[Federal Register Volume 79, Number 148 (Friday, August 1, 2014)]
[Rules and Regulations]
[Pages 44687-44689]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-18265]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 9

[Docket No. TTB-2014-0001; T.D. TTB-122; Ref: Notice No. 141]
RIN 1513-AC03


Establishment of the Manton Valley Viticultural Area

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

ACTION: Final rule; Treasury decision.

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SUMMARY: The Alcohol and Tobacco Tax and Trade Bureau (TTB) establishes 
the 11,178-acre ``Manton Valley'' viticultural area in Shasta and 
Tehama Counties in northern California. The viticultural area does not 
lie within or contain any other established viticultural area. 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: This final rule is effective September 2, 2014.

FOR FURTHER INFORMATION CONTACT: Karen A. Thornton, Regulations and 
Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G 
Street NW., Box 12, Washington, DC 20005; phone 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 provides 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 FAA Act 
pursuant to section 1111(d) of the Homeland Security Act of 2002, 
codified at 6 U.S.C. 531(d). The Secretary has delegated various 
authorities through Treasury Department Order 120-01 (Revised), dated 
December 10, 2013, to the TTB Administrator to perform the functions 
and duties in the administration and enforcement of this law.
    Part 4 of the TTB regulations (27 CFR 4) authorizes 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 9) sets forth the 
standards for the preparation and submission of petitions for the 
establishment or modification of American viticultural areas (AVAs) and 
lists the approved AVAs.

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 a 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 the 
wine's geographic origin. The establishment of AVAs allows vintners to 
describe more accurately the origin of their wines to consumers and 
helps consumers to identify wines they may purchase. Establishment of 
an AVA 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 (27 CFR 4.25(e)(2)) 
outlines the procedure for proposing an AVA and provides that any 
interested party may petition TTB to establish a grape-growing region 
as an AVA. Section 9.12 of the TTB regulations (27 CFR 9.12) prescribes 
standards for petitions for the establishment of AVAs. Petitions to 
establish an AVA must include the following:
     Evidence that the area within the proposed AVA boundary is 
nationally or locally known by the AVA name specified in the petition;
     An explanation of the basis for defining the boundary of 
the proposed AVA;
     A narrative description of the features of the proposed 
AVA that affect viticulture, such as climate, geology, soils, physical 
features, and elevation, that make the proposed AVA distinctive and 
distinguish it from adjacent areas outside the proposed AVA boundary;
     The appropriate United States Geological Survey (USGS) 
map(s) showing the location of the proposed AVA, with the boundary of 
the proposed AVA clearly drawn thereon; and
     A detailed narrative description of the proposed AVA 
boundary based on USGS map markings.

[[Page 44688]]

Manton Valley Petition

    TTB received a petition from Mark Livingston, of Cedar Crest 
Vineyards, on behalf of Cedar Crest Vineyards and other vineyard and 
winery owners in Manton, California, proposing the establishment of the 
11,178-acre ``Manton Valley'' AVA in portions of Shasta and Tehama 
Counties in northern California. Eleven commercial vineyards, covering 
approximately 200 acres, are distributed across the proposed AVA. The 
proposed AVA also has six bonded wineries. The proposed AVA is not 
located within any other AVA.
    According to the petition, the distinguishing features of the 
proposed Manton Valley AVA are its topography, climate, and soils. The 
proposed AVA is stream-cut valley with a flat-to-gently-rolling floor 
and slope angles ranging from 0 to 30 percent and elevations between 
2,000 and 3,500 feet. The moderately warm daytime temperatures within 
the proposed AVA are suitable for growing warmer varieties of grapes 
such as Merlot, Cabernet Sauvignon, and Zinfandel. At night, the 
temperature within the proposed AVA drops lower than in the surrounding 
regions, giving the proposed AVA an average diurnal temperature 
difference of 38.3 degrees at the peak of the growing season. The 
annual rainfall amount within the proposed AVA is a moderate 33.65 
inches, with most rainfall occurring outside the growing season. 
Finally, the soils within the proposed AVA are comprised primarily of 
volcanic ash and weathered volcanic rock and are mainly Cohasset 
gravelly loams, Forward sandy loams, and Manton sandy loams.
    To the north of the proposed Manton Valley AVA, the terrain is 
steeper and elevations are higher. Daytime temperatures are similar to 
those of the proposed AVA, but the nighttime temperatures are higher, 
resulting in a lower diurnal temperature difference. Rainfall amounts 
are higher north of the proposed AVA, and the soils are predominately 
Windy and McCarthy stony loams. To the east of the proposed AVA, 
elevations are higher and slope angles are greater. The growing season 
temperatures are significantly cooler, and rainfall amounts are higher. 
Soils east of the proposed AVA are very shallow and stony and are 
predominately of the Sheld series. To the south of the proposed AVA, 
elevations are lower and slope angles are greater. Growing season 
temperatures are significantly higher than within the proposed AVA. The 
soils south of the proposed AVA are of the Supan and Toomes series, 
which are excessively stony and are primarily used for grazing 
livestock. The region to the west of the proposed AVA is characterized 
by low elevations and large plateaus. Temperatures in the region are 
significantly warmer than within the proposed AVA, and there is less 
rainfall. Soils west of the proposed AVA are mainly of the Guenoc and 
Toomes series, which are excessively stony and lacking in nutrients.

Notice of Proposed Rulemaking and Comments Received

    TTB published Notice No. 141 in the Federal Register on January 14, 
2014 (79 FR 2399), proposing to establish the Manton Valley AVA. In the 
notice, TTB summarized the evidence from the petition regarding the 
name, boundary, and distinguishing features for the proposed AVA. For a 
description of the evidence relating to the name, boundary, and 
distinguishing features of the proposed Manton Valley AVA, and for a 
comparison of the distinguishing features of the proposed AVA to the 
surrounding areas, see Notice No. 141.
    In Notice No. 141, TTB solicited comments on the accuracy of the 
name, boundary, climatic, and other required information submitted in 
support of the petition. The comment period closed on March 17, 2014.
    In response to Notice No. 141, TTB received a total of six 
comments, all of which supported the establishment of the Manton Valley 
AVA. The commenters included a local farm owner who previously worked 
at a local vineyard, a local vineyard owner, a geographer at Eastern 
Illinois University who has studied the geology and geography of the 
region of the proposed AVA, a winery owner who consults with a local 
winery, and two individuals who listed no affiliation. The comments did 
not raise any new issues concerning the proposed AVA. TTB received no 
comments opposing the Manton Valley AVA as proposed.

TTB Determination

    After careful review of the petition and the comments received in 
response to Notice No. 141, TTB finds that the soil, climate, and 
topography evidence provided by the petitioner sufficiently 
distinguishes the proposed Manton Valley AVA from the surrounding 
regions. Accordingly, under the authority of the FAA Act, section 
1111(d) of the Homeland Security Act of 2002, and part 4 of the TTB 
regulations, TTB establishes the 11,178-acre ``Manton Valley'' AVA in 
portions of Shasta and Tehama Counties, California, effective 30 days 
from the publication date of this document.
    In the regulatory text of this final rule, TTB is also correcting a 
typographical error that occurred in the publication of the proposed 
rule. In paragraph (c)(7) of the regulatory text, the phrase ``proceed 
westerly on Rock Creek Road,'' which appeared in the proposed rule, has 
been corrected in this final rule to read ``proceed easterly on Rock 
Creek Road.'' No other changes have been made to the regulatory text.

Boundary Description

    See the narrative description of the boundary of the AVA in the 
regulatory text published at the end of this final rule.

Maps

    The petitioner provided the required maps, and they 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. For a wine to be labeled with an AVA name or with a 
brand name that includes an AVA name, at least 85 percent of the wine 
must be derived from grapes grown within the area represented by that 
name, and the wine must meet the other conditions listed in Sec.  
4.25(e)(3) of the TTB regulations (27 CFR 4.25(e)(3)). If the wine is 
not eligible for labeling with an AVA name and that name 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 AVA name 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 an AVA name 
that was used as a brand name on a label approved before July 7, 1986. 
See Sec.  4.39(i)(2) of the TTB regulations (27 CFR 4.39(i)(2)) for 
details.
    With the establishment of this AVA, its name, ``Manton Valley,'' 
will be recognized as a name of viticultural significance under Sec.  
4.39(i)(3) of the TTB regulations (27 CFR 4.39(i)(3)). The text of the 
regulation clarifies this point. Once this final rule becomes 
effective, wine bottlers using the name ``Manton Valley'' 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 AVA name as an appellation of origin.
    The establishment of the Manton Valley AVA will not affect any 
existing AVA. The establishment of the Manton

[[Page 44689]]

Valley AVA will allow vintners to use ``Manton Valley'' as an 
appellation of origin for wines made from grapes grown within the 
Manton Valley AVA if the wines meet the eligibility requirements for 
the appellation.

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 an AVA 
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

    It has been determined that this rule is not a significant 
regulatory action as defined by Executive Order 12866 of September 30, 
1993. Therefore, no regulatory assessment is required.

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.

Subpart C--Approved American Viticultural Areas

0
2. Subpart C is amended by adding Sec.  9.236 to read as follows:


Sec.  9.236  Manton Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Manton Valley''. For purposes of part 4 of this chapter, 
``Manton Valley'' is a term of viticultural significance.
    (b) Approved maps. The three United States Geological Survey (USGS) 
1:24,000 scale topographic maps used to determine the boundary of the 
Manton Valley viticultural area are titled:
    (1) Manton, CA, 1995;
    (2) Shingletown, CA, 1985 (provisional); and
    (3) Grays Peak, CA, 1995.
    (c) Boundary. The Manton Valley viticultural area is located in 
Shasta and Tehama Counties in northern California. The boundary of the 
Manton Valley viticultural area is as described below:
    (1) The beginning point is on the Manton map, in the community of 
Manton, at the intersection of three unnamed light-duty roads known 
locally as Manton Road, Forward Road, and Rock Creek Road, section 21, 
T30N/R1E. From the beginning point, proceed northerly, then 
northeasterly on Rock Creek Road approximately 0.8 mile to the road's 
intersection with an unnamed light-duty road known locally as Wilson 
Hill Road, section 21, T30N/R1E; then
    (2) Proceed westerly, then northerly on Wilson Hill Road, crossing 
onto the Shingletown map, then continue westerly, then northerly, then 
northeasterly on the turning Wilson Hill Road, approximately 4 miles in 
total distance, to the road's intersection with the marked power line 
in section 8, T30N/R1E; then
    (3) Proceed east-southeasterly along the marked power line, 
crossing onto the Manton map, approximately 1.1 miles to the power 
line's intersection with the Volta Powerhouse, section 16, T30N/R1E; 
then
    (4) From the Volta Powerhouse, proceed south-southeasterly 
(downstream) along an aqueduct and penstock, approximately 0.7 mile in 
total distance, to the penstock's intersection with the North Fork of 
Battle Creek, section 16, T30N/R1E; then
    (5) Proceed north-northeasterly (upstream) along the North Fork of 
Battle Creek approximately 0.3 mile to the confluence of Bailey Creek, 
section 15, T30N/R1E; then
    (6) Proceed east-northeasterly (upstream) along Bailey Creek 
approximately 2 miles to the creek's intersection with an unnamed 
light-duty road known locally as Manton Ponderosa Way, section 11; 
T30N/R1E; then
    (7) Proceed southeasterly along Manton Ponderosa Way approximately 
1.8 miles to the road's intersection with Rock Creek Road, and then 
proceed easterly on Rock Creek Road approximately 0.05 mile to the 
road's intersection with an unnamed light-duty road known locally as 
Forwards Mill Road, section 19, T30N/R2E; then
    (8) Proceed easterly along Forwards Mill Road approximately 4.5 
miles, crossing onto the Grays Peak map, to the road's intersection 
with an unnamed light-duty road known locally as Forward Road, section 
26, T30N/R2E; then
    (9) Proceed generally westerly along Forward Road approximately 4.8 
miles, crossing onto the Manton map, to the road's intersection with an 
unnamed light-duty road known locally as Ponderosa Way, section 31, 
T30N/R2E; then
    (10) Proceed southerly along Ponderosa Way approximately 1.7 miles 
to the road's intersection with an unimproved road (Pacific Gas and 
Electric service road, approximately 0.25 mile west-southwest of Bluff 
Springs), section 1, T29N/R1E; then
    (11) Proceed westerly along the unimproved road approximately 2.2 
miles to the road's intersection with the South Battle Creek Canal, 
section 3, T29N/R1E; then
    (12) Proceed generally northwesterly (downstream) along the 
meandering South Battle Creek Canal approximately 1.3 miles to the 
canal's intersection with an unimproved road known locally as South 
Powerhouse Road, section 4, T29N/R1E; then
    (13) Proceed northerly along South Powerhouse Road approximately 2 
miles to the road's intersection with an unnamed light-duty road known 
locally as Manton Road, section 21, T30N/R1E; then
    (14) Proceed easterly along Manton Road approximately 0.1 mile, 
returning to the beginning point.

    Signed: June 23, 2014.
John J. Manfreda,
Administrator.
    Approved: June 23, 2014.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and Tariff Policy).
[FR Doc. 2014-18265 Filed 7-31-14; 8:45 am]
BILLING CODE 4810-31-P