[Federal Register Volume 80, Number 152 (Friday, August 7, 2015)]
[Rules and Regulations]
[Pages 47408-47410]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-19454]



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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 9

[Docket No. TTB-2015-0002; T.D. TTB-129; Ref: Notice No. 146]
RIN 1513-AC12


Establishment of the Squaw Valley-Miramonte 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, through this final rule, the approximately 44,690-acre 
``Squaw Valley-Miramonte'' viticultural area in Fresno County, 
California. The viticultural area does not overlap any 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 8, 2015.

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 TTB to 
establish definitive viticultural areas and regulate 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 may petition TTB to establish a grape-growing region 
as an AVA. Section 9.12(c) of the TTB regulations (27 CFR 9.12(c)) 
prescribes 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, including 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.

Squaw Valley-Miramonte Petition

    TTB received a petition from Christine Flannigan, owner of the 
Sierra Peaks Winery and Purgatory Vineyards, on behalf of the Squaw 
Valley Grape Growers Group, proposing the establishment of the ``Squaw 
Valley-Miramonte'' AVA in Fresno County, California, approximately 40 
miles east of the city of Fresno. The proposed AVA is a largely rural 
region in the foothills of the Sierra Nevada Mountains and does not 
overlap any established AVAs. To the northwest, west, and south of the 
proposed AVA is the San Joaquin Valley. The Sequoia National Forest is 
adjacent to the northern and eastern boundaries of the proposed AVA.
    The proposed Squaw Valley-Miramonte AVA contains approximately 
44,690 acres and has 3 bonded wineries and 5 commercially producing 
vineyards, covering a total of 7.5 acres, distributed across the 
proposed AVA. The petition states that vineyards within the proposed 
AVA are small due to the region's steep and rugged terrain, which 
requires most vineyard work to be done by hand rather than by machine.
    According to the petition, the distinguishing features of the 
proposed AVA include its climate, topography, and soils. Daytime 
temperatures within the proposed AVA are generally cooler than in the 
neighboring San Joaquin Valley to the south, west, and northwest. 
However, nighttime temperatures are usually warmer within the proposed 
AVA than within the San Joaquin Valley because cool air drains off the 
slopes of the proposed AVA at night and settles in the valley. The cool 
daytime temperatures and warm nighttime temperatures during the growing 
season produce higher levels of sugar and anthocyanins (pigments 
responsible for the color of grape skins) at harvest than occur in 
grapes grown in the warmer San Joaquin Valley. The temperatures in the 
proposed AVA also contribute to later harvest dates than in the San 
Joaquin Valley. The proposed AVA also receives significantly more 
rainfall than the San Joaquin Valley, but less than the regions to the 
north and east of the proposed AVA, within the Sequoia National Forest. 
The high rainfall amounts within the proposed AVA increase the risk of 
erosion, so vineyard owners plant ground cover between the vineyard 
rows to help hold the soil in place.
    The topography of the proposed AVA consists of steep and rugged 
hillsides

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covered with boulders and oak woodlands. Elevations range from 1,600 to 
3,500 feet, and slope angles in the vineyards range from 15 to 40 
percent. As a result of the steep terrain, mechanized vineyard 
equipment is not practical, so almost all vineyard work is done by 
hand. Therefore, the vineyards in the proposed AVA are much smaller 
than those in the neighboring San Joaquin Valley, where the terrain is 
much lower and flatter. To the north and east of the proposed AVA, the 
terrain becomes too steep for commercial viticulture.
    The majority of the soils within the proposed Squaw Valley-
Miramonte AVA are derived from granitic material, mainly quartz 
diorite. The three most common soil series are the Vista, Sierra, and 
Auberry series. All three soil series are described as having good 
drainage, which reduces the risk of root disease. The soils within the 
proposed AVA have pH levels ranging from a slightly acidic 5.6 to a 
neutral 7.3, levels which are adequate for viticulture and do not 
promote overly vigorous vine or canopy growth. The soils within the 
proposed AVA are severely deficient in nitrogen, a nutrient necessary 
for vine growth, and therefore require supplementation. Additionally, 
soils in some of the vineyards within the proposed AVA have an excess 
of potassium, which interferes with the vines' ability to uptake 
magnesium. As a result, magnesium must be added to the soil in these 
vineyards. To the north of the proposed AVA, the soils are primarily of 
the Coarsegold and Trabuco series, which are derived from weathered 
schist and igneous rock, respectively. The most common soil series east 
of the proposed AVA are the Holland series, derived from weathered 
granitic rock, and the Aiken series, derived from volcanic rocks. These 
soils are more acidic than the soils within the proposed AVA due to 
deep mats of decomposing needle litter from conifer trees. South and 
west of the proposed AVA, within the San Joaquin Valley, alluvial soils 
such as San Joaquin loam and San Joaquin sandy loam become common, as 
are soils of the Hanford and Greenfield series. These soils are all 
less acidic and have finer textures than the soils of the proposed AVA.

Notice of Proposed Rulemaking and Comments Received

    TTB published Notice No. 146 in the Federal Register on January 22, 
2015 (80 FR 3184), proposing to establish the Squaw Valley-Miramonte 
AVA. In the notice, TTB summarized the evidence from the petition 
regarding the name, boundary, and distinguishing features for the 
proposed AVA. The notice also compared the distinguishing features of 
the proposed AVA to the surrounding areas. In Notice No. 146, TTB 
solicited comments on the accuracy of the name, boundary, and other 
required information submitted in support of the petition. The comment 
period closed on March 23, 2015. TTB received no comments in response 
to Notice No. 146.

TTB Determination

    After careful review of the petition, TTB finds that the evidence 
provided by the petitioner supports the establishment of the Squaw 
Valley-Miramonte AVA. Accordingly, under the authority of the FAA Act, 
section 1111(d) of the Homeland Security Act of 2002, and part 4 and 
part 9 of the TTB regulations, TTB establishes the ``Squaw Valley-
Miramonte'' AVA in Fresno County, California, effective 30 days from 
the publication date of this document.

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 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 27 CFR 4.39(i)(2) for details.
    With the establishment of this AVA, its name, ``Squaw Valley-
Miramonte,'' will be recognized as a name of viticultural significance 
under 27 CFR 4.39(i)(3). The text of the regulation clarifies this 
point. Consequently, wine bottlers using the name ``Squaw Valley-
Miramonte'' 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. 
TTB is not designating either ``Squaw Valley'' or ``Miramonte,'' 
standing alone, as terms of viticultural significance because both of 
these names are also associated with multiple locations within the 
United States outside the AVA.

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 final 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.  9.251 to read as follows:


Sec.  9.251  Squaw Valley-Miramonte.

    (a) Name. The name of the viticultural area described in this 
section is ``Squaw Valley-Miramonte.'' For purposes of part 4 of this 
chapter, ``Squaw Valley-

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Miramonte'' is a term of viticultural significance.
    (b) Approved maps. The six United States Geological Survey (USGS) 
1:24,000 scale topographic maps used to determine the boundary of the 
Squaw Valley-Miramonte viticultural area are titled:
    (1) Orange Cove North, Calif., 1966;
    (2) Pine Flat Dam, Calif., 1965; photoinspected 1978;
    (3) Luckett Mtn., Calif., provisional edition 1987;
    (4) Verplank Ridge, Calif., provisional edition 1987;
    (5) Miramonte, Calif., 1966; and
    (6) Tucker Mtn., Calif., 1966.
    (c) Boundary. The Squaw Valley-Miramonte viticultural area is 
located in Fresno County, California. The boundary of the Squaw Valley-
Miramonte viticultural area is as described below:
    (1) The beginning point is located on the Orange Cove North map, at 
the southwest corner of section 21, T14S/R25E. From the beginning 
point, proceed north-northwesterly in a straight line to the marked 
3,355-foot elevation point on Bear Mountain, section 5, T14S/R25E; then
    (2) Proceed northeast in a straight line, crossing onto the Pine 
Flat Dam map and over the marked 3,354-foot elevation point on Bear 
Mountain, section 32, T13S/R25E, and then continuing northeasterly in a 
straight line and crossing onto the Luckett Mountain map, proceed to 
the marked 3,489-foot summit of Dalton Mountain, section 22, T13S/R25E; 
then
    (3) Proceed easterly in a straight line to the Sequoia National 
Forest boundary line at the northwest corner of section 28, T13S/R26E; 
then
    (4) Proceed east along the Sequoia National Forest boundary line, 
crossing onto the Verplank Ridge map, and continue south, then east, 
then south along the national forest boundary line, crossing onto the 
Miramonte map, and then continue south, then east along the national 
forest boundary line to the northeast corner of section 5, T14S/R27E; 
then
    (5) Proceed south along the eastern boundary lines of sections 5, 
8, and 17, T14S/R27E, to the southeast corner of section 17; then
    (6) Proceed east along the northern boundary line of section 21, 
T14S/R27E, to the northeast corner of that section; then
    (7) Proceed south along the eastern boundary lines of sections 21, 
28, and 33, T14S/R27E, to the Fresno-Tulare County boundary line at the 
southeast corner of section 33; then
    (8) Proceed west along the Fresno-Tulare County boundary line, 
crossing onto the Tucker Mountain map, to the southwest corner of 
section 34, T14S/R26E; then
    (9) Proceed north along the western boundary lines of sections 34, 
27, 22, and 15, T14S/R26E, to the northwest corner of section 15; then
    (10) Proceed west along the southern boundary lines of sections 9, 
8, and 7, T14S/R26E, and sections 12 and 11, T14S/R25E, to the 
southwest corner of section 11; then
    (11) Proceed south along the eastern boundary lines of sections 15 
and 22, T14S/R25E, to the southeast corner of section 22; then (12) 
Proceed west along the southern boundary line of section 22, T14S/R25E, 
and, crossing onto the Orange Cove North map, continue west along the 
southern boundary line of section 21, T14S/R25E, returning to the 
beginning point.

    Signed: June 11, 2015.
John J. Manfreda,
Administrator.
    Approved: June 17, 2015.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and Tariff Policy).
[FR Doc. 2015-19454 Filed 8-6-15; 8:45 am]
 BILLING CODE 4810-31-P