations allow vintners and consumers to attribute a given 
quality, reputation, or other characteristic of a wine made from grapes 
grown in an area to its geographical origin. The establishment of 
viticultural areas allows vintners to describe more accurately the 
origin of their wines to consumers and helps consumers to identify 
wines they may purchase. Establishment of a viticultural area is 
neither an approval nor an endorsement by TTB of the wine produced in 
that area.

Requirements

    Section 4.25(e)(2) of the TTB regulations outlines the procedure 
for proposing an American viticultural area and provides that any 
interested party may petition TTB to establish a grape-growing region 
as a viticultural area. Section 9.3(b) of the TTB regulations requires 
the petition to include--
     Evidence that the proposed viticultural area is locally 
and/or nationally known by the name specified in the petition;
     Historical or current evidence that supports setting the 
boundary of the proposed viticultural area as the petition specifies;
     Evidence relating to the geographical features, such as 
climate, soils, elevation, and physical features, that distinguish the 
proposed viticultural area from surrounding areas;
     A description of the specific boundary of the proposed 
viticultural area, based on features found on United States Geological 
Survey (USGS) maps; and
     A copy of the appropriate USGS map(s) with the proposed 
viticultural area's boundary prominently marked.

Lake Chelan Petition

    Alan J. Busacca, PhD, a geologist licensed in Washington State and 
a nationally certified professional soil scientist with Vinitas 
Vineyard Consultants, submitted a petition on behalf of the Lake Chelan 
Wine Growers Association to establish the 24,040-acre Lake Chelan 
American viticultural area in north-central Washington. Some of the 
petition evidence and documentation provided relies on the previous 
research and writings of Dr. Busacca. Additional petition resources 
include Government-published climatic, topographic, and soils data, as 
well as maps, municipal resources, commercial publications, personal 
correspondence, and anecdotal information.
    The Lake Chelan Valley lies about 112 miles east-northeast of 
Seattle, according to USGS and commercial maps. The petitioner 
explained that the proposed Lake Chelan viticultural area lies entirely 
within the large, established Columbia Valley viticultural area (27 CFR 
9.74). TTB notes that the Lake Chelan region lies to the east of the 
Puget Sound viticultural area (27 CFR 9.151) and to the north of other 
Washington State viticultural areas. The proposed Lake Chelan 
viticultural area neither borders nor includes any portion of any other 
Washington State viticultural area except the Columbia Valley 
viticultural area.
    The petitioner explained that the proposed Lake Chelan viticultural 
area includes the southern and eastern portions of the large body of 
water known as Lake Chelan and its surrounding lands suitable for 
viticulture. According to the petitioner, at the time of the 2006 
petition filing with TTB, the proposed viticultural area included 13 
bonded wineries, 140 acres of vineyards, and another 50 acres to be 
planted to grape vines.
    According to the petitioner, distinguishing features of the 
proposed Lake Chelan viticultural area include its geology, geography, 
soils, and climate as directly influenced by past alpine glacial 
activity of the Cascade region. Lake Chelan Valley is the only valley 
in the Cascade Range in Oregon or Washington that holds a natural lake 
of its size. The climate of the agricultural and viticultural lands 
surrounding the lower (eastern) end of the lake is strongly moderated 
by the thermal effect of the lake on the air temperatures. The glacier 
that formed during the last ice age and traveled from the Cascade crest 
to the eastern end of the modern lake left a defining imprint on the 
landforms of the Lake Chelan Valley. In addition, the petitioner 
claimed that pumice and ash from eruptions of volcanoes in the Cascade 
Range, principally Glacier Peak to the west of the proposed 
viticultural area, formed soils that are ashier and more pumiceous than 
those in any other established viticultural area in Washington State.
    We summarize below the supporting evidence submitted with the 
petition.

Name Evidence

    The ``Chelan'' geographic name derives from the name that Alexander 
Ross, an American fur trader, in about 1824 used to describe the 
``Tsill-anes,'' a native people living along the south shore of Lake 
Chelan, according to ``Chelan County--Thumbnail History,'' an article 
from the Washington State Department of Archeology and Historic 
Preservation, The Online Encyclopedia of Washington State History at 
http://www.historylink.org.
    The ``Lake Chelan'' name appears on the USGS Chelan, Manson, and 
Winesap quadrangle maps. The USGS Chelan map, sections 11 and 12, T27N 
and R23N, identifies an area to the north-northwest of the small town 
of Chelan as the ``Lake Chelan Golf and Country Club.'' The DeLorme 
Washington Atlas and Gazetteer identifies ``Lake Chelan'' on page 83, 
sections A7, B7, and B8. The American Automobile Association map, 
Oregon Washington State Series, identifies ``Lake Chelan'' as a long 
slender lake extending northwest from the North Cascades National Park 
southeast to the Chelan Dam, approximately 2 miles northwest of the 
Columbia River.
    An article entitled ``Chelan and Stehekin, WA,'' dated August 12, 
2006, on http://www.nwsource.com, a northwest travel and outdoors Web 
site, states that Lake Chelan is one of Washington's favorite summer 
recreation areas.

Boundary Evidence

    According to the petitioner and the written boundary description, 
the proposed Lake Chelan viticultural area encompasses the southernmost 
and easternmost 12 miles of the 55-mile-long lake and surrounding 
lands. A bedrock

[[Page 19411]]

ridge, with a pinnacle at a 1,526-foot elevation, divides the 
approximately 1,200-foot elevation of the south Lake Chelan region from 
the 707-foot elevation of the Columbia River, according to USGS maps of 
the area and the petitioner. Lands to the east and southeast of the 
proposed viticultural area are within the Columbia River airshed and 
watershed, and have different climates, geology, and soils.
    The upper 43 miles of Lake Chelan and its shoreline lie outside of 
the proposed viticultural area, according to the written boundary 
description provided in the petition. According to the petitioner, in 
the northern lake region the surrounding Cascade Range provides 
significant downward cold air drainage from peaks to valley floor and 
blocks the sun from the adjacent valley lands. The cold air and shade 
combine with a steep shoreline terrain to create a region unsuitable 
for grape growing. Additionally, the North Cascades National Park 
surrounds the north end of Lake Chelan, and commercial agricultural 
development is prohibited within its borders.
    Lands with viticultural potential in the Lake Chelan Valley area, 
the petitioner states, are generally at or below 2,000 feet in 
elevation. High mountains ridges, beyond the boundary of the proposed 
Lake Chelan viticultural area, rise over 5,000 feet in elevation to the 
north and west and to 3,800 feet to the south, cradling the Lake Chelan 
Valley region on three sides, according to the petitioner and USGS 
maps. The petition explains that these high mountains, which have cold 
climates and forested terrain, are unsuited to viticulture.
History of Viticulture
    According to the Chelan Valley Mirror dated May 1, 1947, Urban 
DeGrassi, a Jesuit priest, spent several years in the Lake Chelan 
region teaching Native Americans about agriculture. Based on Father 
DeGrassi's teachings, in 1881, John and Peter Wapato, Native Americans 
of Chelan Valley, started planting fruit eventually including grapes 
and cherries.
    According to an article in the August 6, 1891, edition of the 
Chelan Falls Leader, Louis Conti, an Italian immigrant, owned a 60-acre 
vineyard in the Lake Chelan area. The article stated that a colony of 
Italian immigrants, living on the sunnier south side of the lake, 
planted grape vines on their claimed lands.
    Two 1905 photographs from the Chelan County Historical Society show 
grapes growing in the Lake Chelan area. A photo of grapes on the vine 
is labeled ``Black Hamburg Grapes--Lake Chelan.'' The petitioner 
explains that the common name for those grapes is Black Muscat. The 
other photo, which shows a little boy sitting on the ground beside 
grapes hanging heavily from a vine, is labeled ``Lake Chelan Grapes.''
    The Faletto family continued growing grapes into the early 1900's, 
according to an e-mail dated November 22, 2005, from family member Rich 
Faletto. Mr. Faletto stated of his grandfather, ``Old John was the 
vintner and winery operator in the valley, producing great wine from 
[grapevines] brought to the area by a group of Italians.''
    The Chelan and Manson areas, within the proposed viticultural area, 
comprised 154 acres of producing vineyards, according to a November 17, 
1949, newspaper article written by Harry R. McMullen. According to the 
article, that year grape growers received 2 cents a pound, or $40 a 
ton, from the Welch Company.
Modern Viticulture
    The petitioner states that in 1998, Steve Kludt and Bob Christopher 
replanted apple orchards to grapes within the proposed Lake Chelan 
viticultural area. Also, in 2000 the Kludt family opened the first 
bonded winery in the area and in 2001 started selling wine. Vineyard 
production in the Lake Chelan region increased from over 90 acres in 
2004 to 140 acres by 2006. According to the petitioner, 13 bonded 
wineries operated in the Lake Chelan area as of the 2006 petition 
submission date.
Proposed Boundary Line
    The petitioner explains that the proposed boundary line uses a 
2,000-foot elevation line and USGS map section lines in conjunction 
with roads, mountain peaks, and other map markings in providing a 
clear, simple perimeter. The proposed Lake Chelan viticultural area 
boundary line includes lands adjacent to the southernmost 12 miles of 
the lake, according to the petition.
    In determining the proposed boundary line, the petitioner included 
in the proposed viticultural area only the valley areas with a 
significant ``lake effect'' climate. The lake affects surrounding 
lands, the petitioner explains, by favorably moderating the climate, 
increasing the length of the growing season, and reducing the frequency 
of damaging or killing vine freezes. The petitioner states that the 
proposed boundary line excludes from the proposed viticultural area the 
surrounding mountainous areas and the northern 43 miles of the lake and 
adjacent lands, all unsuitable for viticulture.
    TTB notes that the northeast portion of the boundary of the 
proposed Lake Chelan viticultural area coincides with 17 miles of the 
2,000-foot boundary line of the Columbia Valley viticultural area. When 
the petition was first submitted to TTB, the proposed northeast 
boundary line incorporated a series of map section lines and 90-degree 
turns. After discussions with TTB, the petitioner modified the 
northeast portion of the boundary line to coincide with the boundary 
line of the Columbia Valley viticultural area.
    The petitioner provides an aerial photo of agriculture within and 
immediately outside of the proposed Lake Chelan viticultural area. The 
planted orchards and vineyards are clustered on the low, flat 
elevations adjoining the northern and southern shorelines of the lake. 
The petitioner explains that viticulture fails to thrive outside the 
proposed boundary line because of high elevations, steep terrain, cold 
temperatures, and the absence of a moderating lake-effect climate.
    Other boundary line considerations include properties of the soil, 
the influences of the watershed and airshed, the elevations of the 
surrounding mountains, and the steepness of the terrain.

Distinguishing Features

Cascade Range Geographic Province
    The proposed Lake Chelan viticultural area, a part of the Cascade 
Range geographic province, the petitioner explains, includes 
distinctive geology, geography, soils, and climate that contrast to 
those of the surrounding areas. The geology, the petitioner notes, 
includes the advance of Cascade alpine glaciers that occurred 14,000 to 
18,000 years ago.
    The Cascade Mountain Range runs north-south through Washington and 
Oregon and divides western and eastern Washington, the petitioner 
explains. The range creates, to the east, a rain shadow that limits 
precipitation in the Lake Chelan Valley and on the Columbia Plateau in 
eastern Washington. The range protects areas to its east from Arctic 
and Pacific winter storms and further moderates climate.
    Lake Chelan Valley is the only valley that the Cascade glacier 
created in Washington and Oregon and that holds a large natural lake of 
Lake Chelan's size. The lake is the third deepest lake in the U.S., the 
petitioner emphasizes. The soils in the valley formed in glacial 
sediments layered below the more recent windblown deposition of

[[Page 19412]]

volcanic pumice and ash. Also, the large glacial lake acts as a heat 
reservoir to produce a unique climate of consistently moderated 
temperatures.
Columbia Plateau Geographic Province
    Most Washington vineyards, the petitioner states, lie on the 
Columbia Plateau geographic province, the features of which contrast 
significantly in several important ways from the Lake Chelan Valley in 
the Cascade Range geographic province. The distinguishing features of 
the Columbia Plateau include the bedrock of Tertiary-age basaltic 
lavas, sediments derived from cataclysmic outburst floods of Lake 
Missoula, and bench-and-riser landforms that the recurrent Missoula 
Floods created through erosion of the lavas. The topography varies from 
near moonscapes to megasized gravel bars and slackwater terraces.
    The petitioner states that another distinguishing feature of the 
Columbia Plateau is the predominant east-west trending valley-and-ridge 
system that affects the elevation, slope, aspect, heat accumulation, 
winds, and air drainage of the plateau. Also, plateau elevations vary 
from 460 feet at the Wahluke Slope viticultural area (27 CFR 9.192) to 
970 feet at the Walla Walla Valley viticultural area (27 CFR 9.91), a 
topography with a significantly lower elevation than that of the Lake 
Chelan area of the Cascade Range.
    The separate climates of the Columbia Plateau viticultural areas 
share low winter temperatures with complete vine dormancy and 
significant fall daytime and nighttime temperature variations. The 
viticultural areas of the Columbia Plateau lie within the rain shadow 
of the Cascade Range, and have a drier climate as compared to western 
Washington. The combination of distinguishing features in the 
viticultural areas on the Columbia Plateau, the petitioner concludes, 
creates a unique annual growing season that contrasts with the Lake 
Chelan Valley region in the Cascade Range geographic province.
Geology
    The petitioner explains that the most recent ice-age events of the 
Earth, 14,000 to 18,000 years ago, played significant roles in creating 
the differing geological records within the Cascade Range and the 
Columbia Plateau.
    The region encompassing the proposed Lake Chelan viticultural area, 
according to the petitioner, includes camel-backed bedrock landforms 
that the Cascade Range alpine glaciers eroded into the dominantly 
granitic bedrock of the Lake Chelan area, lake sediments that the 
alpine glaciers deposited, and bedrock that consists of Cretaceous-age 
igneous and older metamorphic rocks. The glaciers crushed bedrock in 
the Lake Chelan region, creating glacial till and outwash sediments 
that have coarse sandy textures and that are rich in biotite mica. The 
glacial lake sediments, silty to clayey in texture, include substantive 
amounts of quartz and mica. As a result, the soil's deep rooting zone 
for grape vines has distinguishable textures, mineralogy, and 
nutrients.
    The petitioner provides a geologic map of the proposed Lake Chelan 
viticultural area from the USGS Miscellaneous Investigations Series Map 
I-1661, Geologic Map of the Chelan, 30-Minute by 60-Minute Quadrangle, 
Washington, accessed online on June 26, 2006. The map identifies the 
Cretaceous-age bedrock and the Quaternary-age surface sediments in the 
Lake Chelan Valley area. The Cretaceous-age units consist of dark, 
intrusive igneous tonalites, the petitioner explains. TTB notes that 
tonalite is an igneous plutonic (intrusive) rock having greater than 20 
percent quartz and quartz diorite with 5 to 20 percent quartz. Also, 
the Quaternary-age units consist of glacial moraines, terraces, lake 
deposits, and postglacial landslides and alluvial sediments.
    According to the petitioner, the Columbia Plateau geologic history, 
in contrast, stems from the force of a lobe of the western Canadian ice 
sheet that blocked the Clark Fork River in Idaho and created the huge 
glacial Lake Missoula in Montana. When the glacial ice dams repeatedly 
failed, the largest floods of water ever documented on Earth occurred. 
The floods overwhelmed the Columbia River and flowed across eastern 
Washington, eroding channels in the basalt bedrock and depositing 
gravel bars in the main basins and fine sandy and silty sediments in 
the river valleys.
Geography
    Elevations vary from approximately 1,100 feet at lake level to 
3,276 feet at an unnamed peak in the northwest portion of the proposed 
Lake Chelan viticultural area, 1.8 miles northwest of Lake Chelan State 
Park on the USGS Manson quadrangle map. The lower elevations, which 
have gently rising slopes, are along the southern and eastern shoreline 
of Lake Chelan, as shown on the USGS maps of the region. The petitioner 
explains that the lower lakeside elevations are known for successful 
fruit growing. The higher elevations enveloping the Lake Chelan Valley 
region generally correlate with steep terrain, as shown on the USGS 
maps of the proposed viticultural area.
    According to the petitioner, when the Cascade alpine glaciers 
descended from the mountain crests to lower elevations, they created 
the distinctive U-shaped Lake Chelan Valley topography, including the 
lake depression. The term ``camel-backed'' describes the landforms of 
the Lake Chelan Valley at low elevations and adjacent surrounding 
mountains. The Cascade alpine glaciers created other valleys in the 
region with similar landscapes, including camel-backed topography, and 
layers of glacial sediment, but not lake basins. Thus, only Lake Chelan 
Valley, in contrast to the other regional glacial valleys, has a 
climate-moderating lake effect.
Climate
    According to local growers and temperature statistics, a lake 
effect moderates air temperature extremes in both summer and winter in 
the proposed Lake Chelan viticultural area. The combination of 
moderating summer high and winter low temperatures creates a suitable 
environment for both viticulture and tree fruit agriculture. According 
to the petitioner, the strong lake effect moderates the air 
temperatures of planted areas adjacent north and south of the eastern 
part of the lake. In those areas, the waters of Lake Chelan create a 
heat reservoir that absorbs warming solar energy in summer and then 
reradiates heat energy into cold air in winter. The table below 
compares the climate in the areas along Lake Chelan to that in similar 
areas nearby but without lakes.

                 Climatic Indices for Wine Grapes for Three Sites in Washington State, 1994-2003
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                                                                   Cool climate
                                                                    viticulture   Number of days  Number of days
                Area *                 Distance from Lake Chelan    suitability     a year <32      a year >95
                                                (miles)              index **         [deg]F          [deg]F
                                                                      (days)
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Lake Chelan..........................  0........................             244            89.6             7.1

[[Page 19413]]

 
Methow Valley........................  30, north................             176           147.9            13.6
Wenatchee Valley.....................  30, south................             230           102.3            14.1
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* Based on data from the National Climate Data Center.
** Number of days between <29 [deg]F in spring and the first temperature <29 [deg]F in fall.

    The petitioner uses a cool-climate viticultural suitability index 
(CCVSI) formulated at Cornell University as an analytical tool for the 
Lake Chelan Valley climate. The CCVSI emphasizes the impact of 
temperature moderation on viticulture. The petitioner explains that the 
CCVSI compiles the sum of the days from the last occurrence of 29 
degrees Fahrenheit or lower in spring until the first occurrence of 29 
degrees Fahrenheit or lower in fall. The larger total numbers, in days, 
generally correlate to the better viticultural regions.
    For the Lake Chelan Valley region, the CCVSI 10-year average of 244 
days is significantly higher than the glacially formed Methow Valley in 
the Cascade Range to the north and higher than the Wanatchee Valley to 
the south.
    In another measure of the lake effect on the proposed Lake Chelan 
viticultural area, the petitioner uses the annual average number of 
days with temperatures of 32 degrees Fahrenheit or lower in winter and 
95 degrees Fahrenheit or higher in summer. The petitioner compares the 
climates in Lake Chelan Valley, Methow Valley, and Wenatchee Valley 
using this method. All three valleys are located within 60 miles of 
each other, were created partially or wholly by Cascade alpine 
glaciers, and have other similar geographic features. Lake Chelan 
Valley averages 7 days a year above 95 degrees Fahrenheit, and Methow 
Valley and Wenatchee Valley average 14 days a year, according to data 
from the National Climate Data Center included with the petition. Fewer 
hot days in the Lake Chelan Valley correlate with better fruit quality, 
because temperatures above 95 degrees shut down most photosynthesis in 
grapes, according to the petitioner. The Lake Chelan Valley averages 
only 90 days a year colder than 32 degrees Fahrenheit in winter, while 
the Methow Valley averages 148 days and the Wenatchee Valley averages 
102 days.
    Northwest of the proposed viticultural area, temperatures are too 
low for viticulture because of cold air drainage from the high Cascades 
and severe shading from steep mountainsides close to the lake. To the 
east and northeast of the proposed viticultural area, a ridge holds the 
lake-affected air masses in the lake basin. That ridge is used as the 
proposed eastern boundary.
    To further demonstrate the moderating lake effect, the petitioner 
provides evidence concerning vine-killing freezes which, according to 
the petitioner, occur less frequently in the proposed Lake Chelan 
viticultural area than in other viticultural areas in eastern 
Washington State. Winemaker Charles Ray Sandidge III, in an October 2, 
2006, e-mail to the petitioner, states that he conducted a study of 
weather data in the period 1934-84 in the regions of Wahluke Slope, 
Walla Walla, Chelan, East Wenatchee, and Roosevelt. Results, based on 
cold temperature readings, indicated that the Lake Chelan area averaged 
a killing freeze once in 17 years, while the other Washington 
viticultural areas studied averaged 6 to 8 years between vine-killing 
freezes.
    Mr. Sandidge states that Lake Chelan averages a heavy crop loss and 
a light vine loss every 17 years. Also, fall temperatures cool more 
rapidly and rains arrive about a week earlier than in areas to the 
south. Mr. Sandidge theorizes that while the Lake Chelan area 
experiences milder winter temperatures, the later spring bud break 
relates to the close proximity of the proposed viticultural area to the 
surrounding mountains.
Soils
    According to the petitioner, the soils of the Lake Chelan Valley 
include layers of glacial debris, sediment from normal stream erosion 
and deposition after the glacial age, and airborne volcanic and 
nonvolcanic sediments. The lower parts of the deeper soils, 20 to 60 
inches below the surface, predominantly formed in glacial sediments. 
The upper part of the soils formed in a mixture of large amounts of 
airborne volcanic pumice and ash from Glacier Peak and very small 
amounts of loess (wind-transported material) overlying the glacial 
sediments. Thus, the soils downwind from Glacier Peak and the north 
Cascades, including the soils in the proposed Lake Chelan viticultural 
area, are rich, about 3 to 40 percent by volume, in volcanic pumice and 
ash from a massive eruption of the Glacier Peak volcano about 12,000 
years ago.
    The petitioner explains that bedrock in the proposed Lake Chelan 
viticultural area consists of Cretaceous-age granitic rocks and older 
metamorphic rocks, including amphibolite, schist, and biotite gneiss. 
Glaciers shattered and crushed the Cascade crystalline bedrock, 
creating glacial till and glacial outwash sediments that include 
biotite mica-rich cobbly, bouldery, gravelly, and coarse sandy 
materials.
    The soils in Lake Chelan Valley that are close to the surface, 
according to the petitioner, include sand- and fine gravel-sized pumice 
from the volcanic eruption of Glacier Peak to the northwest. Soils that 
have significant amounts of volcanic ash and pumice or clays weathered 
from glass have an unusually high available water capacity. The 
petitioner believes that the high content of volcanic material in the 
soils is a significant contributory factor to the successful regional 
viticulture and pomology over the past 100 years.
    The United States Department of Agriculture, National Cooperative 
Soil Survey, has identified 11 soil series within the proposed Lake 
Chelan viticultural area. Eight of these series consist of soils 
derived from volcanic glass, including ashy, cindery, pumiceous, 
glassy, vitrandic, medial, and amorphic soils, the petitioner explains. 
Only the Margerum and Dragoon series are silt loam, which is common on 
the Columbia Plateau. The information in the soil table below is from 
the Official Soil Series Descriptions accessed on October 18, 2006, at 
the U.S. Department of Agriculture Web site, at: http://soils.usda.gov/technical/classification/osd/index.html.

[[Page 19414]]



----------------------------------------------------------------------------------------------------------------
           Soil series                  Soil order                  Excerpt from official description
----------------------------------------------------------------------------------------------------------------
Margerum.........................  Mollisols...........  Considerable pumice.
Chelan...........................  Mollisols...........  Volcanic ash and pumice.
Springdale.......................  Inceptisols.........  Volcanic ash in the upper part.
Kartar...........................  Inceptisols.........  Volcanic ash in the surface.
Entiat...........................  Mollisols...........  Volcanic ash.
Dinkelman........................  Mollisols...........  A component of volcanic ash.
Tyee.............................  Mollisols...........  Volcanic ash.
Swakane..........................  Mollisols...........  Volcanic ash in the upper part.
Psuga............................  Spodosols...........  Volcanic ash.
Mansonia.........................  Mollisols...........  Volcanic ash and pumice.
Dragoon..........................  Mollisols...........  Volcanic ash.
----------------------------------------------------------------------------------------------------------------

    The petitioner explains that many agricultural soils on the 
Columbia Plateau are silt loam throughout the soil profile, and are 
unlike those with a high content of volcanic pumice and ash in the Lake 
Chelan area and Cascade Range. Also, the mineralogy of the Columbia 
Plateau basalt sediments, deposited as alluvium derived from basaltic 
lavas, includes neither quartz nor mica, which are commonly found in 
the sediments in the Lake Chelan Valley area.
    A sampling of soils taken by the petitioner across the Columbia 
Plateau shows that the dominant parent materials are loess and dunes 
and have an average content of only 12 percent volcanic glass. This is 
substantially different from the high glass content of soils in the 
proposed viticultural area. The Pasco and Umatilla Basins, to the south 
of the proposed viticultural area, were the origins of most of the 
loess throughout the Columbia Plateau. Over the millennia the Lake 
Chelan Valley, outside the path of most of the wind transporting the 
loess, has received only minor deposits of loess. The petitioner 
asserts that the differences in soil between the Lake Chelan Valley and 
the Columbia Plateau impact infiltration and runoff of water, aeration 
of the soils, root penetration, and available water capacity.

Notice of Proposed Rulemaking and Comments Received

    TTB published Notice No. 87 regarding the proposed Lake Chelan 
viticultural area in the Federal Register (73 FR 46836) on August 12, 
2008. In that notice, TTB invited comments by October 14, 2008, from 
all interested persons. We solicited comments on the sufficiency and 
accuracy of the name, boundary, climatic, and other required 
information submitted in support of the petition. We also solicited 
comments on the proposal to identify ``Lake Chelan'' and ``Chelan'' as 
terms of viticultural significance. We expressed particular interest in 
receiving comments on whether the proposed area name, Lake Chelan, 
would result in a conflict with currently used brand names. We received 
four comments from individuals in response to that notice. All four 
comments supported the establishment of the Lake Chelan viticultural 
area as proposed. Further, TTB is not aware of any conflict with 
existing brand labels that would occur if the viticultural area is 
established as proposed.

TTB Determination

    When the Columbia Valley viticultural area was established in 1984, 
it was recognized as having the following distinguishing geographical 
features: (1) A growing season of over 150 days per year, with a high 
of 204 days per year; (2) a total degree day average of over 2,000; (3) 
annual rainfall of 15 inches or less; and (4) a topography described as 
a broadly undulating or rolling surface, cut by rivers and broken by 
long sloping basaltic uplifts extending generally east-west. Although 
the proposed Lake Chelan viticultural area shares some of these 
characteristics, due to lake effect temperature moderation its growing 
season is significantly longer at an average of 244 days annually and 
its lakeside topography is significantly different. TTB believes these 
differences justify recognition of Lake Chelan as a distinct 
viticultural area within the Columbia Valley viticultural area.
    Accordingly, after careful review of the petition and the comments 
received, TTB finds that the evidence submitted supports the 
establishment of the proposed viticultural area. Therefore, under the 
authority of the Federal Alcohol Administration Act and part 4 of our 
regulations, we establish the ``Lake Chelan'' viticultural area in 
Chelan County, Washington, effective 30 days from the publication date 
of this document.

Boundary Description

    See the narrative boundary description of the viticultural area in 
the regulatory text published at the end of this document.

Maps

    The maps for determining the boundary of the viticultural area are 
listed below in the regulatory text.

Impact on Current Wine Labels

    Part 4 of the TTB regulations prohibits any label reference on a 
wine that indicates or implies an origin other than the wine's true 
place of origin. With the establishment of this viticultural area and 
its inclusion in part 9 of the TTB regulations, its name, ``Lake 
Chelan,'' is recognized under 27 CFR 4.39(i)(3) as a name of 
viticultural significance. The text of the new regulation clarifies 
this point.
    In addition, based on the evidence submitted, we believe that 
``Chelan'' standing alone is locally and/or nationally known as 
referring to the region in Washington State encompassed by the proposed 
``Lake Chelan'' viticultural area, and we therefore believe that 
consumers and vintners could reasonably attribute the quality, 
reputation, or other characteristic of wine made from grapes grown in 
the proposed ``Lake Chelan'' viticultural area to the name ``Chelan'' 
itself. Therefore, the part 9 regulatory text set forth in this 
document specifies both ``Lake Chelan'' and ``Chelan'' as terms of 
viticultural significance for purposes of part 4 of the TTB 
regulations.
    Once this final rule becomes effective, wine bottlers using ``Lake 
Chelan'' or ``Chelan'' in a brand name, including a trademark, or in 
another label reference as to the origin of the wine, will have to 
ensure that the product is eligible to use the viticultural area's full 
name as an appellation of origin.
    For a wine to be labeled with a viticultural area name or with a 
brand name that includes a viticultural area name or other term 
identified as being viticulturally significant in part 9 of the TTB 
regulations, at least 85 percent of the wine must be derived from 
grapes grown within the area represented by

[[Page 19415]]

that name or other term, and the wine must meet the other conditions 
listed in 27 CFR 4.25(e)(3). If the wine is not eligible for labeling 
with the viticultural area name or other viticulturally significant 
term and that name or term appears in the brand name, then the label is 
not in compliance and the bottler must change the brand name and obtain 
approval of a new label. Similarly, if the viticultural area name or 
other viticulturally significant term appears in another reference on 
the label in a misleading manner, the bottler would have to obtain 
approval of a new label. Accordingly, if a previously approved label 
uses the name ``Lake Chelan'' or ``Chelan'' for a wine that does not 
meet the 85 percent standard, the previously approved label will be 
subject to revocation, upon the effective date of the establishment of 
the Lake Chelan viticultural area.
    Different rules apply if a wine has a brand name containing a 
viticultural area name or other term of viticultural significance that 
was used as a brand name on a label approved before July 7, 1986. See 
27 CFR 4.39(i)(2) for details.

Regulatory Flexibility Act

    We certify that this regulation will not have a significant 
economic impact on a substantial number of small entities. This 
regulation imposes no new reporting, recordkeeping, or other 
administrative requirement. Any benefit derived from the use of a 
viticultural area name is the result of a proprietor's efforts and 
consumer acceptance of wines from that area. Therefore, no regulatory 
flexibility analysis is required.

Executive Order 12866

    This rule is not a significant regulatory action as defined by 
Executive Order 12866. Therefore, it requires no regulatory assessment.

Drafting Information

    Christopher Thiemann of the Regulations and Rulings Division 
drafted this notice.

List of Subjects in 27 CFR Part 9

    Wine.

The Regulatory Amendment

0
For the reasons discussed in the preamble, we amend title 27 CFR, 
chapter I, part 9, as follows:

PART 9--AMERICAN VITICULTURAL AREAS

0
1. The authority citation for part 9 continues to read as follows:

    Authority: 27 U.S.C. 205.

Subpart C--Approved American Viticultural Areas

0
2. Subpart C is amended by adding Sec.  9.215 to read as follows:


Sec.  9.215  Lake Chelan.

    (a) Name. The name of the viticultural area described in this 
section is ``Lake Chelan''. For purposes of part 4 of this chapter, 
``Lake Chelan'' and ``Chelan'' are terms of viticultural significance.
    (b) Approved maps. The five United States Geological Survey 
1:24,000 scale topographic maps used to determine the boundary of the 
Lake Chelan viticultural area are titled:
    (1) Manson Quadrangle, Washington--Chelan Co., 1968, photorevised 
1987;
    (2) Cooper Ridge Quadrangle--Washington, 1968, photorevised 1987;
    (3) Chelan Quadrangle--Washington, 1968, photorevised 1987;
    (4) Chelan Falls Quadrangle--Washington, 1968, photorevised 1981; 
and
    (5) Winesap Quadrangle--Washington, 1968, photorevised 1987.
    (c) Boundary. The Lake Chelan viticultural area is located in 
Chelan County, Washington. The boundary of the Lake Chelan viticultural 
area is as described below:
    (1) The beginning point is on the Manson map at the intersection of 
the east shore of Lake Chelan and the north boundary line of section 
15, T28N/R21E, north of Greens Landing. From the beginning point, 
proceed straight east 1.6 miles along the northern boundary line of 
sections 15 and 4 to its intersection with the 2,000-foot elevation 
line, T28N/R21E; then
    (2) Follow the meandering 2,000-foot elevation line generally 
southeast onto the Cooper Ridge map, crossing Purtterman Gulch; 
continue southeast onto the Chelan map and follow the meandering 2,000-
foot elevation line onto the Chelan Falls map, over the Cagle Gulch, 
and then return to the Chelan map; continue generally southeast onto 
the Chelan Falls map and follow the 2,000-foot elevation line to 
section 8, T27N/R23E, to a point 0.3 mile due north of BM 1404 at the 
intersection of U.S. Route 97 and State Route 151, T27N/R23E; then
    (3) Proceed in a straight south-southeast line 1.35 miles to its 
intersection with the section 20 north boundary line and the 1,000-foot 
elevation line, T27N/R23E; then
    (4) Proceed south-southwest along the 1,000-foot contour line to 
its intersection with the section 20 south boundary line, south of 
Chelan Station and immediately west of State Route 151, T27N/R23E; then
    (5) Proceed straight west along the south boundary line of sections 
20 and 19 for 0.75 mile to its intersection with the light-duty Gorge 
Road, as identified on the adjoining Chelan map, T27N/R23E; then
    (6) Proceed northwest along Gorge Road, crossing onto the Chelan 
map, to the southeast corner of section 13, T27N/R22E; then
    (7) Proceed straight west along the south boundary line of sections 
13, 14, 15, 16, 17, and 18, and crossing onto the Winesap map in 
section 18, to its intersection with the R21E/R22E line, T27N; then
    (8) Proceed straight north along the R21E/R22E line to its 
intersection with the south boundary line of section 13 and the 2,440-
foot contour line, T27N/R21E; then
    (9) Proceed straight west to the southwest corner of section 13, 
T27N/R21E; then
    (10) Proceed straight north along the section 14 east boundary line 
to the northeast corner of section 14, T27N/R21E; then
    (11) Proceed straight west along the section 14 north boundary line 
to the northwest corner of section 14, T27N/R21E; then
    (12) Proceed straight north along the east boundary line of section 
10 for 0.3 mile to its intersection with the 2,520-foot contour line 
and a 90-degree turn in the Wenatchee National Forest (WNF) boundary 
line, T27N/R21E; then
    (13) Proceed straight west along the WNF boundary line 0.3 mile to 
its intersection with the 2,600-foot contour line and a 90-degree turn 
in the WNF boundary line, T27N/R21E; then
    (14) Proceed straight south along the WNF boundary line 0.3 mile to 
its intersection with the south boundary line of section 10, T27N/R21E; 
then
    (15) Proceed straight west along the south boundary lines of 
sections 10 and 9 to the southeast corner of section 8, T27N/R21E; then
    (16) Proceed straight north along the east boundary line of section 
8 to the northeast corner of section 8, T27N/R21E; then
    (17) Proceed straight west along the north boundary line of section 
8 to the northwest corner of section 8, T27N/R21E; then
    (18) Proceed generally north along the east boundary line of 
section 6, crossing onto the Manson map, and continue along the east 
boundary lines of sections 31 and 30, to the northeast corner of 
section 30, T28N/R21E; then
    (19) Proceed straight east along the north boundary lines of 
sections 29 and 28 to the intersection with the east shoreline of Lake 
Chelan; and

[[Page 19416]]

    (20) Proceed generally northwest and northeast along the east 
shoreline of Lake Chelan to the point of beginning.

    Signed: February 24, 2009.
John J. Manfreda,
Administrator.
    Approved: March 26, 2009.
Timothy E. Skud,
Deputy Assistant Secretary, Tax, Trade, and Tariff Policy.
[FR Doc. E9-9847 Filed 4-28-09; 8:45 am]
BILLING CODE 4810-31-P