[Federal Register Volume 81, Number 13 (Thursday, January 21, 2016)]
[Proposed Rules]
[Pages 3356-3362]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-01150]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 9

[Docket No. TTB-2016-0002; Notice No. 157]
RIN 1513-AC23


Proposed Establishment of the Willcox Viticultural Area

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

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Alcohol and Tobacco Tax and Trade Bureau (TTB) proposes to 
establish the approximately 526,000-acre ``Willcox'' viticultural area 
in portions of Cochise and Graham Counties in southeastern Arizona. The 
proposed viticultural area does not lie 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 March 21, 2016.

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-
2016-0002 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 notice for specific 
instructions and requirements for submitting comments, and for 
information on how to request a public hearing or view or obtain 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, superseding Treasury Order 120-01 (Revised), ``Alcohol and 
Tobacco Tax and Trade Bureau,'' dated January 24, 2003), 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 
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.

Willcox Petition

    TTB received a petition from Paul S. Hagar, the special projects 
manager of Dragoon Mountain Vineyard, on behalf of Dragoon Mountain 
Vineyard and other vineyard and winery owners in Willcox, Arizona, 
proposing the establishment of the ``Willcox'' AVA in southeastern 
Arizona. The proposed AVA contains approximately 526,000 acres and has 
21 commercial vineyards, covering approximately 454 acres, distributed 
across the proposed AVA.

[[Page 3357]]

According to the petition, an additional 650 acres of vineyards are 
planned within the proposed AVA in the next few years. The proposed AVA 
also has 18 bonded wineries. According to the petition, the 
distinguishing features of the proposed Willcox AVA include its 
geology, topography, soils, 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 Willcox AVA and 
its supporting exhibits.

Name Evidence

    The proposed Willcox AVA derives its name from the city of Willcox, 
which is located within the proposed AVA. Within the proposed AVA is 
also a large natural feature known as the Willcox Playa, the dry bed of 
an ancient lake. The phone directory for Cochise County, where the 
majority of the proposed AVA is located, lists 26 businesses and 
organizations within the proposed AVA that use the name ``Willcox,'' 
including Willcox Rock and Sand Inc., Willcox Travel Center, Willcox 
Car Wash, Willcox Meat Packing House, and Willcox Real Estate Company. 
Additionally, the region is served by the Willcox Chamber of Commerce, 
the Willcox Rural Fire Department, and the Willcox Unified School 
District. Finally, a business consortium created by wine industry 
members in the region to promote local wines is known by the name 
``Willcox Wine Country.''

Boundary Evidence

    The proposed Willcox AVA is described in the petition as a large, 
high-altitude valley resembling a shallow basin. The valley of the 
proposed AVA is separated from several neighboring valleys by a series 
of high mountain ranges to the north, east, and west. The northern and 
northeastern portions of the proposed AVA boundary follow the base of 
the Pinalenos Mountains, which separate the proposed AVA from the Gila 
Valley. The eastern portion of the boundary follows the foothills of 
the Chiricahua and Dos Cabezas Mountains, which separate the proposed 
AVA from the San Simon Valley. The southern portion of the boundary 
approximates the slight ridge that forms the southern edge of the 
Willcox basin and separates the proposed AVA from the Sulphur Springs 
Valley and its drainage system. The western and northwestern portions 
of the boundary follow the base of the Dragoon, Little Dragoon, and 
Winchester Mountains, which separate the proposed AVA from the Aravaipa 
and San Pedro Valleys.

Distinguishing Features

    The distinguishing features of the proposed Willcox AVA include its 
geology, topography, soils, and climate.
Geology
    The proposed Willcox AVA is in the Arizona geological province 
known as the ``basin-and-range'' province, which is characterized by 
high mountain ranges that are separated by valleys. The features of the 
basin-and-range province were formed over millions of years by periods 
of massive volcanic explosions and the pushing, folding, and stretching 
of the Earth's crust. The underlying geology of the basin in which the 
proposed AVA is located is primarily composed of alluvial (water-borne) 
and eolian (wind-borne) deposits. By contrast, the underlying geology 
of the surrounding mountain ranges is composed mostly of igneous rocks 
derived from volcanic materials, such as rhyolite, granite, and tuff.
    The most recent period of geologic activity in the region of the 
proposed AVA occurred between 15 and 8 million years ago, during a 
period of modest volcanic activity and intense stretching of the crust. 
The stretching of the crust caused large blocks of the mountains to 
drop thousands of feet in a nearly vertical manner. This vertical block 
faulting resulted in the formation of the Chiricahua, Dos Cabezas, 
Pinalenos, Dragoon, Little Dragoon, and Winchester Mountains that 
surround the proposed Willcox AVA and contrast with the flat, shallow 
basin of the proposed AVA.
    Early in this last period of major geologic activity, existing 
drainage systems such as creeks and rivers were disrupted throughout 
southeastern Arizona, and many valleys became closed basins. A closed 
basin is a valley in which no water flows in or out, and any lakes or 
underground aquifers within the closed basin are replenished only 
through rainfall. Over time, many of the closed basins near the 
proposed AVA became filled with enough erosional deposits from the 
surrounding mountains to allow streams to flow once more into and 
through the basins. These basins, where streams now flow, include the 
Gila Valley to the north, the San Simon Valley to the east, the San 
Pedro Valley to the west, the Aravaipa Valley to the northwest, and the 
Sulphur Springs Valley to the south. The Willcox basin, however, was 
permanently closed.
    The closed nature of the Willcox basin allowed it to retain large 
quantities of rainwater during a cool, wet period between 2 million and 
15,000 years ago. Thus, an ancient lake formed, known as Lake Cochise. 
Later, as the climate became warmer and drier, the lake began to 
evaporate, and the clay sediments and alkali salts in the water settled 
in the shallower southern end of the lake. Today, the remains of the 
southern end of Lake Cochise form the Willcox Playa, a large, dry, 
alkali flat in the west-central portion of the proposed Willcox AVA.
    The geologic forces that shaped the proposed Willcox AVA have an 
effect on viticulture. Because the basin system is closed, irrigation 
water comes solely from wells and the small amounts of annual rainfall 
that the region receives. The petition also notes that water is not 
brought into the proposed AVA via canals, aqueducts, or other manmade 
methods. As a result, vineyard owners within the proposed AVA must 
carefully manage their water usage through water-conserving methods 
such as drip irrigation.
Topography
    As previously noted, the proposed Willcox AVA sits within a large, 
shallow basin. Elevations within the proposed AVA range from 4,135 feet 
in the Willcox Playa to 4,700 feet at the edge of the foothills of the 
Chiricahua Mountains along the eastern edge of the proposed AVA. 
Because the proposed AVA is within a closed basin system, the basin's 
floor has not been cut or eroded by flowing bodies of water such as 
creeks, streams, or rivers. As a result, the terrain within the 
proposed AVA is relatively uniform and very flat, with slope angles 
ranging from 0 to 1.5 percent.
    The topography of the proposed Willcox AVA affects viticulture. The 
small range of elevations and the flat terrain allow for relative 
uniformity of vineyard sites and growing conditions throughout the 
proposed AVA. The shallow slopes and the lack of creeks or streams 
within the proposed AVA reduce the risk of erosion. The flat basin 
floor allows for abundant sunlight to reach the vines, which stimulates 
vine growth and fruit maturation. Due to the intense sunlight, vineyard 
owners within the proposed AVA must manage the leaf canopies carefully 
so that the fruit does not become sunburnt, while preventing the 
canopies from becoming so dense and shady that the fruit does not reach 
optimum ripeness. Finally, because the proposed AVA is lower and 
flatter than the neighboring mountain ranges, cool nighttime air 
flowing down from the mountains settles in the proposed AVA. During the 
early spring,

[[Page 3358]]

the cooler air can reach sub-freezing temperatures, which can damage 
new growth or buds on the vines. To protect their vines, vineyard 
owners often install tall fans to mix warmer ambient air with the 
cooler descending air streams and to prevent the cold air from pooling.
    Several mountain ranges surround the proposed AVA, including the 
Pinaleno Mountains to the north and northeast, the Dos Cabezas and 
Chiricahua Mountains to the east, and the Dragoon, Little Dragoon, and 
Winchester Mountains to the west. The elevations within these ranges 
are higher than those found within the proposed Willcox AVA. Large 
valleys with elevations lower than those found in the proposed AVA 
extend beyond each of these mountain ranges. The Gila Valley lies to 
the north, the San Simon Valley lies to the east, the San Pedro Valley 
lies to the west, and the Aravaipa Valley lies to the northwest. All of 
these valleys, along with the Sulphur Springs Valley south of the 
proposed AVA boundary, also are open basin systems. Because these 
valleys are open basin systems, their valley floors have been eroded by 
running water. The continual erosion results in a steady descent in 
elevation along the long axis of each of the valleys, which contrasts 
with the generally level valley floor of the closed basin system that 
comprises the proposed AVA.
Soils
    Although all of the valleys in southeastern Arizona contain soils 
derived from the erosion of the surrounding mountains, the petition 
notes that each mountain block has its own specific geologic details. 
As a result, each valley below will have its own unique soil profile. 
The soils within the proposed Willcox AVA are predominately loams 
comprised of sand, silt, and clay in relatively even proportions. The 
petition included a list of the 30 soil series that, together, comprise 
80 percent of the soils of the proposed Willcox AVA. Of these 30 soil 
series, 20 are specifically loams. The Tubac, Sonoita, Forrest, and 
Frye soils are the most common soils on which viticulture occurs within 
the proposed AVA and are all classified as loamy soils. These soils are 
described as slightly acidic in the first 9 to 12 inches of the soil 
profile, with a gradually increasing alkalinity below that to a depth 
of 5 feet.
    According to the petition, loams generally contain high levels of 
nutrients. For this reason, loams are not typically preferred for 
vineyards, because high levels of nutrients can cause overly vigorous 
vine and leaf growth. However, the petition notes that the stress 
placed on the vines by the hot, dry climate of the proposed AVA keeps 
vine and leaf growth in check, so there is little chance the vines will 
grow too vigorously.
    Loamy soils also retain adequate amounts of water to hydrate 
vineyards while allowing excess water to percolate quickly through the 
loamy soils and into the aquifer. Because vineyard owners within the 
proposed AVA rely primarily on the aquifer for irrigation, soils that 
both retain water and allow for quick recharging of the aquifer are 
beneficial.
    Only 11 of the 30 most common soils found in the proposed Willcox 
AVA comprise at least one tenth of one percent of the total soils found 
in at least one of the surrounding regions. Together, these 11 soils 
represent approximately 30 percent of all the soils within the proposed 
Willcox AVA. The following table shows the percentage of soil each of 
these 11 soils comprises in the proposed AVA and the surrounding areas. 
All 30 of the soils are included in Exhibits 30 and 31 to the petition, 
which are posted as part of Docket TTB-2016-0002.

                                        Table 1--Soils Found in Both the Proposed AVA and the Surrounding Regions
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                                                                                          Percentage of total soils
                                                   -----------------------------------------------------------------------------------------------------
                                                                                                                           Chiricahua
                       Soils                          Willcox, AZ      Safford, AZ     San Simon, AZ      McNeal, AZ     Mountains (SE    Benson, AZ (SW
                                                     (proposed AVA)     (north of         (east of        (south of       of proposed      of proposed
                                                                      proposed AVA)    proposed AVA)    proposed AVA)         AVA)             AVA)
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Tubac soils, including Tubac sandy clay loam and               10                0                4.5              0               13.1              0
 Tubac sandy loam.................................
Karro loam........................................              3.3              0                0                0.5              0                0
Grabe loam........................................              3.2              3.4              0                0                0                0
Pima-Grabe association............................              3.1              0                0.3              0               15.3              0
McAllister loam...................................              2.6              0                0                5                0                0
Comoro sandy loam.................................              2.1              0.3              0                1.3              0                0
Guest silty clay..................................              1.5              0                0                0.3              0                0
Stronghol-McAllister-Elgin complex................              1.5              0                0                0                0                1.8
Sonoita gravelly sandy loam.......................              1.2              2.2              2.2              0                0                0
White House-Forrest association...................              1.1              0                0                0               11                0
Courtland-Sasabe-Diaspar complex..................              1                0                0                7.6              1.1              0.9
                                                   -----------------------------------------------------------------------------------------------------
    Total.........................................             30.6              5.9              7               14.7             40.5              2.7
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    The table shows that the regions to the north, south, east, and 
southwest of the proposed AVA all contain smaller percentages of these 
11 soils. The exception is the region to the southeast of the proposed 
AVA, which contains only 4 of the 30 primary soils of the proposed AVA 
but has a larger percentage of those 4 soils. Frye soils, which are 
among the most prevalent soil series of the proposed AVA, are not 
included in this table because they comprise less than one tenth of one 
percent of the total soils in any of the surrounding regions.
Climate
    Southeastern Arizona, including the region of the proposed Willcox 
AVA, is generally considered to have an arid climate. Annual 
precipitation amounts in the region are very low. According to the 
petition, slight amounts of rain may fall at the end of winter, when 
the vines

[[Page 3359]]

are emerging from dormancy. However, the most significant rainfall 
occurs during the monsoon season, in July and August. During the 
monsoon season, the large-scale atmospheric circulation shifts to 
initiate a flow of humid air from both the Gulf of Mexico and the Gulf 
of California. This flow of humid air brings more cloud cover and 
scattered rainfall in the form of thunderstorms. The following table 
summarizes the average growing season rainfall amounts within the 
proposed AVA and the surrounding areas.

                                                Table 2--Average Annual Growing Season Precipitation \1\
                                                                        [Inches]
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                                                                            Chiricahua       San Simon
                                            Willcox, AZ   Safford (north   Mountains (SE   Valley (east   Douglas (south   Benson (SW of  Cascabel (west
                  Month                       (within       of proposed     of proposed     of proposed     of proposed    proposed AVA)    of proposed
                                           proposed AVA)       AVA)            AVA)            AVA)            AVA)                            AVA)
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March...................................            0.37            0.32            0.98            0.29            0.24            0.33            0.40
April...................................            0.11            0.14            0.25            0.08            0.06            0.10            0.13
May.....................................            0.42            0.14            0.36            0.08            0.15            0.19            0.24
June....................................            0.41            0.16            0.81            0.34            0.23            0.22            0.21
July....................................            3.61            1.80            3.22            2.46            2.99            3.21            3.23
August..................................            2.32            2.01            3.21            1.77            3.11            2.87            2.16
Sept....................................            0.84            0.92            1.79            0.74            1.11            2.24            1.15
October.................................            0.34            0.39            0.68            0.34            0.28            0.16            0.22
Average growing season totals...........            8.42            5.88            11.3             6.1            8.17            9.32            7.74
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    \1\ Source: National Climate Data Center records from 2005 
through 2012. Chiricahua station data only available from 2009 
through 2012.
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    Annual growing season precipitation amounts within the proposed 
Willcox AVA are higher than those of all the stations in the 
surrounding areas except the Chiricahua Mountains and Benson. The 
petition states that rainfall amounts are higher in areas close to the 
mountains and foothills, such as the locations to the southeast and 
southwest of the proposed AVA, because the moisture-laden air cools as 
it rises over the hills and eventually reaches the point where it 
releases its moisture in the form of rain. As the storms move beyond 
the mountains and foothills, they begin to weaken and dissipate.
    Throughout the region of the proposed AVA, temperatures are 
affected by elevation. The warmest temperatures are typically in areas 
with low elevations. The warmest daytime high temperatures typically 
occur in June and are accompanied by strong afternoon winds. The 
following table shows the average annual growing season highs for a 
weather station located within the proposed AVA and the closest weather 
stations in the surrounding areas. Because elevation plays a role in 
the climate in the region, the average elevation of each location is 
also included.

                                              Table 3--Average Annual Growing Season High Temperatures \2\
                                                                  [Degrees Fahrenheit]
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                                                                            Chiricahua       San Simon
                                            Willcox, AZ   Safford (north   Mountains (SE   Valley (east   Douglas (south   Benson (SW of  Cascabel (west
                  Month                       (within       of proposed     of proposed     of proposed     of proposed    proposed AVA)    of proposed
                                           proposed AVA)       AVA)            AVA)            AVA)            AVA)                            AVA)
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Elevation...............................        4,170 ft        2,953 ft        5,400 ft        3,609 ft        4,104 ft        3,691 ft        3,196 ft
March...................................            71.5            72.5            65.9            72.4            73.1            73.4            74.3
April...................................            79.2            81.6            73.4            81.5            80.5            81.0            82.3
May.....................................            86.7            90.2            81.7            89.8            88.6            89.4            90.8
June....................................            96.5            98.7            90.8            98.4            97.4            99.2           100.9
July....................................            96.9            97.8            89.2            97.5            94.8            97.6            99.2
August..................................            94.7            95.2            86.9            95.2            92.1            93.6            95.7
September...............................            91.0            91.6            84.0            91.1            89.7            90.3            92.0
October.................................            82.4            83.6            76.4            82.1            82.7            83.6            83.0
Average.................................            87.3            88.9            81.0            88.5            87.4            88.5            89.8
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    \2\ Source: National Climate Data Center records from 2005 
through 2012. According to the petition, some data may be missing in 
the record, but no average has less than 7 years of data.
---------------------------------------------------------------------------

    The data shows that annual growing season high temperatures within 
the proposed Willcox AVA are lower than those in four of the six 
surrounding regions. The four regions are all at significantly lower 
elevations than the proposed AVA. Temperatures in Douglas, AZ, which is 
at a similar elevation to the proposed AVA, are nearly identical to 
those of the proposed AVA. Of the six surrounding weather stations, the 
station within the Chiricahua Mountains, adjacent to the southeastern 
boundary of the proposed AVA, is at the highest elevation and, as a 
result, has the lowest average high temperature.
    The data in the table shows that during the months of May and June, 
temperatures within the proposed Willcox AVA are noticeably lower than 
in all of the surrounding regions, with the exception of the higher 
elevations of

[[Page 3360]]

the Chiricahua Mountains. The petition notes that May and June, just 
before the start of the monsoon season, are the most stressful months 
for vines. The air is very dry, and most of the water stored in the 
soil from late winter rains has been depleted. Temperatures begin to 
rise noticeably during these two months, placing heat stress on the 
vines and increasing the amount of water that evaporates from their 
leaves. Therefore, in such a warm region as southeastern Arizona, 
average high temperatures that are only a few degrees cooler than the 
surrounding area offer respite to the vines, particularly during the 
hot, dry pre-monsoon months.
    The climate of the proposed Willcox AVA affects viticulture. The 
hot temperatures, combined with extremely dry air for much of the 
growing season, put heavy stress on the vines. In order to preserve 
water, the vines close the stoma on their leaves during the hottest 
parts of the day, especially when temperatures rise above 90 degrees 
Fahrenheit. When the stoma are closed, however, photosynthesis slows 
considerably, preventing the plant from producing food efficiently. As 
a result, fruit development and maturation is delayed. The lack of 
cloud cover for most of the growing season puts the grapes at risk for 
sunburn. So vineyard owners within the proposed AVA manage canopy 
levels to provide shelter for the fruit. Although the rainfall amounts 
during the monsoonal season are not heavy enough to eliminate the need 
for irrigation, the rains do provide some relief for the vines and also 
replenish the aquifer, which is the only source of water within the 
closed basin system that forms the proposed AVA. Additionally, the 
monsoon season brings relief to the vines in the form of higher 
humidity levels, which allow the stoma to remain open longer and 
produce food for the vine during the peak period of fruit development. 
Finally, the increased cloud cover during the monsoon season lowers 
temperatures slightly and provides the maturing grapes some protection 
from sunburn.
Summary of Distinguishing Features
    In summary, the evidence provided in the petition indicates that 
the viticulturally significant geographic features of the proposed 
Willcox AVA distinguish it from the surrounding regions in each 
direction. With respect to topography, the proposed AVA is located 
within a flat valley that is part of a closed basin system. By 
contrast, the regions adjacent to the northern, eastern, and western 
boundaries of the proposed AVA are all marked by mountainous terrain 
with higher, steeper elevations. Beyond each of these mountain ranges 
are large valleys with lower elevations than the proposed AVA. These 
valleys are also all open basin systems, and the valley floors have all 
been eroded to varying degrees by flowing water. South of the proposed 
AVA is the lower-elevation Sulphur Springs Valley, which is also an 
open basin system.
    The soils of the surrounding regions are primarily loams, as are 
the soils of the proposed Willcox AVA. However, the soil series that 
comprise the majority of the soils within the proposed AVA are 
generally present only in very small amounts outside the proposed AVA 
or, in some cases, are not present at all. The exception is the region 
to the southeast of the proposed AVA, where 4 of the 11 primary soil 
series of the proposed AVA are found in higher amounts.
    The climate of the proposed Willcox AVA is hot and arid like much 
of the surrounding regions. However, growing season high temperatures 
within the proposed AVA are lower than those of most of the surrounding 
region, notably during the months of May and June. The exception is 
within the higher elevations of the Chiricahua Mountains, where growing 
season temperatures are generally lower than within the proposed AVA. 
Annual rainfall amounts within the proposed AVA are higher than those 
of the surrounding regions, with the exception of the foothill regions 
to the southeast and southwest of the proposed AVA.

TTB Determination

    TTB concludes that the petition to establish the approximately 
526,000-acre Willcox 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, ``Willcox,'' 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 
``Willcox'' 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.

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 Willcox AVA on wine labels that include the term ``Willcox,'' 
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

[[Page 3361]]

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-2016-0002 on ``Regulations.gov,'' the Federal e-rulemaking portal, 
at http://www.regulations.gov. A direct link to that docket is 
available under Notice No. 157 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. 157 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.
    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-2016-0002 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. 157. 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 other 
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.__Willcox.  

    (a) Name. The name of the viticultural area described in this 
section is ``Willcox''. For purposes of part 4 of this chapter, 
``Willcox'' is a term of viticultural significance.
    (b) Approved maps. The 21 United States Geological Survey (USGS) 
1:24,000 scale topographic maps used to determine the boundary of the 
Willcox viticultural area are titled:
    (1) Fort Grant, AZ, 1996;
    (2) West of Greasewood Mountain, AZ, 1996;
    (3) Greasewood Mountain, AZ, 1996;
    (4) Willcox North, AZ, 1996;
    (5) Railroad Pass, Ariz., 1979;
    (6) Simmons Peak, AZ, 1996;
    (7) Dos Cabezas, AZ, 1996;
    (8) Pat Hills North, Ariz., 1974;
    (9) Pat Hills South, Ariona, 1986 provisional edition;
    (10) Sulphur Hills, AZ, 1996;
    (11) Pearce, AZ., 1996;
    (12) Turquoise Mountain, AZ, 1996;
    (13) Black Diamond Peak, AZ, 1996;
    (14) Cochise Stronghold, AZ, 1996;
    (15) Cochise, AZ, 1996;
    (16) Red Bird Hills, AZ, 1996;
    (17) Steele Hills, AZ, 1996;
    (18) Square Mountain, AZ, 1996;
    (19) Muskhog Mountain, AZ, 1996;
    (20) Reiley Peak, AZ, 1996; and
    (21) Sierra Bonita Ranch, Ariz., 1972.
    (c) Boundary. The Willcox viticultural area is located in Cochise 
and Graham Counties in southeastern Arizona. The boundary of the 
Willcox viticultural area is as described below:
    (1) The beginning point is on the Fort Grant map at the 
intersection of State

[[Page 3362]]

Highway 266 and an unnamed light-duty road known locally as Curtis 
Parkway, in Fort Grant, section 35, T9S/R23E. From the beginning point, 
proceed south-southeast in a straight line approximately 20.4 miles, 
crossing over the West of Greasewood Mountain and the Greasewood 
Mountain map and onto the Willcox North map, to the intersection of 
three unnamed light-duty roads known locally as Porters Ranch Road, 
East Saguaro Road, and North Circle I Road, near benchmark (BM) 4,243 
on the Willcox North map, section 36, T12S/R24E; then
    (2) Proceed east in a straight line approximately 5 miles to 
Interstate Highway 10 near the community of Raso, section 1, T13S/R25E; 
then
    (3) Proceed south in a straight line approximately 0.8 mile to the 
4,400-foot elevation contour, section 1, T13S/R25E; then
    (4) Proceed southwesterly along the 4,400-foot elevation contour 
around the west end of the Dos Cabezas Mountains and continue 
southeasterly along the 4,400-foot elevation contour for a total of 
approximately 13.3 miles, crossing over the Railroad Pass map and onto 
the Simmons Peak map, to State Highway 186 on the Simmons Peak map, 
section 28, T14S/R26E; then
    (5) Proceed south-southeast in a straight line approximately 15.8 
miles, crossing over the Dos Cabezas map and onto the Pat Hills North 
map, to the intersection of the 4,700-foot elevation contour and an 
unnamed light-duty road known locally as East Creasey Ranch Road on the 
Pat Hills North map near BM 4,695, section 21, T16S/R28E; then
    (6) Proceed southerly along the 4,700-foot elevation contour 
approximately 10.6 miles, crossing onto the Pat Hills South map, to an 
unnamed light-duty road known locally as East Uncle Curtis Lane, 
section 7, T18S/R28E; then
    (7) Proceed west along East Uncle Curtis Lane approximately 0.5 
mile to an unnamed light-duty road known locally as South Single Tree 
Lane near the marked 4,664-foot elevation point, section 7, T18S/R28E; 
then
    (8) Proceed south along South Single Tree Lane approximately 0.5 
mile to State Highway 181, section 7, T18S/R28E; then
    (9) Proceed west along State Highway 181 approximately 9.9 miles, 
crossing onto the Sulphur Hills map, to State Highway 191, section 10, 
T18S/R26E; then
    (10) Proceed north-northeasterly, then west, along State Highway 
191 approximately 4.8 miles, crossing onto the Pearce map, to an 
unnamed light-duty road known locally as Kansas Settlement Road, near 
BM 4,327, section 36, T17S/R25E; then
    (11) Proceed southwest in a straight line approximately 8.9 miles, 
crossing over the Turquoise Mountain map and onto the Black Diamond 
Peak map, to the southeastern-most corner of the boundary of the 
Coronado National Forest on the Black Diamond Peak map, section 35, 
T18S/R24E; then
    (12) Proceed north along the boundary of the Coronado National 
Forest approximately 2 miles to the marked 4,821-foot elevation point, 
section 26, T18S/R24E; then
    (13) Proceed north-northwest in a straight line approximately 13 
miles, crossing over the Cochise Stronghold map and onto the Cochise 
map, to the northeastern corner of the boundary of the Coronado 
National Forest at the marked 4,642 elevation point on the Cochise map, 
section 26, T16S/R23E; then
    (14) Proceed north-northwest in a straight line approximately 1.2 
miles to the intersection of the 4,450-foot elevation contour and an 
unnamed secondary highway known locally as West Dragoon Road, section 
23, T16S/R23E; then
    (15) Proceed north in a straight line approximately 1.3 miles to 
the 4,400-foot elevation contour, section 11, T16S/R23E; then
    (16) Proceed generally northerly along the 4,400-foot elevation 
contour approximately 10 miles, crossing onto the Red Bird Hills map, 
to Interstate Highway 10, section 3, T15S/R23E; then
    (17) Proceed north-northwest in a straight line approximately 5.8 
miles, crossing onto the Steele Hills map, to the intersection of the 
4,600-foot elevation contour and an unnamed light-duty road known 
locally as West Airport Road, section 7, T14S/R23E; then
    (18) Proceed east-northeasterly, then easterly, then northerly, 
then easterly along West Airport Road approximately 7.2 miles, crossing 
back onto the Red Bird Hills map and then onto the Square Mountain map, 
to the 4,240-foot elevation contour east of BM 4,264, section 6, T14S/
R24E; then
    (19) Proceed north-northwest in a straight line approximately 20.5 
miles, crossing over the Muskhog Mountain and Reiley Peak maps and onto 
the Sierra Bonita Ranch map, to the intersection of two unnamed light-
duty roads known locally as West Ash Creek Road and South Wells Road, 
near BM 4,487 on the Sierra Bonita Ranch map, section 3, T11S/R22E; 
then
    (20) Proceed generally northerly along South Wells Road to BM 
4,502, then continuing northerly along the western fork of the road for 
a total of approximately 7.7 miles to an unnamed light-duty road known 
locally as Bonita Aravaipa Road, section 27, T9S/R22E; then
    (21) Proceed east in a straight line approximately 8.2 miles, 
crossing onto the Fort Grant map, to the beginning point.

    Signed: January 13, 2016.
John J. Manfreda,
Administrator.
[FR Doc. 2016-01150 Filed 1-20-16; 8:45 am]
BILLING CODE 4810-31-P