[Federal Register Volume 80, Number 117 (Thursday, June 18, 2015)]
[Proposed Rules]
[Pages 34857-34864]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-15037]


-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 9

[Docket No. TTB-2015-0009; Notice No. 153]
RIN 1513-AC20


Proposed Establishment of the Loess Hills District Viticultural 
Area

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

ACTION: Notice of proposed rulemaking.

-----------------------------------------------------------------------

SUMMARY: The Alcohol and Tobacco Tax and Trade Bureau (TTB) proposes to 
establish the 12,897-square mile (8,254,151-acre) ``Loess Hills 
District'' viticultural area in western Iowa and northwestern Missouri. 
The proposed viticultural area is not located within, nor does it 
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. TTB invites comments on this proposed addition to its 
regulations.

DATES: Comments must be received by August 17, 2015.

ADDRESSES: Please send your comments on this proposed rule to one of 
the following addresses (please note that TTB has a new address for 
comments submitted by U.S. mail):
     Internet: http://www.regulations.gov (via the online 
comment form for this proposed rule as posted within Docket No. TTB-
2015-0009 at ``Regulations.gov,'' the Federal e-rulemaking portal);
     U.S. Mail: Director, Regulations and Rulings Division, 
Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street NW., Box 12, 
Washington, DC 20005; or
     Hand delivery/courier in lieu of mail: Alcohol and Tobacco 
Tax and Trade Bureau, 1310 G Street NW., Suite 400, Washington, DC 
20005.
    See the Public Participation section of this proposed rule for 
specific instructions and requirements for submitting comments, and for 
information on how to request a public hearing or view or request 
copies of the petition and supporting materials.

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), 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 part 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 part 9) sets 
forth 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

[[Page 34858]]

may petition TTB to establish a grape-growing region as an AVA. Section 
9.12 of the TTB regulations (27 CFR 9.12) prescribes the standards for 
petitions for the establishment or modification 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 affecting 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.

Loess Hills District Petition

    TTB received a petition from Shirley Frederiksen, on behalf of the 
Golden Hills Resource Conservation and Development Inc. and the Western 
Iowa Grape Growers, proposing the establishment of the ``Loess Hills 
District'' AVA in western Iowa and northwestern Missouri. The proposed 
AVA includes all or portions of Fremont, Page, Mills, Montgomery, 
Pottawattamie, Cass, Harrison, Shelby, Audubon, Monoma, Crawford, 
Carroll, Woodbury, Ida, Sac, Plymouth, and Sioux Counties in Iowa, as 
well as portions of Atchison and Holt Counties in Missouri. The 
proposed AVA covers 12,897 square miles (approximately 8,254,151 acres) 
and has 66 commercial vineyards, which cover approximately 112 acres, 
distributed across the proposed AVA. The proposed AVA also has 13 
bonded wineries.
    According to the petition, the distinguishing features of the 
proposed Loess Hills District AVA include its soil, topography, and 
climate. Unless otherwise noted, all information and data pertaining to 
the proposed AVA contained in this proposed rule come from the petition 
for the proposed Loess Hills District AVA and its supporting exhibits.

Name Evidence

    The proposed Loess Hills District AVA derives its name from the 
hills made of extremely thick layers of wind-deposited soil called 
``loess'' that are characteristic of the region. Author Cornelia F. 
Mutel wrote a book about the natural history of the region titled 
Fragile Giants: A Natural History of the Loess Hills,\1\ in which she 
referred to the hills as ``one of North America's gems, possessing 
natural features rarely duplicated elsewhere on the planet.'' In 1999, 
the State of Iowa designated 11,266 acres of land within the region of 
the proposed AVA as the Loess Hills State Forest, with the goal of 
protecting and preserving the unique landforms.
---------------------------------------------------------------------------

    \1\ Cornelia F. Mutel, Fragile Giants: A Natural History of the 
Loess Hills (Iowa City: University of Iowa Press, 1989).
---------------------------------------------------------------------------

    The names used by several Federal agencies to refer to the region 
of the proposed AVA contain the words ``loess hills.'' The U.S. 
Department of Agriculture's Natural Resources Conservation Service has 
designated the region as a Major Land Resource Area known as the ``Iowa 
and Missouri Deep Loess Hills.'' The U.S. Environmental Protection 
Agency describes the area of the proposed AVA as the ``Western Loess 
Hills'' eco-region. The U.S. Geological Survey describes the region as 
the ``Loess Hills Regional Landform.'' The Federal Highway 
Administration gave the name ``Loess Hills National Scenic Byway'' to a 
corridor of roads passing through the region of the proposed AVA. 
Finally, the National Park Service has designated 10,000 acres within 
the proposed AVA as the ``Loess Hills National Natural Landmark.''
    Within the proposed Loess Hills District AVA are several 
businesses, organizations, and events that use the words ``loess 
hills'' in their names. Two annual events in Monona County, Iowa, are 
the Loess Hills Prairie Seminar, which teaches children and adults 
about the natural and cultural history of the region, and the Loess 
Hills Tractor Ride. The Loess Hills Wind Farm supplies energy to the 
town of Rock Port, Missouri, which is within the proposed AVA. Council 
Bluffs, Iowa, is the headquarters of the Loess Hills Preservation 
Society, which works to protect the natural resources of western Iowa 
and northwestern Missouri through education, land protection projects, 
sound land use planning, and land acquisition. The city also is served 
by a local chapter of the Red Cross, which is called the Loess Hills 
Red Cross. The Loess Hills Wood Turners, which meets in Glenwood, Iowa, 
is a club for woodworkers who live in southwestern Iowa. The Loess 
Hills Hideaway Cabins and Campground is located near Pisgah, Iowa. 
Finally, Loess Hills Miniatures is a miniature horse farm near Sioux 
City, Iowa.
    Although the region of the proposed Loess Hills District AVA is 
commonly referred to as ``Loess Hills,'' the petitioner proposes adding 
``District'' to the name in order to avoid potentially affecting 
current use of the phrase ``Loess Hills,'' standing alone, in brand 
names on wine labels. TTB agrees that the addition of the word 
``District'' is an acceptable modification for this purpose.

Boundary Evidence

    The proposed Loess Hills District AVA is described in the petition 
as a long, narrow region of loess-formed hills along the western banks 
of the Missouri and Big Sioux Rivers in western Iowa and northwestern 
Missouri. The proposed AVA stretches from the Iowa-South Dakota border 
south to Craig, Missouri, and east to Exira, Iowa. According to the 
petition, the proposed boundary encompasses the regions where the depth 
of the loess is greater than 20 feet, which allows for excellent water 
drainage and vine rooting depth.
    The proposed western boundary follows U.S. Interstate 29 and the 
Big Sioux River and separates the loess-formed hills of the proposed 
AVA from the low, flat alluvial plains along the Missouri River. The 
proposed northern, eastern, and southern boundaries follow a series of 
roads to separate the steep slopes and deep loess of the proposed AVA 
from the more gently rolling landscapes and shallower loess depths of 
the surrounding regions.

Distinguishing Features

    The distinguishing features of the proposed Loess Hills District 
AVA include soil, topography, and climate.
Soil
    The primary distinguishing feature of the proposed Loess Hills 
District AVA is the deep loess soil. Loess is a loose, crumbly soil 
comprised of quartz, feldspar, mica, and other materials. During the 
Ice Age, glaciers ground the underlying rocks into a fine powder called 
``glacial flour.'' When the glaciers melted, the water pushed the 
glacial flour down the Missouri River Valley. When the waters receded, 
the exposed silt dried and was picked up by the prevailing westerly 
winds and re-deposited over broad areas. This windborne silt is called 
``loess.'' The heaviest, coarsest loess particles were deposited close 
to the Missouri River and formed the sharp, high bluffs of the proposed 
Loess Hills District AVA.
    Loess is common throughout the United States, but the loess of the

[[Page 34859]]

proposed AVA is unique because of its depth. Within portions of the 
proposed AVA, the loess reaches depths of 300 feet. According to the 
petition, the only place on Earth where deep loess layers are as 
extensive as those within the proposed AVA is Shaanxi, China. The deep 
loess of the proposed AVA enable roots to extend deep into the soil 
without being stopped by a restrictive barrier such as denser soils or 
bedrock. The lack of a restrictive barrier also allows water to drain 
away from the roots quickly, which reduces the risk of fungal diseases 
and rot.
    The soil within the proposed Loess Hills District AVA typically has 
a high pH value, ranging from 6.9 to 7.3. According to the petition, 
grapes that are grown in soils with high pH levels show fewer leaf 
symptoms of nutrient imbalance and are better to withstand cold winters 
than similar grapes grown in soils with lower pH levels. The petition 
states the higher soil pH levels of the proposed AVA are the reason 
varieties such as Noiret, St. Vincent, Vignole, Traminnette, Chardonel, 
Chambourcin, Cayuga, and Norton are grown successfully within the 
proposed AVA but are not as common in the regions outside the proposed 
AVA. Additionally, grapes grown in soils with high pH levels produce 
must that has lower levels of potassium. Wines produced from grape must 
with high levels of potassium have lower, less desirable acidity levels 
and are more susceptible to microbial attacks than wines made from 
grape must with low levels of potassium.
    To the north, east, and south of the proposed Loess Hills District 
AVA, the depth of loess is less than 20 feet. The soils to the north, 
east, and south of the proposed AVA also contain glacial till, which 
forms a restrictive barrier that prevents excess water from draining as 
rapidly and fully as within the proposed AVA. As a result, artificial 
drainage is more common in vineyards in these regions than inside the 
proposed AVA. To the immediate west of the proposed AVA, the soils are 
primarily formed from alluvium and are poorly drained and subject to 
flooding.
Topography
    The topography of the proposed Loess Hills District AVA is 
characterized by rolling-to-steep hills. Elevations within the proposed 
AVA peak at approximately 1,500 feet on the highest ridgelines, though 
local relief averages approximately 100 feet. Ridge crests are 
primarily oriented in a north-south direction. Erosion by wind and 
water has sculpted the ridge crests into irregular shapes called 
``peaks and saddles,'' and streams have carved steep-sided valleys. In 
places where the soil has become heavily saturated, the soil has 
slipped as a unit to form rows of staircase-like terraces called ``cat 
steps.'' According to the petition, the irregular terrain of the 
proposed AVA has created sheltered niches with warmer temperatures than 
are found outside the proposed AVA. As a result, certain plants are 
able to live hundreds of miles outside their normal ranges, including 
the yucca, which is native to the southwestern States, and the pawpaw 
tree, which is native to the southeastern States.
    The hilly, often steep, landscape affects viticulture within the 
proposed Loess Hills District AVA. The hilly terrain allows cold night 
air to drain off the slopes and away from the vineyards, reducing the 
risk of frost in the late spring and early fall. The steep slopes also 
shed excess water more quickly and completely than surrounding regions 
with flatter terrain, reducing the risk of fungal diseases and rot. 
However, the steepness of the slopes, combined with the loose texture 
of the soil, increases the risk of erosion. To reduce erosion, many 
vineyard owners within the proposed AVA plant their vines in a north-
south alignment, with a slightly eastward slant to optimize the amount 
of sunlight that reaches the vines. Finally, the same warm niches that 
allow plants such as yucca and pawpaw trees to grow in the proposed AVA 
also allow very late ripening grape varieties such as Norton, 
Chambourcin, and Noiret to grow successfully.
    Outside of the proposed Loess Hills District AVA, the local 
topography is generally flatter and lower. To the north, the local 
relief is similar to that of the proposed AVA, but the hills are more 
broadly undulating, and wide, nearly level valley floors are common 
along the large rivers. To the east, the terrain is nearly level to 
gently rolling, and local relief is between 10 and 20 feet. To the 
south of the proposed AVA are rolling hills with broad ridge tops and 
major rivers with nearly level valleys, similar to the topography north 
of the proposed AVA. Local relief south of the proposed AVA is between 
10 and 20 feet, which is lower than that of the proposed AVA. To the 
west of the proposed AVA, the terrain is marked by broad, undulating 
ridges and wide flood plains, and the local relief is between 5 and 30 
feet.
Climate
    The petition compared the temperature of the proposed Loess Hills 
District AVA to the surrounding region. The following table, compiled 
from data in the petition, summarizes the growing season length, first 
and last frost dates, and growing degree day (GDD) \2\ averages for 
locations both within and outside of the proposed AVA.\3\ The locations 
within the proposed AVA are listed from the northernmost location to 
the southernmost location, as are the locations outside the proposed 
AVA.
---------------------------------------------------------------------------

    \2\ In the Winkler climate classification system, annual heat 
accumulation during the growing season (April 1 through October 31), 
measured in annual growing degree days (GDDs), defines climatic 
regions. One GDD accumulates for each degree Fahrenheit that a day's 
mean temperature is above 50 degrees, the minimum temperature 
required for grapevine growth. See Albert J. Winkler, General 
Viticulture (Berkeley: University of California Press, 1974), pages 
61-64.
    \3\ The climate date for Iowa and Missouri was gathered from 
climate normals available from the Midwest Regional Climate Center 
(http://mrcc.isws.illinois.edu/climate_midwest/mwclimate_data_summaries.htm). Climate normals are calculated every 
10 years using 30 years of data. At the time the petition was 
submitted, the most recent climate normals available were from the 
period of 1971-2000. The climate data for Nebraska and South Dakota 
was gathered from the High Plains Regional Climate Center (HPRCC) 
(http://www,hprcc.unl.edu/data/historical). The period of the data 
collection on the HPRCC site varies from weather station to weather 
station.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                       Average length
              Location                   Average date of last spring frost    Average date of first fall frost (base     of growing        Annual GDD
                                                (base 30 degrees F)                        30 degrees F)              season (in days)      averages
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                   Within Proposed AVA
--------------------------------------------------------------------------------------------------------------------------------------------------------
Sioux City, IA......................  April 19..............................  October 9.............................               173             3,191
Oakland, IA.........................  April 24..............................  October 6.............................               167             3,227
Atlantic, IA........................  April 27..............................  October 6.............................               158             3,174
Tarkio, MO..........................  April 11..............................  October 12............................               182             3,364
                                                                                                                     -----------------------------------

[[Page 34860]]

 
    Average.........................  ......................................  ......................................               170             3,239
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                  North of Proposed AVA
--------------------------------------------------------------------------------------------------------------------------------------------------------
Rock Rapids, IA.....................  April 28..............................  October 2.............................               158             2,279
Sioux Falls, SD.....................  May 2.................................  September 28..........................               139              2787
                                                                                                                     -----------------------------------
    Average.........................  ......................................  ......................................               149             2,533
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                  East of Proposed AVA
--------------------------------------------------------------------------------------------------------------------------------------------------------
Sheldon, IA.........................  May 1.................................  October 2.............................               155             2,729
Cherokee, IA........................  May 2.................................  October 4.............................               157             2,866
Rockwell City, IA...................  April 21..............................  October 8.............................               172             3,063
Guthrie Center, IA..................  April 28..............................  October 4.............................               162             3,013
Bedford, IA.........................  April 19..............................  October 10............................               175             3,430
                                                                                                                     -----------------------------------
    Average.........................  ......................................  ......................................               164             3,020
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                  South of Proposed AVA
--------------------------------------------------------------------------------------------------------------------------------------------------------
Amity, MO...........................  April 12..............................  October 12............................               180             3,516
St. Joseph, MO......................  April 12..............................  October 13............................               188             3,866
                                                                                                                     -----------------------------------
    Average.........................  ......................................  ......................................               184             3,691
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                  West of Proposed AVA
--------------------------------------------------------------------------------------------------------------------------------------------------------
Wayne, NE...........................  May 7.................................  October 1.............................               147             2,911
West Point, NE......................  May 1.................................  October 9.............................               160             3,337
Fremont, NE.........................  April 30..............................  October 1.............................               162             3,517
Ashland, NE.........................  April 27..............................  October 5.............................               161             3,566
Tecumseh, NE........................  May 3.................................  October 6.............................               155             3,613
                                                                                                                     -----------------------------------
    Average.........................  ......................................  ......................................               157             3,389
--------------------------------------------------------------------------------------------------------------------------------------------------------

    The proposed Loess Hills District AVA is well-suited for growing 
grape varieties that require a long time to mature. The early last-
spring-frost date allows vines to emerge from their winter dormancy 
early without the risk of a late frost damaging the new growth or buds. 
The late first-fall-frost date ensures ample time for the grapes to 
remain on the vine and achieve full maturity and reach the desired 
levels of acids and sugars. Finally, the GDD average reflects warm 
growing season temperatures that encourage vine growth and fruit 
development.
    To the north and east of the proposed AVA, the growing season is 
shorter and GDDs are fewer, so late-maturing varieties of grapes would 
not grow as successfully in these regions as they do within the 
proposed AVA. West of the proposed AVA, the GDD accumulations are 
higher, but a later last-spring-frost date increases the risk of frost 
damage to new vine growth and buds, and an earlier first-fall-frost 
date poses a risk for grapes that are still ripening late in the 
growing season. The region to the south has both a longer growing 
season and greater GDD accumulations than the proposed AVA, so late-
maturing varieties may ripen too quickly and develop higher levels of 
sugars than desired.
    The petition also included data on the average annual precipitation 
amounts for the proposed Loess Hills District AVA and the surrounding 
regions. The following table was compiled from data in the petition, 
and the data is from the same sources as the data in the previous 
table.

------------------------------------------------------------------------
                                                          Average annual
                                                          precipitation
                        Location                            amount (in
                                                             Inches)
------------------------------------------------------------------------
                           Within Proposed AVA
------------------------------------------------------------------------
Sioux City, IA.........................................            25.99
Oakland, IA............................................            33.53
Atlantic, IA...........................................            34.77
Tarkio, MO.............................................            33.52
                                                        ----------------
    Average............................................            31.95
------------------------------------------------------------------------
                          North of Proposed AVA
------------------------------------------------------------------------
Rock Rapids, IA........................................            27.40
Sioux Falls, SD........................................            25.07
                                                        ----------------
    Average............................................            26.23
------------------------------------------------------------------------
                          East of Proposed AVA
------------------------------------------------------------------------
Sheldon, IA............................................            29.46
Cherokee, IA...........................................            29.03
Rockwell City, IA......................................            31.26
Guthrie Center, IA.....................................            34.71
Bedford, IA............................................            36.35
                                                        ----------------
    Average............................................            32.16
------------------------------------------------------------------------
                          South of Proposed AVA
------------------------------------------------------------------------
Amity, MO..............................................            36.35
St. Joseph, MO.........................................            35.24
                                                        ----------------
    Average............................................            35.79
------------------------------------------------------------------------
                          West of Proposed AVA
------------------------------------------------------------------------
Wayne, NE..............................................            26.35
West Point, NE.........................................            29.18
Fremont, NE............................................            29.29
Ashland, NE............................................            28.50
Tecumseh, NE...........................................            31.79
                                                        ----------------
    Average............................................            29.02
------------------------------------------------------------------------


[[Page 34861]]

    The average annual precipitation amounts within the proposed Loess 
Hills District AVA are higher than the regions to the north and west, 
and lower than the regions to the east and south. The rainfall amounts 
within the proposed AVA provide sufficient moisture for the vines, and 
irrigation is seldom necessary. However, the relatively high rainfall 
amounts increase the risk of erosion within the proposed AVA, due to 
the nature of the loess soils. As a result, vineyards on steep 
hillsides are often planted in a north-south orientation to help hold 
the soil in place and reduce erosion.
Summary of Distinguishing Features
    In summary, the evidence provided in the petition indicates that 
the geographic and climatic features of the proposed Loess Hills 
District AVA distinguish it from the surrounding regions in each 
direction. To the north, east, and south of the proposed AVA, the 
topography is characterized by broadly undulating hills with shallower 
slopes, and the depth of the loess is less than 20 feet. The regions to 
the north and east also have shorter growing seasons with lower 
accumulations of GDDs. To the south of the proposed AVA, the growing 
season is longer and accumulates more GDDs, and precipitation levels 
are higher. The region to the west of the proposed AVA is characterized 
by wide flood plains, alluvial soils, less rainfall, and a shorter 
growing season with higher GDD accumulations.

TTB Determination

    TTB concludes that the petition to establish the 12,897-square mile 
Loess Hills District AVA merits consideration and public comment, as 
invited in this proposed rule.

Boundary Description

    See the narrative description of the boundary of the petitioned-for 
AVA in the proposed regulatory text published at the end of this 
proposed rule.

Maps

    The petitioner provided the required maps, and they are listed 
below in the proposed 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, 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.
    If TTB establishes this proposed AVA, its name, ``Loess Hills 
District,'' 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 proposed regulation clarifies this point. Consequently, if 
this proposed rule is adopted as a final rule, wine bottlers using the 
name ``Loess Hills District'' in a brand name, including a trademark, 
or in another label reference as to the origin of the wine, would have 
to ensure that the product is eligible to use the AVA name as an 
appellation of origin. TTB is not proposing ``Loess Hills,'' standing 
alone, as a term of viticultural significance if the proposed AVA is 
established, in order to avoid a potential conflict with a current 
label holder. Accordingly, the proposed part 9 regulatory text set 
forth in this document specifies only the full name ``Loess Hills 
District'' as a term of viticultural significance for purposes of part 
4 of the TTB regulations.

Public Participation

Comments Invited

    TTB invites comments from interested members of the public on 
whether it should establish the proposed AVA. TTB is also interested in 
receiving comments on the sufficiency and accuracy of the name, 
boundary, soils, climate, and other required information submitted in 
support of the petition. Please provide any available specific 
information in support of your comments.
    Because of the potential impact of the establishment of the 
proposed Loess Hills District AVA on wine labels that include the term 
``Loess Hills District,'' as discussed above under Impact on Current 
Wine Labels, TTB is particularly interested in comments regarding 
whether there will be a conflict between the proposed area name and 
currently used brand names. If a commenter believes that a conflict 
will arise, the comment should describe the nature of that conflict, 
including any anticipated negative economic impact that approval of the 
proposed AVA will have on an existing viticultural enterprise. TTB is 
also interested in receiving suggestions for ways to avoid conflicts, 
for example, by adopting a modified or different name for the AVA.

Submitting Comments

    You may submit comments on this proposed rule by using one of the 
following three methods (please note that TTB has a new address for 
comments submitted by U.S. Mail):
     Federal e-Rulemaking Portal: You may send comments via the 
online comment form posted with this proposed rule within Docket No. 
TTB-2015-0009 on ``Regulations.gov,'' the Federal e-rulemaking portal, 
at http://www.regulations.gov. A direct link to that docket is 
available under Notice No. 153 on the TTB Web site at  http://www.ttb.gov/wine/wine-rulemaking.shtml. Supplemental files may be 
attached to comments submitted via Regulations.gov. For complete 
instructions on how to use Regulations.gov, visit the site and click on 
the ``Help'' tab.
     U.S. Mail: You may send comments via postal mail to the 
Director, Regulations and Rulings Division, Alcohol and Tobacco Tax and 
Trade Bureau, 1310 G Street NW., Box 12, Washington, DC 20005.
     Hand Delivery/Courier: You may hand-carry your comments or 
have them hand-carried to the Alcohol and Tobacco Tax and Trade Bureau, 
1310 G Street NW., Suite 400, Washington, DC 20005.
    Please submit your comments by the closing date shown above in this 
proposed rule. Your comments must reference Notice No. 153 and include 
your name and mailing address. Your comments also must be made in 
English, be legible, and be written in language acceptable for public 
disclosure. TTB does not acknowledge receipt of comments, and TTB 
considers all comments as originals.
    In your comment, please clearly indicate if you are commenting on 
your own behalf or on behalf of an association, business, or other 
entity. If you are commenting on behalf of an entity, your comment must 
include the entity's name, as well as your name and position title. If 
you comment via Regulations.gov, please enter the entity's name in the 
``Organization'' blank of the online comment form. If you comment via 
postal mail or hand delivery/courier, please submit your entity's 
comment on letterhead.

[[Page 34862]]

    You may also write to the Administrator before the comment closing 
date to ask for a public hearing. The Administrator reserves the right 
to determine whether to hold a public hearing.

Confidentiality

    All submitted comments and attachments are part of the public 
record and subject to disclosure. Do not enclose any material in your 
comments that you consider to be confidential or inappropriate for 
public disclosure.

Public Disclosure

    TTB will post, and you may view, copies of this proposed rule, 
selected supporting materials, and any online or mailed comments 
received about this proposal within Docket No. TTB-2015-0009 on the 
Federal e-rulemaking portal, Regulations.gov, at http://www.regulations.gov. A direct link to that docket is available on the 
TTB Web site at http://www.ttb.gov/wine/wine-rulemaking.shtml under 
Notice No. 153. You may also reach the relevant docket through the 
Regulations.gov search page at http://www.regulations.gov. For 
information on how to use Regulations.gov, click on the site's ``Help'' 
tab.
    All posted comments will display the commenter's name, organization 
(if any), city, and State, and, in the case of mailed comments, all 
address information, including email addresses. TTB may omit voluminous 
attachments or material that the Bureau considers unsuitable for 
posting.
    You may also view copies of this proposed rule, all related 
petitions, maps and other supporting materials, and any electronic or 
mailed comments that TTB receives about this proposal by appointment at 
the TTB Information Resource Center, 1310 G Street NW., Washington, DC 
20005. You may also obtain copies at 20 cents per 8.5- x 11-inch page. 
Please note that TTB is unable to provide copies of USGS maps or any 
similarly-sized documents that may be included as part of the AVA 
petition. Contact TTB's information specialist at the above address or 
by telephone at 202-453-2270 to schedule an appointment or to request 
copies of comments or other materials.

Regulatory Flexibility Act

    TTB certifies that this proposed regulation, if adopted, would not 
have a significant economic impact on a substantial number of small 
entities. The proposed 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 proposed 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 proposed rule.

List of Subjects in 27 CFR Part 9

    Wine.

Proposed Regulatory Amendment

    For the reasons discussed in the preamble, TTB proposes to amend 
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.___ to read as follows:


Sec.  9.____  Loess Hills District.

    (a) Name. The name of the viticultural area described in this 
section is ``Loess Hills District''. For purposes of part 4 of this 
chapter, ``Loess Hills District'' is a term of viticultural 
significance.
    (b) Approved maps. The 13 United States Geological Survey (USGS) 
1:100,000 scale topographic maps used to determine the boundary of the 
Loess Hills District viticultural area are titled:
    (1) Rock Rapids, Iowa-South Dakota, 1985;
    (2) Sioux City North, Iowa- South Dakota-Nebraska, 1986; 
photoinspected 1990;
    (3) Storm Lake, Iowa, 1985; photoinspected 1990;
    (4) Ida Grove, Iowa, 1985; photoinspected 1990;
    (5) Carroll, Iowa, 1993;
    (6) Guthrie Center, Iowa, 1993;
    (7) Creston, Iowa, 1993;
    (8) Omaha, Nebraska-Iowa, 1985; photoinspected, 1990;
    (9) Nebraska City, Nebraska-Iowa-Missouri, 1993;
    (10) Falls City, Nebraska-Missouri, 1986; photoinspected 1991;
    (11) Harlan, Iowa-Nebraska, 1980;
    (12) Blair, Nebraska-Iowa, 1986; photoinspected 1988; and
    (13) Sioux City South, Iowa-Nebraska South Dakota, 1986; 
photoinspected 1990.
    (c) Boundary. The Loess Hills District viticultural area is located 
in Fremont, Page, Mills, Montgomery, Pottawattamie, Cass, Harrison, 
Shelby, Audubon, Monona, Crawford, Carroll, Woodbury, Ida, Sac, 
Plymouth, and Sioux Counties in western Iowa and Atchison and Holt 
Counties in northwestern Missouri. The boundary of the Loess Hills 
District viticultural area is as described below:
    (1) The beginning point is on the Rock Rapids, Iowa-South Dakota 
map, in Sioux County, Iowa, at the intersection of the Big Sioux River 
and an unnamed road known locally as County Road B30 (360th Street), 
east of Hudson, South Dakota. From the beginning point, proceed east on 
County Road B30 approximately 3 miles to a road known locally as County 
Road K22 (Coolidge Avenue); then
    (2) Proceed south on County Road K22 approximately 3 miles to a 
road known locally as County Road B40 (390th Street); then
    (3) Proceed east on County Road B40 approximately 4 miles to a road 
known locally as County Road K30 (Eagle Avenue); then
    (4) Proceed south on County Road K30 approximately 13.1 miles, 
crossing onto the Sioux City North, Iowa-South Dakota-Nebraska map and 
continuing into Plymouth County, Iowa, to a road known locally as 
County Road C12 (110th Street), at Craig, Iowa; then
    (5) Proceed east on County Road C12 approximately 2 miles to a road 
known locally as County Road K42 (Jade Avenue), at the marked 436-meter 
elevation point; then
    (6) Proceed south on County Road K42 approximately 10 miles to a 
road known locally as County Road C38; then
    (7) Proceed east on County Road C38 approximately 6.4 miles to a 
road known locally as County Road K49 (7th Avenue SE), approximately 2 
miles south of La Mars, Iowa; then
    (8) Proceed south on County Road K49 approximately 4 miles to a 
road known locally as County Road C44 (230th Street); then
    (9) Proceed east on County Road C44 approximately 5 miles to a road 
known locally as County Road K64 (Oyens Avenue); then
    (10) Proceed south on County Road K64 approximately 4.1 miles to a 
road known locally as County Road C60 (290th Street); then

[[Page 34863]]

    (11) Proceed east on County Road C60 approximately 5 miles, 
crossing onto the Storm Lake, Iowa map, to State Highway 140; then
    (12) Proceed south on State Highway 140 approximately 3.2 miles to 
a road known locally as County Road L14 (Knox Avenue) in Kingsley, 
Iowa; then
    (13) Proceed south on County Road L14 approximately 2.7 miles, 
crossing into Woodbury County, Iowa, to a road known locally as County 
Road D12 (110th Street); then
    (14) Proceed east on County Road D12 approximately 5 miles to a 
road known locally as County Road L25 (Minnesota Avenue) near Pierson, 
Iowa; then
    (15) Proceed south on County Road L25 approximately 4.5 miles, 
crossing onto the Ida Grove, Iowa map, to U.S. Highway 20; then
    (16) Proceed east on U.S. Highway 20 approximately 22.5 miles, 
crossing into Ida County, Iowa, to a road known locally as County Road 
M25 (Market Avenue); then
    (17) Proceed south on County Road M25 approximately 9.8 miles to 
State Highway 175 east of Ida Grove, Iowa; then
    (18) Proceed east on State Highway 175 approximately 4.1 miles to a 
road known locally as Country Highway M31 (Quail Avenue) near Arthur, 
Iowa; then
    (19) Proceed south on Country Highway M31 approximately 4.4 miles 
to a road known locally as County Road D59 (300th Street); then
    (20) Proceed east on County Road D59 approximately 13 miles, 
crossing into Sac County, Iowa, to a road known locally as County Road 
M64 (Needham Avenue/Center Street) at Wall Lake, Iowa; then
    (21) Proceed south on County Road M64 approximately 6.2 miles to a 
road known locally as County Road E16 (120th Street); then
    (22) Proceed east into Carroll County, Iowa, on County Road E16 
approximately 6 miles, crossing onto the Carroll, Iowa map, to Breda, 
Iowa, and then continue east on State Highway 217 (East Main Street) 
approximately 5 miles to U.S. Highway 71; then
    (23) Proceed south on U.S. Highway 71 approximately 3 miles to a 
road known locally as County Road E26 (140th Street); then
    (24) Proceed east on County Road E26 approximately 5 miles to a 
road known locally as County Road N38 (Quail Avenue); then
    (25) Proceed south on County Road N38 approximately 5 miles to U.S. 
Highway 30 (Lincoln Highway); then
    (26) Proceed east on U.S. Highway 30 approximately 3 miles to a 
road known locally as County Road N44 (Colorado Street) in Glidden, 
Iowa; then
    (27) Proceed south on County Road N44 approximately 8 miles, 
crossing onto the Guthrie Center, Iowa map, to a road known locally as 
County Road E57 (280th Street); then
    (28) Proceed east on County Road E57 approximately 2 miles to a 
road known locally as County Road N44 (Velvet Avenue); then
    (29) Proceed south on County Road N44 approximately 5.4 miles to 
State Highway 141 (330th Street) at Coon Rapids, Iowa; then
    (30) Proceed west on State Highway 141 approximately 12 miles to 
U.S. Highway 71 at Lynx Avenue southeast of Templeton, Iowa; then
    (31) Proceed south on U.S. Highway 71 approximately 35.9 miles, 
crossing into Audubon County, Iowa, and then Cass County, Iowa, and 
onto the Creston, Iowa map, to U.S. Highway 6/State Highway 83 east of 
Atlantic, Iowa; then
    (32) Proceed west, then southwest, then west on U.S. Highway 6 
approximately 18.9 miles, crossing onto the Omaha, Nebraska-Iowa map 
and into Pottawattamie County, Iowa, to a road known locally as County 
Road M47 (500th Street) approximately 1 mile west of Walnut Creek; then
    (33) Proceed south on County Road M47 approximately 12 miles, 
crossing into Montgomery County, Iowa to a road known locally as County 
Road H12 (110th Street); then
    (34) Proceed west on County Road H12 approximately 8.9 miles, 
crossing into Mills County, Iowa, to U.S. Highway 59; then
    (35) Proceed south on U.S. Highway 59 approximately 20.2 miles, 
crossing onto the Nebraska City, Nebraska-Iowa-Missouri map and into 
Page County, Iowa, to a road known locally as County Road J14 (130th 
Street); then
    (36) Proceed east on County Road J14 approximately 4 miles to a 
road known locally as County Road M41 (D Avenue); then
    (37) Proceed south on County Road M41 approximately 1.7 miles to 
State Highway 48 at Essex, Iowa; then
    (38) Proceed northeast then east on State Highway 48 approximately 
1.2 miles to a road known locally as County Road M41 (E Avenue); then
    (39) Proceed south on County Road M41 approximately 7 miles to 
State Highway 2 (210th Street); then
    (40) Proceed east on State Highway 2 approximately 8 miles to a 
road known locally as M Avenue; then
    (41) Proceed south on M Avenue, then east on a road known locally 
as County Road M60 (Maple Avenue), approximately 6.4 total miles, to a 
road known locally as County Road J52 (270th Street); then
    (42) Proceed south in a straight line approximately 3.5 miles to 
the intersection of 304th Street and Maple Avenue (approximately 1.2 
mile southwest of College Springs, Iowa), and then continue south on 
Maple Avenue for 0.5 mile to a road known locally as County Road J64 
(310th Street); then
    (43) Proceed west on County Road J64 approximately 4.5 miles to a 
road known locally as County Road M48 (Hackberry Avenue); then
    (44) Proceed south on County Road M48 approximately 1.2 miles to 
the Iowa-Missouri State line at Blanchard, Iowa, and, crossing into 
Atchison County, Missouri, where County Road M48 becomes State Road M, 
and continue generally south on State Road M approximately 11.2 miles, 
crossing onto the Falls City, Nebraska-Missouri map, to U.S. Highway 
136; then
    (45) Proceed west on U.S. Highway 136 approximately 1 mile to State 
Road N; then
    (46) Proceed south on State Road N 15 miles, crossing into Holt 
County, Missouri, to State Road C; then
    (47) Proceed west then south on State Road C approximately 3 miles 
to U.S. Highway 59; then
    (48) Proceed northwest on U.S. Highway 59 approximately 2 miles to 
the highway's first intersection with Interstate Highway 29 near Craig, 
Missouri; then
    (49) Proceed generally north along Interstate Highway 29, crossing 
into Atchison County, Missouri, and onto the Nebraska City, Nebraska-
Iowa-Missouri map, and continuing into Freemont County and Mills 
County, Iowa, then crossing onto the Omaha, Nebraska-Iowa map and into 
Pottawattamie County, Iowa; then crossing onto the Harlan, Iowa-
Nebraska map and into Harrison County, Iowa; then continuing onto the 
Blair, Nebraska-Iowa map and into Monona County, Iowa; then crossing 
onto the Sioux City South, Iowa-Nebraska-South Dakota Map and into 
Woodbury County for a total of approximately 185 miles, to the 
intersection of Interstate Highway 29 with the Big Sioux River at Sioux 
City, Iowa; then
    (50) Proceed generally north (upstream) along the meandering Big 
Sioux River, crossing onto the Sioux City North, Iowa-South Dakota-
Nebraska map and into Plymouth County and Sioux County, Iowa, and 
continuing onto the Rock Rapids, Iowa-South Dakota map for a total of 
approximately 50 miles, returning to the beginning point.


[[Page 34864]]


    Signed: June 11, 2015.
John J. Manfreda,
Administrator.
[FR Doc. 2015-15037 Filed 6-17-15; 8:45 am]
 BILLING CODE 4810-31-P