[Federal Register Volume 76, Number 240 (Wednesday, December 14, 2011)]
[Rules and Regulations]
[Pages 77696-77699]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-32017]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 9

[Docket No. TTB-2011-0005; T.D. TTB-99; Ref: Notice No. 118]
RIN 1513-AB80


Establishment of the Naches Heights Viticultural Area

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

ACTION: Final rule; Treasury Decision.

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SUMMARY: This final rule establishes the 13,254-acre ``Naches Heights'' 
viticultural area in Yakima County, Washington. TTB designates 
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: January 13, 2012.

FOR FURTHER INFORMATION CONTACT: Karen A. Thornton, Regulations and 
Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G 
Street NW., Washington, DC 20220; telephone (202) 453-1039, ext. 175.

SUPPLEMENTARY INFORMATION:

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 should, 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) sets 
forth standards for the preparation and submission of petitions for the 
establishment or modification of American viticultural areas and lists 
the approved American 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 having distinguishing features as described in part 9 of 
the regulations and a name and delineated boundary as established 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 
geographic 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 9.12 (27 CFR 9.12) of the TTB 
regulations prescribes standards for petitions for the establishment or 
modification of American viticultural areas. Such petitions must 
include the following:
     Evidence that the area within the proposed viticultural 
area boundary is nationally or locally known by the viticultural area 
name specified in the petition;
     An explanation of the basis for defining the boundary of 
the proposed viticultural area;
     A narrative description of the features of the proposed 
viticultural area that affect viticulture, such as climate, geology, 
soils, physical features, and elevation, that make it distinctive and 
distinguish it from adjacent areas outside the proposed viticultural 
area boundary;
     A copy of the appropriate United States Geological Survey 
(USGS) map(s) showing the location of the proposed viticultural area, 
with the boundary of the proposed viticultural area clearly drawn 
thereon; and
     A detailed narrative description of the proposed 
viticultural area boundary based on USGS map markings.

Petition for the Naches Heights Viticultural Area

    TTB received a petition from R. Paul Beveridge, owner of Wilridge 
Winery and Vineyard, to establish the ``Naches Heights'' American 
viticultural area in the State of Washington. The proposed Naches 
Heights viticultural area is located entirely within the larger 
Columbia Valley viticultural area (27 CFR 9.74) of Washington and 
Oregon. The city of Yakima lies to the southeast of the proposed 
viticultural area in a valley at lower elevations.
    According to the petition, the proposed Naches Heights viticultural 
area encompasses 13,254 acres and contains 105 acres of commercial 
vineyards either producing or expecting to produce wine grapes in the 
foreseeable future.

Name Evidence

    The ``Naches Heights'' name applies to an elevated plateau area in 
Yakima County, Washington, according to the petition and USGS maps. The 
USGS topographical maps of Naches, Selah, Yakima West, and Wiley City 
are used in the written boundary description in the petition to define 
the boundary of the proposed viticultural area. The area between the 
Naches River and Cowiche Creek is identified as ``Naches Heights'' on 
the USGS maps as well as on a public lands map (Yakima Public Lands 
Quadrangle map, 2001, Washington State Department of Natural 
Resources), according to the petition.
    TTB notes that a search of the USGS Geographical Names Information 
System (GNIS) describes Naches Heights as a summit in Yakima County, 
Washington. Also, a general Internet search for ``Naches Heights'' 
produced many hits relating to the geographical region in which the 
proposed viticultural area falls.
    The petition provided evidence of local usage of the name ``Naches 
Heights,'' including listings for the ``Naches Heights Community 
Center'' and the ``Little Store on Naches Heights'' in The 
DexOnline.com, Qwest, 2008 Yakima Valley telephone

[[Page 77697]]

directory. The petition also included multiple articles from the Yakima 
Herald-Republic referring to ``Naches Heights,'' including an October 
22, 2008, obituary of Albert Robert Couchman, who had worked in 
orchards in Naches Heights; an October 24, 2008, article about a cross-
country competition entitled ``Local Report: GNAC's best heading to 
Naches Heights''; and an October 26, 2008, article entitled ``Naches 
Heights: Senior Marcie Mullen turned in Central Washington University's 
top performance in Saturday's GNAC cross country championship * * *.'' 
In addition, the petition included a 1990 Cowiche Canyon brochure 
issued by the Bureau of Land Management's Spokane District that 
contained a drawing showing the Naches Heights geographical area, with 
Cowiche Canyon to the immediate west at lower elevations.

Boundary Evidence

    According to USGS maps submitted with the petition, the Naches 
Heights plateau landform is surrounded by lower elevation valleys and 
the lower Tieton River to the west, the Naches River to the north and 
east, and Cowiche Creek to the south and west. The man-made Congdon 
(Schuler) Canal is located along a portion of the proposed eastern 
boundary line, closely following the 1,300-foot elevation line. TTB 
notes that these landforms are distinguishable on both the aerial 
photographs and the USGS maps submitted with the petition.

Comparison of the Proposed Naches Heights Viticultural Area to the 
Existing Columbia Valley Viticultural Area

    The proposed Naches Heights viticultural area lies entirely within, 
and is 0.001 percent the size of, the Columbia Valley viticultural 
area. The 11.6 million acre Columbia Valley viticultural area was 
established by T.D. ATF-190, published in the Federal Register (49 FR 
44895) on November 13, 1984. It was described as a large, treeless 
basin surrounding the Yakima, Snake, and Columbia Rivers in portions of 
Washington and Oregon. The topography of the Columbia Valley 
viticultural area was described as a rolling terrain, cut by rivers and 
broken by long, sloping, basaltic, east-west uplifts. In addition, T.D. 
ATF-190 stated that the Columbia Valley viticultural area is dominated 
by major rivers and has a long, dry growing season. The Naches Heights 
petition notes that the ancient Missoula Floods carved much of the 
basin geography within the Columbia Valley AVA.
    The proposed viticultural area is a single, elevated Tieton 
andesite plateau landform that ends in andesite cliffs that descend 
into the valleys surrounding the plateau. Although this landform 
generally shares a similar climate, it is geographically and 
geologically distinguishable from the surrounding portions of the 
Columbia Valley viticultural area, according to the petition. The 
relatively flat terrain of the plateau gently increases in elevation 
over the 11 miles from southeast to northwest, as shown on the USGS 
maps, and the entire plateau is elevated over the surrounding valleys. 
Unlike the rest of the Columbia Valley, no major rivers cross the 
plateau landscape, although the proposed viticultural area contains 
several intermittent streams and small ponds.

Distinguishing Features

    The petition states that geology, geography, and soils distinguish 
the proposed viticultural area from the surrounding areas.
Geology
    The petition states that approximately one million years ago, the 
termination of andesite flow from the Cascade Mountains down the valley 
of the Tieton River formed the Naches Heights plateau. The proposed 
Naches Heights viticultural area is located on, and encompasses, a 
geological formation of Tieton andesite, a volcanic rock.
    According to the petition, in contrast to the Naches Heights 
plateau, there are alluvial deposits, including those that are terraced 
and older, to the north, east, and south of the proposed viticultural 
area. To the west of the area are alluvial deposits and Grande Ronde 
Basalt, Ringold Formation gravels, the Ellensburg Formation, and the 
Cascade Mountains.
Geography
    The petition states that the proposed Naches Heights viticultural 
area is a plateau that terminates in cliffs of andesite to the north, 
east, and south. The andesite cliffs distinguish the proposed 
viticultural area from the Naches River Valley, the Cowiche Creek 
Valley, and the nearby Yakima River Valley. The USGS maps show that the 
Naches Heights plateau is elevated in comparison to the surrounding 
river and creek valleys. Aerial photos submitted with the petition also 
show the Naches Heights plateau landform and the cliffs that surround 
it in contrast with the surrounding lower elevation valleys.
    On the far west side of the proposed viticultural area, the 
andesite cliffs are subsumed by the foothills of the Cascade Mountains, 
according to the petition and the USGS maps. Although not distinguished 
by steep cliffs, the proposed western boundary line marks the end of 
andesite rocks and the beginning of the Cascade Mountains foothills, as 
shown in an aerial photo submitted with the petition. Elevations 
gradually rise heading west and northwest of the Naches Heights into 
the Cascade Mountains and the 3,578-foot Bethel Ridge. The high 
mountainous elevations to the west create a rain shadow effect that 
protects the Naches Heights plateau from Pacific winter storms.
    Elevations on the Naches Heights and along the Tieton andesite 
cliffs also distinguish the plateau from the surrounding regions, 
according the petition. The lowest elevations of the proposed 
viticultural area are approximately 1,200 feet, which is at the tip of 
the andesite flow at the far eastern edge of the proposed viticultural 
area. From this point, the cliffs rise to 1,400 feet, according to the 
USGS maps. The highest elevation of the plateau, located near the far 
western end of the proposed viticultural area, is approximately 2,100 
feet, at which point the cliffs drop immediately to 1,600 feet. The 
Yakima City Hall lies to the southeast of the proposed viticultural 
area at 1,061 feet, a significantly lower elevation than that of the 
Naches Heights. As explained in the petition, cold air drains off the 
plateau and into the surrounding valleys, thereby reducing potential 
frost damage and winterkill to vineyards on the Naches Heights.
Soils
    After the volcanic flow of andesite cooled and hardened to form the 
Naches Heights plateau, pockets of loess, or wind-blown soil, were 
deposited on the plateau, according to the petition. After a period of 
about 1 million years marked by winds and volcanic eruptions in the 
Cascades, deep beds of unique soils formed in the loess pockets on the 
plateau. The predominant soils on the plateau are Tieton loam and 
Ritzville silt loam (U.S. Department of Agriculture, National Resource 
Conservation Service, Web Soil Survey at http://websoilsurvey.nrcs.usda.gov/). According to the petition, the only 
major difference between Tieton loam and Ritzville silt loam is that 
the latter formed in deeper pockets of loess, thus creating a very 
consistent soil type throughout the proposed viticultural area.
    The Naches Heights plateau landform, according to the NRCS web soil 
survey, has generally deep loess soils with

[[Page 77698]]

adequate drainage and deep rooting depths conducive to successful 
viticulture. Further, the grape vine roots are not prone to freezing, 
or winterkill, in the deep plateau soils.
    Unlike the plateau, much of the greater Columbia Valley region that 
surrounds the Naches Heights was covered by alluvial material deposited 
by the ancient Missoula Floods, according to the petition. Hence, the 
proposed viticultural area is surrounded mainly by gravelly alluvial 
soils readily distinguishable from the Tieton loam and Ritzville silt 
loam of Naches Heights. Harwood loam, a transitional soil formed in 
both loess and alluvium, is located in small areas of the southern 
portion of the Naches Heights that is outside the boundary line of the 
proposed viticultural area.
    Rocks, cobbles, and shallow rooting depths are characteristics of 
the lower elevation valley region that surrounds the Naches Heights 
plateau, according to the NRCS data. In the valley region, the cold air 
from the surrounding mountain elevations drains onto the valley floor 
and ponds to create stagnant, cold air environments that make vine 
growth difficult during some seasons, the petition explains. Unlike the 
Naches Heights soils, the valley and floodplain soils, including the 
Weirman, Wenas, and Kittitas series, are subject to seasonal flooding 
and a water table close to the surface of the soil, according to NRCS 
data. In addition, the valley vines have shallow rooting depths that 
can reach the water table and be frozen during extreme cold weather. 
Further, seasonal flooding can affect some portions of the surrounding 
valley area.

Notice of Proposed Rulemaking and Comments Received

    TTB published Notice No. 118 regarding the proposed Naches Heights 
viticultural area in the Federal Register (76 FR 30060) on May 24, 
2011. In that notice, TTB requested comments from all interested 
persons by July 25, 2011. TTB solicited comments on the accuracy of the 
name, boundary, and other required information submitted in support of 
the petition. TTB expressed particular interest in whether the 
geographical features of the proposed viticultural area are so 
distinguishable from the surrounding Columbia Valley viticultural area 
that the proposed Naches Heights viticultural area should no longer be 
a part of the Columbia Valley viticultural area. TTB also sought 
information on the impact of the establishment of the proposed Naches 
Heights viticultural area on wine labels that include the words 
``Naches Heights,'' and whether there would be a conflict between the 
proposed viticulturally significant terms and currently used brand 
names.
    TTB received no comments in response to Notice No. 118.

TTB Finding

    After careful review of the petition, and after receiving no 
contrary evidence during the comment period, TTB finds that the 
evidence provided by the petitioner supports the establishment of the 
proposed Naches Heights viticultural area within the Columbia Valley 
viticultural area as proposed in Notice No. 118. Accordingly, under the 
authority of the Federal Alcohol Administration Act and part 4 of TTB's 
regulations, TTB establishes the ``Naches Heights'' viticultural area 
in Yakima 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 notice. In this final 
rule, TTB altered some of the language in the written boundary 
description provided in the petition and published as part of Notice 
No. 118. TTB made these alterations in the written boundary description 
language for clarity and to conform the written boundary description to 
the boundary of the proposed viticultural area as marked on the USGS 
maps submitted with the petition.

Maps

    The maps for determining the boundary areas 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, its 
name, ``Naches Heights,'' is recognized as a name of viticultural 
significance under 27 CFR 4.39(i)(3). The text of the regulation 
clarifies this point. Once this final rule becomes effective, wine 
bottlers using ``Naches Heights'' 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 name as an appellation of origin.
    On the other hand, TTB finds that no single part of the proposed 
viticultural area name standing alone, such as ``Naches,'' has 
viticultural significance. Accordingly, the regulatory text set forth 
in this document specifies only the full ``Naches Heights'' name as a 
term of viticultural significance for purposes of part 4 of the TTB 
regulations. The establishment of the Naches Heights viticultural area 
will not affect any existing viticultural area, and any bottlers using 
Columbia Valley as an appellation of origin or in a brand name for 
wines made from grapes grown within the Naches Heights viticultural 
area will not be affected by the establishment of this new viticultural 
area. The establishment of the Naches Heights viticultural area will 
allow vintners to use both ``Naches Heights'' and ``Columbia Valley'' 
as appellations of origin for wines made from grapes grown within the 
Naches Heights viticultural area.
    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 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 term of viticultural significance appears in another reference on 
the label in a misleading manner, the bottler would have to obtain 
approval of a new label.
    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

    TTB certifies that this regulation will not have a significant 
economic impact on a substantial number of small entities. The 
regulation imposes no new reporting, recordkeeping, or other 
administrative requirement. Any benefit derived from the use of a 
viticultural area name would be 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 final rule is not a significant regulatory action as defined 
by

[[Page 77699]]

Executive Order 12866. Therefore, it requires no regulatory assessment.

Drafting Information

    Karen A. Thornton of the Regulations and Rulings Division drafted 
this final rule.

List of Subjects in 27 CFR Part 9

    Wine.

The Regulatory Amendment

    For the reasons discussed in the preamble, TTB amends title 27, 
chapter I, part 9, Code of Federal Regulations, 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.


0
2. Subpart C is amended by adding Sec.  9.222 to read as follows:

Subpart C--Approved American Viticultural Areas


Sec.  9.222  Naches Heights.

    (a) Name. The name of the viticultural area described in this 
section is ``Naches Heights''. For purposes of part 4 of this chapter, 
``Naches Heights'' is a term 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 
Naches Heights viticultural area are titled:
    (1) Selah, Wash., 1958, photorevised 1985;
    (2) Yakima West, Wash., 1958, photorevised 1985;
    (3) Wiley City, Wash., 1958, photorevised 1985;
    (4) Naches, Wash., 1958, photorevised 1978; and
    (5) Tieton, Wash., 1971, photoinspected 1981.
    (c) Boundary. The Naches Heights viticultural area is located in 
Yakima County, Washington. The boundary of the Naches Heights 
viticultural area is as described below:
    (1) The beginning point is on the Selah map at the intersection of 
the Burlington Northern single-track rail line and the Congdon 
(Schuler) Canal, section 9, T13N/R18E. From the beginning point, 
proceed south-southwesterly along the single rail line, onto the Yakima 
West map, approximately 0.35 mile to the first intersection of the rail 
line with an unnamed creek, locally known as Cowiche Creek, section 9, 
T13N/R18E; then
    (2) Proceed upstream (westerly) along Cowiche Creek, onto the Wiley 
City map and then onto the Naches map, approximately 6.25 miles to the 
confluence of the North and South Forks of Cowiche Creek, south of 
Mahoney Road, section 3, T13N/R17E; then
    (3) Proceed upstream (northwesterly) along the North Fork of 
Cowiche Creek approximately 1.6 miles to the intersection of the North 
Fork with Livengood Road, section 34, T14N/R17E; then
    (4) Proceed north and northwest on Livengood Road approximately 
1.12 miles until the road turns west and joins Forney Road, and 
continue approximately 1.02 miles along Forney Road to the intersection 
of Forney Road with the North Fork of Cowiche Creek, section 28 
northwest corner, T14N/R17E; then
    (5) Proceed upstream (northwesterly) along the North Fork of 
Cowiche Creek approximately 1.8 miles to the intersection of the North 
Fork with the section 17 west boundary line, T14N/R17E; then
    (6) Proceed straight north along the section 17 west boundary line 
to its intersection with Cox Road, and then continue north along Cox 
Road to the intersection of Cox Road with Rosenkranz Road, section 17 
northwest corner, T14N/R17E; then
    (7) Proceed west on Rosenkranz Road, onto the Tieton map, 
approximately 0.6 mile to the intersection of Rosenkranz Road with 
North Tieton Road, section 7 south boundary line, T14N/R17E; then
    (8) Proceed north on North Tieton Road approximately 0.5 mile to 
the intersection of North Tieton Road with Dilley Road, section 7, 
T14N/R17E; then
    (9) Proceed west on Dilley Road approximately 0.5 mile to the 
intersection of Dilley Road with Franklin Road, section 7 west boundary 
line and the R16E and R17E common line, T14N; then
    (10) Proceed north on Franklin Road approximately 0.8 mile to the 
intersection of Franklin Road with Schenk Road and the section 6 west 
boundary line, T14N/R16E; then
    (11) Proceed west on Schenk Road approximately 0.55 mile to the 
intersection of Schenk Road with Section 1 Road, section 1, T14N/R16E; 
then
    (12) Proceed straight north from the intersection of Schenk Road 
and Section 1 Road approximately 2.2 miles to the 1,600-foot elevation 
line, section 36, T15N/R16E; then
    (13) Proceed easterly and then southeasterly along the 1,600-foot 
elevation line, onto the Naches map, approximately 7.5 miles to the 
intersection of the 1,600-foot elevation line with the section 26 north 
boundary line, T14N/R17E; then
    (14) Proceed straight east along the section 26 north boundary line 
approximately 0.25 mile to the intersection of the section 26 north 
boundary line with the 1,400-foot elevation line, T14N/R17E; then
    (15) Proceed southeasterly along the 1,400-foot elevation line 
approximately 2.5 miles to the intersection of the 1,400-foot elevation 
line with Young Grade Road, section 31, T14N/R18E; then
    (16) Proceed east in a straight line approximately 0.15 mile to the 
Congdon (Schuler) Canal, which closely parallels the 1,300-foot 
elevation line, section 31, T14N/R18E; and then
    (17) Proceed southeasterly along the Congdon (Schuler) Canal, onto 
the Selah map, approximately 3.25 miles, returning to the beginning 
point, section 9, T13N/R18E.

    Signed: September 28, 2011.
John J. Manfreda,
Administrator.
    Approved: October 20, 2011.
Timothy E. Skud,
Deputy Assistant Secretary, Tax, Trade, and Tariff Policy.
[FR Doc. 2011-32017 Filed 12-13-11; 8:45 am]
BILLING CODE 4810-31-P