[Federal Register Volume 80, Number 227 (Wednesday, November 25, 2015)]
[Rules and Regulations]
[Pages 73658-73660]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-29986]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 9

[Docket No. TTB-2015-0006; T.D. TTB-131; Ref: Notice No. 150]
RIN 1513-AC18


Establishment of the Eagle Foothills 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 approximately 49,815-acre ``Eagle Foothills'' viticultural area in 
Gem and Ada Counties in Idaho. The viticultural area lies entirely 
within the established Snake River Valley 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 December 28, 2015.

FOR FURTHER INFORMATION CONTACT: Dominique Christianson, 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. 278.

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 of the TTB regulations (27 CFR 9.12) 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, 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.

Eagle Foothills Petition

    TTB received a petition from Martha Cunningham, owner of the 3 
Horse Ranch Vineyards, on behalf of the local grape growers and 
vintners, proposing the establishment of the ``Eagle Foothills'' AVA in 
Gem and Ada Counties, Idaho. The proposed AVA is immediately north of 
the city of Eagle and is approximately 10 miles northwest of the city 
of Boise. The Eagle Foothills AVA is located entirely within the 
established Snake River Valley AVA (27 CFR 9.208) and does not overlap 
with any other existing or proposed AVA. The original proposed name for 
the AVA was ``Willow Creek Idaho.'' However, TTB determined that the 
petition did not sufficiently demonstrate that the region is known by 
that name. Therefore, the petitioner submitted a request to change the 
proposed AVA name to ``Eagle Foothills.''
    The proposed Eagle Foothills AVA contains approximately 49,815 
acres, with 9 commercially-producing vineyards covering a total of 67 
acres distributed throughout the proposed AVA. The petition states that 
an additional 4 acres will soon be added to an existing vineyard and 
that an additional 7 commercial vineyards covering approximately 472 
acres are planned within the next few years.
    According to the petition, the distinguishing features of the 
proposed Eagle Foothills AVA are its topography, climate, and soils. 
The proposed AVA is located within the Unwooded Alkaline Foothills 
ecoregion of Idaho. This ecoregion is defined as an arid, sparsely 
populated region of rolling foothills, benches, and alluvial fans 
underlain by alkaline lake bed deposits. A network of seasonal creeks 
flowing southwesterly through the proposed AVA have created deep 
gulches and a rugged terrain that has a variety of slope aspects 
favorable to the vineyard owners. The elevation within the proposed AVA 
ranges from 2,490 feet to approximately 3,400 feet, with an average 
elevation of 2,900 feet.

[[Page 73659]]

The high elevations enable cold air to drain from the proposed AVA and 
pool within the lower surrounding elevations, resulting in fewer 
damaging frosts within the proposed AVA. The cool climate and 
relatively short growing season are suitable for growing early- to mid-
season varieties of grapes such as Chardonnay, Pinot Gris, and 
Riesling. The proposed AVA contains a variety of soils, but loams, 
sandy loams, coarse sandy loams, and stony loams are predominant and 
are notable for their large, irregularly shaped, coarse grains. Due to 
the grains' irregular shapes, ``pockets'' of oxygen form in the soil, 
which promote healthy root growth and allow for rapid water drainage.
    Compared with the proposed AVA, the Emmett Valley and Payette River 
Plain to the north are lower, flatter, and have greater population 
density than the proposed AVA. Due to the lower elevations, the region 
to the north has a warmer climate and a longer growing season than the 
proposed AVA. The soils in the region to the north of the proposed AVA 
are derived from active flood plain alluvium. These soils have a finer, 
more uniform texture and greater water-holding capacity than the soils 
of the proposed Eagle Foothills AVA.
    East of the proposed AVA is the mountainous region known as the 
Boise Front, which has higher elevations. Due to the higher elevations, 
the region to the east has a shorter growing season and cooler growing 
season temperatures than the proposed AVA. The soils of the Boise Front 
are predominantly composed of granite and volcanic materials and lack 
the sedimentary materials found in the soils of the proposed AVA.
    The Boise River Plain is to the south of the proposed AVA, and this 
region has lower elevations, shallow slope plains, and a longer growing 
season than the proposed AVA. The soils in this region are similar to 
the soils north of the proposed AVA, in that they are derived from 
flood plain alluvium and are finer than the soils within the proposed 
Eagle Foothills AVA.
    Finally, the region to the west is also within the Boise River 
Plain which, as mentioned previously, has a lower elevation and warmer 
temperatures, which provide longer growing seasons than are found 
within the proposed AVA. Furthermore, when compared to the proposed 
AVA, the soils in the region to the west are fine-grained and the 
bedrock has a greater depth.

Notice of Proposed Rulemaking and Comments Received

    TTB published Notice No. 150 in the Federal Register on April 14, 
2015 (80 FR 19908), proposing to establish the Eagle Foothills 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. For a detailed description of the evidence 
relating to the name, boundary, and distinguishing features of the 
proposed AVA, and for a detailed comparison of the distinguishing 
features of the proposed AVA to the surrounding areas, see Notice No. 
150.
    In Notice No. 150, TTB solicited comments on the accuracy of the 
name, boundary, and other required information submitted in support of 
the petition. In addition, given the proposed Eagle Foothills AVA's 
location within the existing Snake River Valley AVA, TTB solicited 
comments on whether the geographic features of the proposed AVA 
sufficiently differentiate it from the existing Snake River Valley AVA. 
Finally, TTB requested comments on whether the geographic features of 
the proposed AVA are so distinguishable from the surrounding Snake 
River Valley AVA that the proposed Eagle Foothills AVA should no longer 
be part of the established AVA. The comment period closed on June 15, 
2015. TTB received no comments in response to Notice No. 150.

TTB Determination

    After careful review of the petition, TTB finds that the evidence 
provided by the petitioner supports the establishment of the Eagle 
Foothills AVA. 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 ``Eagle Foothills'' AVA in Gem and Ada 
Counties in Idaho, effective 30 days from the publication date of this 
document.
    TTB has also determined that the Eagle Foothills AVA will remain 
part of the established Snake River Valley AVA. As discussed in Notice 
No. 150, the proposed Eagle Foothills AVA is located along the eastern 
edge of the Snake River Valley AVA and shares the same broad 
characteristics of this AVA, in that both regions are semiarid and have 
vineyards that are planted on slopes to maximize sunlight exposure and 
minimize the risk of frost. However, the Eagle Foothills AVA receives 
several more inches of precipitation per year and has a slightly longer 
growing season. Additionally, the Snake River Valley AVA contains a 
large variety of diverse soils, unlike the proposed AVA which has 
fairly uniform soil characteristics throughout.

Boundary Description

    See the narrative description of the boundary of the Eagle 
Foothills 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, ``Eagle Foothills,'' 
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. Consequently, wine bottlers using the 
name ``Eagle Foothills'' 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 Eagle Foothills AVA will not affect any 
existing AVA, and any bottlers using ``Snake River Valley'' as an 
appellation of origin or in a brand name for wines made from grapes 
grown within the Snake River Valley AVA will not be affected by the 
establishment of this new AVA. The establishment of the Eagle Foothills 
AVA will allow vintners to use ``Eagle Foothills'' and ``Snake

[[Page 73660]]

River Valley'' as appellations of origin for wines made primarily from 
grapes grown within the Eagle Foothills 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 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

    Dominique Christianson 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.  9.252 to read as follows:


Sec.  9.252  Eagle Foothills.

    (a) Name. The name of the viticultural area described in this 
section is ``Eagle Foothills''. For purposes of part 4 of this chapter, 
``Eagle Foothills'' is a term of viticultural significance.
    (b) Approved maps. The 6 United States Geological Survey (USGS) 
1:24,000 scale topographic maps used to determine the boundary of the 
Eagle Foothills viticultural area are titled:
    (1) Southwest Emmett, Idaho, 1970;
    (2) Southeast Emmett, Idaho, provisional edition 1985;
    (3) Pearl, Idaho, provisional edition 1985;
    (4) Eagle, Idaho, 1998;
    (5) Star, Idaho, 1953; and
    (6) Middleton, Idaho, 1958; photorevised 1971.
    (c) Boundary. The Eagle Foothills viticultural area is located in 
Gem and Ada Counties in Idaho. The boundary of the Eagle Foothills 
viticultural area is as described below:
    (1) The beginning point is on the Southwest Emmett map at the 
intersection of the Ada, Gem, and Canyon County lines at the 
southwestern corner of section 31, T6N/R1W.
    (2) From the beginning point, proceed north along the western 
boundary of sections 31 and 30 to the northwest corner of section 31, 
T6N/R1W; then
    (3) Proceed north-northeast in a straight line to the marked 3,109-
foot elevation point near the southwest corner of section 31, T6N/R1W; 
then
    (4) Proceed northeast in a straight line, crossing onto the 
Southeast Emmett map, to the marked 3,230-foot elevation point in 
section 22, T6N/R1W; then
    (5) Proceed east-northeast in a straight line to the marked 3,258-
foot elevation point in section 23, T6N/R1W; then
    (6) Proceed easterly in a straight line to the 3,493-foot elevation 
point in section 23, T6N/R1W; then
    (7) Proceed northeast in a straight line to the 3,481-foot 
elevation point in section 13, T6N/R1W; then
    (8) Proceed northeast in a straight line to the intersection of the 
marked 4-wheel drive trail with the R1W range line; then
    (9) Proceed north along the R1W range line to its first 
intersection with the 3,400-foor elevation contour; then
    (10) Proceed east along the meandering 3,400-foot elevation 
contour, crossing onto the Pearl map, then continuing easterly, then 
southerly, along the meandering 3,400-foot elevation contour, crossing 
Schiller Creek, the North and South Forks of Willow Creek, and Big 
Gulch Creek, to the first intersection of the 3,400-foot contour line 
with the R1E/R2E range line, which forms the eastern boundary of 
section 13, T5N/R1E; then
    (11) Proceed southeast in a straight line to the marked 3,613-foot 
elevation in point Section 18, T5N/R2E; then
    (12) Proceed southwest in a straight line to the marked 3,426-foot 
elevation point in Section 24, T5N/R1E; then
    (13) Proceed west in a straight line to the marked 3,416-foot 
elevation point in Section 24, T5N/R1E; then
    (14) Proceed west in a straight line to the marked 3,119-foot 
elevation point in Section 23, T5N/R1E; then
    (15) Proceed south in a straight line to the marked 3,366-foot 
elevation point in Section 23, T5N/R1E; then
    (16) Proceed southwest in a straight line, crossing onto the Eagle 
map, to the marked 3,372-foot elevation point in Section 26, T5N/R1E; 
then
    (17) Proceed northwest in a straight line, crossing back onto the 
Pearl map, to the marked 3,228-foot elevation point in Section 22, T5N/
R1E; then
    (18) Proceed southwest in a straight line to the marked 3,205-foot 
elevation point in Section 22, T5N/R1E; then
    (19) Proceed south in a straight line, crossing onto the Eagle map, 
to the marked 3,163-foot elevation point in Section 27, T5N/R1E; then
    (20) Proceed southwest in a straight line to the marked 2,958-foot 
elevation point in Section 28, T5N/R1E; then
    (21) Proceed southwest in a straight line to the northeast corner 
of section 32, T5N/R1E; then
    (22) Proceed south along the eastern boundary of Section 32 to the 
point where the boundary joins Pearl Road, then continue south along 
Pearl Road to the intersection of the road with Beacon Road; then
    (23) Proceed west along Beacon Road, crossing onto the Star map, to 
the intersection of Beacon Road with an unnamed light-duty road known 
locally as North Wing Road at the southern boundary of section 32, T5N/
R1W; then
    (24) Proceed south along North Wing Road to the intersection of the 
road with New Hope Road in Section 5, T4N/R1W; then
    (25) Proceed west along New Hope Road, crossing onto the Middleton 
map, to the intersection of the road with the Ada-Canyon County line; 
then
    (26) Proceed north along the Ada-Canyon County line, crossing onto 
the Southwest Emmett map, to the beginning point.

    Signed: October 7, 2015.
John J. Manfreda,
Administrator.
    Approved: October 28, 2015.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and Tariff Policy).
[FR Doc. 2015-29986 Filed 11-24-15; 8:45 am]
BILLING CODE 4810-31-P