[Federal Register Volume 81, Number 42 (Thursday, March 3, 2016)]
[Rules and Regulations]
[Pages 11110-11113]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-04710]
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DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade Bureau
27 CFR Part 9
[Docket No. TTB-2015-0008; T.D. TTB-134; Ref: Notice No. 152]
RIN 1513-AC21
Expansion of the Willamette Valley Viticultural Area
AGENCY: Alcohol and Tobacco Tax and Trade Bureau, Treasury.
ACTION: Final rule; Treasury decision.
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SUMMARY: The Alcohol and Tobacco Tax and Trade Bureau (TTB) is
expanding the approximately 5,360-square mile ``Willamette Valley''
viticultural area in northwestern Oregon, by approximately 29 square
miles. Neither the established viticultural area nor the expansion area
is located within any other established viticultural area. TTB
designates viticultural areas to allow vintners to better describe the
origin of their wines and to allow consumers to better identify wines
they may purchase.
DATES: This final rule is effective April 4, 2016.
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
[[Page 11111]]
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 these laws.
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 the standards for the preparation and submission of petitions for
the establishment or modification of American viticultural areas (AVAs)
and lists the approved AVAs.
Definition
Section 4.25(e)(1)(i) of the TTB regulations (27 CFR 4.25(e)(1)(i))
defines a viticultural area for American wine as a delimited grape-
growing region having distinguishing features, as described in part 9
of the regulations, and a name and a delineated boundary, as
established in part 9 of the regulations. These designations allow
vintners and consumers to attribute a given quality, reputation, or
other characteristic of a wine made from grapes grown in an area to the
wine's geographic origin. The establishment of AVAs allows vintners to
describe more accurately the origin of their wines to consumers and
helps consumers to identify wines they may purchase. Establishment of
an AVA is neither an approval nor an endorsement by TTB of the wine
produced in that area.
Requirements
Section 4.25(e)(2) of the TTB regulations (27 CFR 4.25(e)(2))
outlines the procedure for proposing an AVA and provides that any
interested party may petition TTB to establish a grape-growing region
as an AVA. Petitioners may use the same process to request changes
involving established AVAs. Section 9.12 of the TTB regulations (27 CFR
9.12) prescribes standards for petitions for modifying established
AVAs. Petitions to expand an established AVA must include the
following:
Evidence that the area within the proposed expansion area
boundary is nationally or locally known by the name of the established
AVA;
An explanation of the basis for defining the boundary of
the proposed expansion area;
A narrative description of the features of the proposed
expansion area that affect viticulture, such as climate, geology,
soils, physical features, and elevation, that make the proposed
expansion area similar to the established AVA and distinguish it from
adjacent areas outside the established AVA boundary;
The appropriate United States Geological Survey (USGS)
map(s) showing the location of the proposed expansion area, with the
boundary of the proposed expansion area clearly drawn thereon; and
A detailed narrative description of the proposed expansion
area boundary based on USGS map markings.
Petition to Expand the Willamette Valley AVA
TTB received a petition from Steve Thomson, the executive vice
president of King Estate Winery in Eugene, Oregon, proposing to expand
the established ``Willamette Valley'' AVA in northwestern Oregon. The
Willamette Valley AVA (27 CFR 9.90) was established by T.D. ATF-162,
which was published in the Federal Register on December 1, 1983 (48 FR
54221). The Willamette Valley AVA covers approximately 5,360 square
miles in Benton, Lane, Linn, Clackamas, Lincoln, Marion, Multnomah,
Polk, Tillamook, Washington, and Yamhill Counties. Neither the proposed
expansion area nor the established AVA are located within any other
established AVA.
The proposed expansion area is located in Lane County and is
adjacent to the southern tip of the established Willamette Valley AVA
boundary and covers approximately 29 square miles. The King Estate
Winery operates one of the two commercial vineyards that cover a total
of 508 acres within the proposed expansion area, and provided
information that the second vineyard owner also supports the proposed
expansion. The King Estate Winery and the second vineyard each have a
winery within the proposed expansion area. A third winery is also
included in the proposed expansion area; however, it does not operate a
vineyard within the proposed expansion area. The vineyards and wineries
did not exist at the time the Willamette Valley AVA was established in
1983 and currently are not within any AVA. The petition included
letters from the president of the Willamette Valley Wineries
Association and the president of the Oregon Winegrowers Association in
support of the proposed expansion.
According to the petition, the topography, soils, and climate of
the proposed expansion area are similar to those of the established
Willamette Valley AVA. The petition states that both the proposed
expansion area and the established AVA are composed of rolling hills
and valleys between the Coast Range Mountains to the west and the
Cascade Mountains to the east. Elevations within the proposed AVA range
from 500 feet to 1,200 feet, which is within the range of elevations
found in the established AVA. By contrast, the region outside both the
proposed expansion area and the Willamette Valley AVA is marked by
mountainous terrain with higher elevations. The proposed expansion area
and the established AVA are also within the watersheds of both the
Willamette and the Siuslaw Rivers, whereas the region to the south of
both the proposed expansion area and the established AVA drains
exclusively into the Umpqua River.
The petition describes the soils within both the proposed expansion
area and the Willamette Valley AVA as having a ``xeric'' moisture
regime of soil classification, meaning that they typically retain low
amounts of moisture and generally have depleted their moisture reserves
by the end of the growing season. Common soil series within both the
proposed expansion area and the established AVA include Bellpine, Jory,
Willakenzie, Dupee, and Peavine. The petition states that although
Peavine soils are found outside the proposed expansion area and the
established AVA, other soils such as Blanchley, Honeygrove Complex,
Bohanon, Preacher, Klickitat, Kirney, and Digger Complex soils are also
present and are not found in either the proposed expansion area or the
Willamette Valley AVA. Additionally, the soils of the surrounding
region are described as having an ``udic'' moisture regime of soil
classification, meaning the soils typically retain even amounts of
water throughout the year.
The petition compared the climate of the proposed expansion area to
the climates of several established AVAs that are also located within
the larger Willamette Valley AVA, as well as to the climate of the
Umpqua Valley AVA (27 CFR 9.89), which is adjacent to the southernmost
point of the Willamette Valley AVA and south of the proposed
[[Page 11112]]
expansion area. The petition shows that the annual mean temperature,
growing season precipitation amounts, and growing degree day
accumulations within the proposed expansion area are slightly lower
than those of the AVAs within the Willamette Valley AVA. However, the
climate data from the proposed expansion area is more similar to the
climate data from the AVAs located within the Willamette Valley AVA
than to the climate data from the Umpqua Valley AVA.
Notice of Proposed Rulemaking and Comments Received
TTB published Notice No. 152 in the Federal Register on June 18,
2015 (80 FR 34864), proposing to expand the Willamette Valley AVA. In
the document, TTB summarized the evidence from the petition regarding
the name, boundary, and distinguishing features for the proposed
expansion area. For a detailed description of the evidence relating to
the name, boundary, and distinguishing features of the proposed
expansion area, and for a comparison of the distinguishing features of
the proposed expansion area to the surrounding areas and to the
established Willamette Valley AVA, see Notice No. 152.
In Notice No. 152, TTB solicited comments on the accuracy of the
name, boundary, climatic, and other required information submitted in
support of the petition. The comment period closed on August 17, 2015.
TTB received two comments in response to Notice No. 152. The first
comment (Comment 1) did not directly address the proposed expansion of
the Willamette Valley AVA and, instead, issued a general caution
against establishing too many AVAs in any given area, as rapid or
uncontrolled growth may cause long-term harm to the economy, quality of
life, and agricultural diversity of the community. TTB considers this
comment to be outside the scope of the proposed rule.
The second comment (Comment 2) identified two typographical errors
in the proposed regulatory text of Notice No. 152. The commenter noted
that in paragraph (c)(17) of the proposed regulatory text, Oregon State
Highway 99 was incorrectly referred to as Interstate Highway 99. TTB
agrees that the State highway was incorrectly designated in the
proposed regulatory text, and the correction has been made in the final
rule text. The commenter also stated that U.S. Highway 26 was
incorrectly identified as Interstate Highway 26 in redesignated
paragraph (c)(32). Although TTB did not propose to change the text of
redesignated paragraph (c)(32) in Notice No. 152, the commenter is
correct that the Federal highway is improperly designated in that
paragraph as it currently appears in the Code of Federal Regulations.
Therefore, TTB is also making that edit in the final rule text of this
document.
TTB Determination
After careful review of the petition and comments received, TTB
finds that the topography, soil, and climate evidence provided by the
petitioner sufficiently demonstrates that the proposed expansion area
is similar to the established Willamette Valley AVA and should also be
recognized as part of that AVA. Accordingly, under the authority of the
FAA Act, section 1111(d) of the Homeland Security Act of 2002, and
parts 4 and 9 of the TTB regulations, TTB expands the 5,360-square mile
``Willamette Valley'' AVA to include the approximately 29-square mile
expansion area as described in Notice No. 152, effective 30 days from
the publication date of this document.
In the regulatory text of this final rule, TTB is also correcting a
typographical error that appeared in proposed paragraph (c)(17) and a
second typographical error that was identified by a commenter in
redesignated paragraph (c)(32). These corrections will properly
identify two roads as a State highway and a Federal highway,
respectively. No other changes have been made to the regulatory text.
Boundary Description
See the narrative description of the boundary of the AVA expansion
in the regulatory text published at the end of this final rule.
Maps
The petitioner provided the required maps, and they are listed
below in the regulatory text.
Impact on Current Wine Labels
Part 4 of the TTB regulations prohibits any label reference on a
wine that indicates or implies an origin other than the wine's true
place of origin. For a wine to be labeled with an AVA name or with a
brand name that includes an AVA name, at least 85 percent of the wine
must be derived from grapes grown within the area represented by that
name, and the wine must meet the other conditions listed in Sec.
4.25(e)(3) of the TTB regulations (27 CFR 4.25(e)(3)). If the wine is
not eligible for labeling with an AVA name and that name appears in the
brand name, then the label is not in compliance, and the bottler must
change the brand name and obtain approval of a new label. Similarly, if
the AVA name appears in another reference on the label in a misleading
manner, the bottler would have to obtain approval of a new label.
Different rules apply if a wine has a brand name containing an AVA name
that was used as a brand name on a label approved before July 7, 1986.
See Sec. 4.39(i)(2) of the TTB regulations (27 CFR 4.39(i)(2)) for
details.
The expansion of the Willamette Valley AVA will not affect any
other existing AVA, and bottlers using ``Willamette Valley'' as an
appellation of origin or in a brand name for wines made from grapes
within the established Willamette Valley AVA will not be affected by
this expansion. The expansion will allow vintners to use ``Willamette
Valley'' as an appellation of origin for wines made primarily from
grapes grown within the expansion area if the wines meet the
eligibility requirements for the appellation.
Regulatory Flexibility Act
TTB certifies that this regulation will not have a significant
economic impact on a substantial number of small entities. The
regulation imposes no new reporting, recordkeeping, or other
administrative requirement. Any benefit derived from the use of an AVA
name would be the result of a proprietor's efforts and consumer
acceptance of wines from that area. Therefore, no regulatory
flexibility analysis is required.
Executive Order 12866
It has been determined that this rule is not a significant
regulatory action as defined by Executive Order 12866 of September 30,
1993. Therefore, no regulatory assessment is required.
Drafting Information
Karen A. Thornton of the Regulations and Rulings Division drafted
this final rule.
List of Subjects in 27 CFR Part 9
Wine.
The Regulatory Amendment
For the reasons discussed in the preamble, TTB amends title 27,
chapter I, part 9, Code of Federal Regulations, as follows:
PART 9--AMERICAN VITICULTURAL AREAS
0
1. The authority citation for part 9 continues to read as follows:
Authority: 27 U.S.C. 205.
[[Page 11113]]
Subpart C--Approved American Viticultural Areas
0
2. Section 9.90 is amended by revising paragraph (b) introductory text,
adding paragraph (b)(4), removing paragraphs (c)(11) through (13),
redesignating paragraphs (c)(14) through (32) as paragraphs (c)(18)
through (36), revising newly redesignated paragraph (c)(32), and adding
paragraphs (c)(11) through (17) to read as follows:
Sec. 9.90 Willamette Valley.
* * * * *
(b) Approved maps. The approved maps for determining the boundaries
of the Willamette Valley viticultural area are three U.S.G.S. Oregon
maps scaled 1:250,000 and one U.S.G.S. Oregon map scaled 1:24,000. They
are entitled:
* * * * *
(4) ``Letz Creek, OR'' (revised 1984).
(c) * * *
(11) Northeast, then southeast along the 1,000 foot contour line
approximately 12 miles to its intersection with the R5W/R6W range line;
(12) South along the R5W/R6W range line approximately 0.25 mile to
the intersection with the 1,000 foot contour line;
(13) Generally southeast along the meandering 1,000 foot contour
line, crossing onto the Letz Creek map, to a point on the 1,000 foot
contour line located due north of the intersection of Siuslaw River
Road and Fire Road;
(14) South in a straight line approximately 0.55 mile, crossing
over the Siuslaw River and the intersection of Siuslaw River Road and
Fire Road, to the 1,000 foot contour line;
(15) Generally southeast along the meandering 1,000 foot contour
line, crossing onto the Roseburg, Oregon map, to the intersection of
the 1,000 foot contour line with the Lane/Douglas County line;
(16) East along the Lane/Douglas County line approximately 3.8
miles to the intersection with the 1,000 foot contour line just east of
the South Fork of the Siuslaw River;
(17) Generally north, then northeast along the 1,000 foot contour
line around Spencer Butte, and then generally south to a point along
the Lane/Douglas County line 0.5 mile north of State Highway 99;
* * * * *
(32) North along R5E/R6E 10.5 miles to a point where it intersects
the Mount Hood National Forest boundary (approximately three miles
north of U.S. Highway 26);
* * * * *
Signed: February 8, 2016.
John J. Manfreda,
Administrator.
Approved: February 11, 2016.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and Tariff Policy).
[FR Doc. 2016-04710 Filed 3-2-16; 8:45 am]
BILLING CODE 4810-31-P