[Federal Register Volume 81, Number 85 (Tuesday, May 3, 2016)]
[Proposed Rules]
[Pages 26507-26515]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-10291]



[[Page 26507]]

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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 9

[Docket No. TTB-2016-0003; Notice No. 158]
RIN 1513-AC25


Proposed Establishment of the Appalachian High Country 
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 2,400-square mile ``Appalachian High 
Country'' viticultural area in all or portions of the following 
counties: Alleghany, Ashe, Avery, Mitchell, and Watauga Counties in 
North Carolina; Carter and Johnson Counties in Tennessee; and Grayson 
County in Virginia. 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 July 5, 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: https://www.regulations.gov (via the online 
comment form for this proposed rule as posted within Docket No. TTB-
2016-0003 at ``Regulations.gov,'' the Federal e-rulemaking portal);
     U.S. Mail: Director, Regulations and Rulings Division, 
Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street NW., Box 12, 
Washington, DC 20005; or
     Hand delivery/courier in lieu of mail: Alcohol and Tobacco 
Tax and Trade Bureau, 1310 G Street NW., Suite 400, Washington, DC 
20005.
    See the Public Participation section of this proposed rule for 
specific instructions and requirements for submitting comments, and for 
information on how to request a public hearing or view or request 
copies of the petition and supporting materials.

FOR FURTHER INFORMATION CONTACT: Karen A. Thornton, Regulations and 
Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G 
Street NW., Box 12, Washington, DC 20005; phone 202-453-1039, ext. 175.

SUPPLEMENTARY INFORMATION: 

Background on Viticultural Areas

TTB Authority

    Section 105(e) of the Federal Alcohol Administration Act (FAA Act), 
27 U.S.C. 205(e), authorizes the Secretary of the Treasury to prescribe 
regulations for the labeling of wine, distilled spirits, and malt 
beverages. The FAA Act provides that these regulations should, among 
other things, prohibit consumer deception and the use of misleading 
statements on labels and ensure that labels provide the consumer with 
adequate information as to the identity and quality of the product. The 
Alcohol and Tobacco Tax and Trade Bureau (TTB) administers the FAA Act 
pursuant to section 1111(d) of the Homeland Security Act of 2002, 
codified at 6 U.S.C. 531(d). The Secretary has delegated various 
authorities through Treasury Department Order 120-01, dated December 
10, 2013 (superseding Treasury Department 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 provisions.
    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 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. 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.

Appalachian High Country Petition

    TTB received a petition from Johnnie James, owner of Bethel Valley 
Farms, on behalf of members of the High Country Wine Growers 
Association, proposing to establish the approximately 2,400-square mile 
``Appalachian High Country'' AVA. Twenty-one commercial vineyards, 
covering approximately 71 acres, are distributed across the proposed 
AVA. According to the petition, an additional 8 vineyards comprising 
approximately 37 acres are planned in the near future. There are also 
10 bonded wineries within the proposed AVA.
    The distinguishing features of the proposed Appalachian High 
Country AVA include its topography, climate, and soils. Unless 
otherwise noted, all information and data pertaining to the proposed 
AVA contained in this proposed rule come from the petition for the 
proposed Appalachian High Country AVA and its supporting exhibits.

[[Page 26508]]

Name Evidence

    The region of the proposed Appalachian High Country AVA is often 
referred to as the ``High Country'' because of its high elevations, 
which, according to the petition, are considered to be the highest 
average elevations east of the Mississippi River. The High Country Wine 
Growers Association chose to add ``Appalachian'' to the proposed AVA 
name as a reference to the proposed AVA's location within the 
Appalachian Mountains, as well as to distinguish the proposed AVA from 
other regions across the country that are also referred to as ``High 
Country.''
    The petition included evidence that the phrase ``High Country'' 
applies to the region of the proposed AVA. Several tourism Web sites 
that feature the region of the proposed AVA include the phrase ``High 
Country'' in their names, including High Country Host,\1\ High Country 
Journey,\2\ and GO NC High Country.\3\ The High Country Council of 
Governments \4\ is a planning and development association comprised of 
county and municipal governments in northwestern North Carolina, 
including Alleghany, Ashe, Avery, Mitchell, and Watauga Counties. The 
petition also included a listing of over 100 businesses and 
organizations within the proposed AVA that use the phrase ``High 
Country'' in their names, including High Country Wedding and Event 
Coordinators \5\ in Butler, Tennessee (Johnson County); High Country 
Horse Camp \6\ in Troutdale, Virginia (Grayson County); High Country 
Bottling Company \7\ in West Jefferson, North Carolina (Ashe County); 
High Country Hearth and Chimney \8\ in Banner Elk, North Carolina 
(Avery County); High Country Academy Tutoring Service \9\ (Watauga 
County); and High Country Drywall \10\ in Laurel Springs, North 
Carolina (Alleghany County).
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    \1\ www.highcountryhost.com.
    \2\ www.highcountryjourney.com.
    \3\ www.youtube./user/GoNCHighCountry.
    \4\ www.regiond.org.
    \5\ www.highcountryweddingplanners.com.
    \6\ www.highcountryhorsecampva.net.
    \7\ www.highcountrywater.com.
    \8\ www.highcountryhearth.com.
    \9\ www.highcountryacademync.com.
    \10\ No Web site available.
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    The petition also included a listing of over 40 additional 
businesses and organizations that routinely use the phrase ``High 
Country'' in their printed or radio advertisements. For example, Boone 
Drug, which has locations in all of the Tennessee and North Carolina 
counties within the proposed AVA, advertises that the pharmacy chain 
was established in 1919 and ``has proudly been serving the High Country 
ever since * * *.'' \11\ Prospect Hill Bed and Breakfast, located in 
Mountain City, Tennessee and also within the proposed AVA, invites 
guests to ``enjoy the wonders of the Appalachian High Country.'' \12\ 
Red Tail Mountain Resort and Golf, which is also located in Mountain 
City, Tennessee, advertises itself as ``the finest mountain golf in the 
High Country.'' \13\ Finally, Appalachian Blinds and Closet Company, 
located in Boone, North Carolina, is advertised as the ``High Country's 
one-stop shop'' for home decorating needs.\14\
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    \11\ www.boonedrug.com.
    \12\ www.prospect-hill.com/activities.
    \13\ www.redtailmountain.com.
    \14\ www.appblinds.com.
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Boundary Evidence

    The proposed Appalachian High Country AVA includes all or portions 
of Alleghany, Ashe, Avery, Mitchell, and Watauga Counties in North 
Carolina; Carter and Johnson Counties in Tennessee; and Grayson County 
in Virginia. A portion of the proposed eastern boundary follows the 
Ashe, Alleghany, and Watauga County lines to separate the proposed 
Appalachian High Country AVA from the adjacent Yadkin Valley AVA (27 
CFR 9.174), which has lower elevations. The remainder of the proposed 
eastern boundary follows the Blue Ridge Parkway to separate the 
proposed AVA from the Pisgah National Forest, which is unavailable for 
commercial viticulture due to its status as a National Forest. The 
proposed southern and southwestern boundaries follow the Mitchell 
County line, to separate the proposed AVA from the steeper slopes of 
the Black Mountains. Additionally, the petition states that the phrase 
``High Country'' is not commonly used in reference to the region 
southwest of Mitchell County. A portion of the western boundary follows 
the 2,000-foot elevation line through Carter County and separates the 
high elevations of the proposed AVA from the lower elevations to the 
west. The remainder of the proposed western boundary, along with the 
proposed northwestern and northern boundary, follows the Johnson and 
Grayson County lines, to separate the proposed AVA from regions that 
have shallower slope angles and are not generally referred to as ``High 
Country.''

Distinguishing Features

    The distinguishing features of the proposed Appalachian High 
Country AVA include its topography, climate, and soils.
Topography
    The proposed Appalachian High Country is a mountainous region with 
high elevations and steep slopes. Elevations range from 1,338 feet to 
over 6,000 feet, with vineyards planted at elevations between 2,290 and 
4,630 feet. According to the petition, 12 of the 21 vineyards within 
the proposed AVA are located at elevations at or above 3,000 feet. The 
average slope angle within the proposed AVA is 35.9 degrees, with 
vineyards planted on slope angles ranging from 9 to 46 degrees. The 
petition states that 11 of the vineyards within the proposed AVA are 
planted on slopes with angles of 30 degrees or higher. The following 
tables compare the elevations and slope angles of the proposed AVA to 
those of the surrounding areas.
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    \15\ Elevations calculated using the U.S. Geological Survey's 
Digital Elevation Models.
    \16\ Slope angles calculated using the US Geological Survey's 
Digital Elevation Models. All regions in the survey area have a 
minimum slope angle of 0 degrees.

                                               Table 1--Elevation
                                                  [in feet] 15
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                             Region                                   Minimum         Maximum          Mean
----------------------------------------------------------------------------------------------------------------
Proposed AVA....................................................           1,338           6,259           3,127
Northwest.......................................................           1,069           5,728           2,050
Northeast.......................................................             774           3,960           2,313
Southeast.......................................................             177           5,754           1,012
Southwest.......................................................             961           6,660           2,846
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[[Page 26509]]


                          Table 2--Slope Angle
                              [percent] 16
------------------------------------------------------------------------
                 Region                       Maximum          Mean
------------------------------------------------------------------------
Proposed AVA............................            78.2            35.9
Northwest...............................            78.4              31
Northeast...............................            77.7            28.1
Southeast...............................            82.3            16.9
Southwest...............................            80.1            37.3
------------------------------------------------------------------------

    The data in the tables indicates that the proposed Appalachian High 
Country AVA has higher minimum and mean elevations than all of the 
surrounding regions, as well as a maximum elevation that is higher than 
every region except the region to the southwest, within the Black 
Mountains. The data also indicates that although some of the 
surrounding areas have greater maximum slope angles, the proposed AVA 
has a greater mean slope angle than all of the surrounding regions 
except the southwestern region.
    The high elevations and steep slope angles affect viticulture 
within the proposed Appalachian High Country AVA. Vineyards on the 
steepest slopes are terraced to reduce erosion. The steep slopes are 
also unsuitable for large-scale mechanized tilling, harvesting, and 
spraying. Therefore, instead of planting a single large vineyard, a 
vineyard owner within the proposed AVA will often plant multiple small 
vineyards, which can be more easily tended by hand.
    The high elevations of the proposed AVA expose the vineyards to 
greater amounts of solar irradiance than that received by lower 
surrounding regions. The following table shows the minimum, maximum, 
and mean amount of solar irradiance received in the proposed AVA and 
the surrounding regions.
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    \17\ Solar irradiance calculated using ArcGIS software.

                                            Table 3--Solar Irradiance
                                            [Watt hours per acre] 17
----------------------------------------------------------------------------------------------------------------
                             Region                                   Minimum         Maximum          Mean
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Proposed AVA....................................................            18.4           395.4           233.6
Northwest.......................................................            13.7           383.3           221.0
Northeast.......................................................            17.1           329.0           240.0
Southeast.......................................................             9.2           372.7           231.9
Southwest.......................................................            11.3           404.9           219.1
----------------------------------------------------------------------------------------------------------------

    The mean amount of solar irradiance the proposed AVA receives is 
greater than the amount received in three of the four surrounding 
areas; only the northeast region receives a higher mean amount of solar 
irradiance. According to the petition, the high amounts of solar 
irradiation received in the proposed AVA compensate for the low 
temperatures and allow grapes to mature successfully within a short 
growing season.
Climate
    According to the petition, temperatures within the proposed 
Appalachian High Country AVA are cooler than the surrounding regions. 
The petition included the following tables that show the average annual 
and growing season temperatures for the proposed AVA and the 
surrounding regions.
---------------------------------------------------------------------------

    \18\ Annual climate indices were calculated using the PRISM 
Spatial Climatic Dataset. The PRISM climate data mapping system 
combines climate normals gathered from weather stations, along with 
other factors such as elevation, longitude, slope angles, and solar 
aspect to estimate the general climate patterns for the proposed AVA 
and the surrounding regions. Climate normals are only calculated 
every 10 years, using 30 years of data, and at the time the petition 
was submitted, the most recent climate normals available were from 
the period of 1981-2010.

                                      Table 4--Average Annual Temperatures
                                          [In degrees Fahrenheit] \18\
----------------------------------------------------------------------------------------------------------------
                            Location                                  Maximum         Minimum          Mean
----------------------------------------------------------------------------------------------------------------
Proposed AVA....................................................            62.0            40.9            51.5
Northwest.......................................................            65.9            43.2            54.6
Northeast.......................................................            63.6            42.5            53.1
Southeast.......................................................            70.1            47.1            58.6
Southwest.......................................................            64.9            42.3            53.6
----------------------------------------------------------------------------------------------------------------


                               Table 5--Average Annual Growing Season Temperatures
                                          [In degrees Fahrenheit] \19\
----------------------------------------------------------------------------------------------------------------
                            Location                                  Maximum         Minimum          Mean
----------------------------------------------------------------------------------------------------------------
Proposed AVA....................................................            72.0            50.5            61.3
Northwest.......................................................            76.7            53.1            64.9

[[Page 26510]]

 
Northeast.......................................................            74.2            52.4            63.3
Southeast.......................................................            80.2            57.2            68.7
Southwest.......................................................            74.4            51.7            63.1
----------------------------------------------------------------------------------------------------------------

    The petition also included information on the growing degree days 
(GDDs),\20\ Winkler regions,\21\ growing season length, and plant 
hardiness zones of locations both within and outside of the proposed 
Appalachian High Country AVA. The growing season length, GDDs, and 
Winkler regions are all based on the 1981-2010 climate normals, which 
were the most recent climate normals available at the time the petition 
was submitted. The plant hardiness zone information was gathered from 
the United States Department of Agriculture's 2012 Plant Hardiness Zone 
interactive map.\22\ The information is included in the following 
table.
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    \19\ Growing season indices were also calculated using the PRISM 
Spatial Climatic Dataset and climate normal from 1981-2010. 
``Growing season'' is defined as the period from April 1-October 31.
    \20\ In the Winkler climate classification system, annual heat 
accumulation during the growing season, measured in annual growing 
degree days (GDDs), defines climatic regions. One GDD accumulates 
for each degree Fahrenheit that a day's mean temperature is above 50 
degrees, the minimum temperature required for grapevine growth. See 
Albert J. Winkler, General Viticulture (Berkeley: University of 
California Press, 1974), pages 61-64.
    \21\ In the Winkler climate classification system, geographical 
areas are divided into five climate zones based on growing degree 
days (GDDs), with Region I being the coolest and Region V being the 
hottest. The zone ranges are as follows: Region I = 2,500 GDDs or 
less; Region II = 2,501-3,000 GDDs; Region III = 3,001-3,500 GDDs; 
Region IV = 3,501-4,000 GDDs; Region V = 4,001 GDDs or more. See 
Albert J. Winkler, General Viticulture (Berkeley: University of 
California Press, 1974), pages 61-64.
    \22\ The plant hardiness zone scale is based on average annual 
minimum winter temperatures, divided into 10-degree Fahrenheit zones 
ranging from a low of 1 to a high of 13. Each zone is further 
divided into two 5-degree sub-zones labeled ``a'' and ``b,'' with 
the ``a'' zone being the colder zone. See 
www.planthardiness.ars.usda.gov/PHZMWeb.

                Table 6--GDDs, Winkler Regions, Growing Season Length, and Plant Hardiness Zones
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                                                                        Growing season
             Location              Growing degree     Winkler region      length (in      Plant hardiness zone
                                        days                                 days)
----------------------------------------------------------------------------------------------------------------
Proposed AVA.....................           2,635  I/II...............           139.2  6a/6b (-10 to 0 degrees
                                                                                         Fahrenheit).
Northwest........................           3,507  III/IV.............           153.6  6b (-5 to 0 degrees
                                                                                         Fahrenheit).
Northeast........................           3,114  III................           157.3  6b (-5 to 0 degrees
                                                                                         Fahrenheit).
Southeast........................           3,762  IV/V...............           161.3  7a/7b (0 to 10 degrees
                                                                                         Fahrenheit).
Southwest........................           3,341  III................           148.3  6b/7a (-5 to 5 degrees
                                                                                         Fahrenheit).
----------------------------------------------------------------------------------------------------------------

    The climate data presented in the three tables shows that the 
proposed Appalachian High Country AVA is a cool region with a shorter 
growing season and fewer GDDs than the surrounding regions. According 
to the petition, the cool climate, small accumulation of GDDs, and 
short growing season within the proposed viticulture area have an 
effect on viticulture. For instance, varieties of grapes that require 
warm temperatures and a long period of time to mature successfully do 
not grow well within the proposed AVA. Instead, vineyard owners within 
the proposed AVA choose to plant cold-hardy hybrid varietals of grapes 
such as Marquette, traminette, seyval blanc, cabernet franc, vidal 
blanc, and Frontenac. These varieties require less time to reach full 
maturity and can withstand the colder winter temperatures of the 
proposed AVA. The petition also notes that the temperatures of the 
proposed AVA are well-suited for the production of ice wine, which must 
be produced from grapes that have been naturally frozen on the vine. 
According to the petition, temperatures within the proposed AVA can 
easily drop low enough to freeze the mature grapes before they rot.
    The petition also included information about the average annual and 
growing season precipitation amounts for the proposed Appalachian High 
Country AVA and the surrounding areas. The information is included in 
the following table.
---------------------------------------------------------------------------

    \23\ Data collected using the PRISM Spatial Climate Dataset and 
the 1981-2010 climate normals.

                         Table 7--Precipitation
                            [In inches] \23\
------------------------------------------------------------------------
                                                              Average
                Location                  Average annual  growing season
                                           precipitation   precipitation
------------------------------------------------------------------------
Proposed AVA............................            48.6            29.5
Northwest...............................            45.3            27.0
Northeast...............................            46.4            28.6
Southeast...............................            47.2            28.2
Southwest...............................            53.0            30.9
------------------------------------------------------------------------


[[Page 26511]]

    The data shows that the proposed AVA receives more rainfall than 
all the surrounding regions except the region to the southwest. 
According to the petition, the high rainfall amounts of the proposed 
AVA affect viticulture. High rainfall amounts, particularly during the 
growing season, can promote disease and fungus in grapevines. However, 
the cold-hardy hybrid varietals prevalent within the proposed AVA have 
also been bred for disease resistance. Therefore, the petition states, 
the grapes grown in the proposed AVA are well-suited to withstand both 
cold and wet climates.
Soils
    The soils of the proposed Appalachian High Country AVA are derived 
from igneous and metamorphic rocks such as gneiss and granite. The 
soils are described as well-drained soils with a fine, loamy texture. 
In environments with high annual precipitation amounts, such as the 
proposed AVA, well-drained soils help reduce the risk of fungus and rot 
in grapevines. The petition states that organic matter comprises up to 
14 percent of the soils in the proposed AVA, providing an excellent 
source of nutrients for grapevines. The soils are also considered very 
deep, with 60 inches or more to bedrock, which provides ample room for 
root growth.
    The petition states that there are 26 soil series associations 
represented within the proposed AVA. Eight of these soil series 
associations comprise 82 percent of the total soils of the proposed 
AVA. The following table sets out the eight major soil series 
associations and the percentage each series makes up of the total 
proposed AVA soils.
---------------------------------------------------------------------------

    \24\ Source: 2013 USDA Natural Resources Conservation Service 
Web Soil Survey (www.websoilsurvey.nrcs.usda.gov).

  Table 8--Major Soil Series Associations Within the Proposed AVA \24\
------------------------------------------------------------------------
                                                           Percentage of
                 Soil series association                  total proposed
                                                             AVA soils
------------------------------------------------------------------------
Tusquitee-Edneyville....................................              24
Hayesville..............................................              17
Tate-Maymead-Ditney.....................................               9
Tusquitee-Porters-Fannin-Evard-Brevard-Ashe.............               9
Chester-Ashe............................................               7
Watauga-Clifton-Chandler................................               7
Clifton-Chester.........................................               5
Tusquitee-Porters-Codorus-Chester.......................               4
    Total...............................................              82
------------------------------------------------------------------------

    The soils of the proposed Appalachian High Country AVA distinguish 
it from the surrounding regions. According to the petition, two of the 
eight most prevalent soil series associations within the proposed AVA 
(Watauga--Clifton--Chandler and Clifton-Chester) are not found in the 
surrounding regions. Other soil series associations found within the 
proposed AVA are also found in the regions outside the proposed AVA to 
the northeast and southwest, but in greater amounts. For example, to 
the northeast of the proposed AVA, the Hayesville soil series 
association is the most prevalent soil series association, comprising 
43 percent of the soils. By contrast, this soil series association 
makes up only 17 percent of the soils of the proposed AVA. Two other 
major soil series associations are prevalent to the northeast of the 
proposed AVA. The Myersville--Catoctin and the Wallen-Lilly--Drypond--
Dekalb soil series associations comprise 15 and 12 percent of the soils 
in those regions, respectively. These two soil series associations 
combined only account for 3 percent of the soils within the proposed 
AVA. Southwest of the proposed AVA the Chester-Ashe soil series 
association is the most prevalent association, comprising 27 percent of 
the soils, compared to only 7 percent of the soils within the proposed 
AVA.
    The soil series associations that are most prevalent in the areas 
southeast and northwest of the proposed AVA are present only in 
miniscule amounts within the proposed AVA. The most common soil series 
association in the region to the southeast of the proposed AVA is the 
Hiwassee--Cecil association, which makes up 30 percent of that region's 
soils. The region to the northwest of the proposed AVA is dominated by 
the Frederick--Carbo soil series association, which comprises 22 
percent of that region's soils.
Summary of Distinguishing Features
    In summary, the evidence provided in the petition indicates that 
the geographic features of the proposed Appalachian High Country AVA 
distinguish it from the surrounding regions in each direction. The 
following table summarizes the distinguishing features of the proposed 
AVA and the surrounding regions.

--------------------------------------------------------------------------------------------------------------------------------------------------------
                 Location                                                             Distinguishing features
--------------------------------------------------------------------------------------------------------------------------------------------------------
Proposed Appalachian High Country AVA....   Elevations between 1,338 and 6,259 feet.
                                            Mean slope angle of 35.9 percent.
                                            High levels of solar irradiance.
                                            Cool Region I/II climate with short growing season.
                                            Average annual precipitation total of 48.6 inches.
                                            Soils primarily of the Tusquitee--Edneyville soil series association.
Northwest................................   Elevations between 1,069 and 5,728 feet.
                                            Mean slope angle of 31 percent.
                                            Lower levels of solar irradiance.
                                            Warm Region III/IV climate with long growing season.
                                            Average annual precipitation total of 45.3 inches.
                                            Soils primarily of the Frederick--Carbo soil series association.
Northeast................................   Elevations between 774 and 3,906 feet.
                                            Mean slope angle of 28.1 percent.
                                            Lower levels of solar irradiance.
                                            Warm Region III climate with long growing season.
                                            Average annual precipitation total of 46.4 inches.
                                            Soils primarily of the Hayesville soil series association.
Southeast................................   Elevations between 177 and 5,754 feet.
                                            Mean slope angle of 16.9 percent.
                                            Lower levels of solar irradiance.
                                            Hot Region IV/V climate with long growing season.

[[Page 26512]]

 
                                            Average annual precipitation total of 47.2 inches.
                                            Soils primarily of the Hiwassee--Cecil soil series association.
Southwest................................   Elevations between 961 and 6,660 feet.
                                            Mean slope angle of 37.3 percent.
                                            Lower levels of solar irradiance.
                                            Warm Region III climate with long growing season.
                                            Average annual precipitation total of 53 inches.
                                            Soils primarily of the Chester--Ashe soil series association.
--------------------------------------------------------------------------------------------------------------------------------------------------------

TTB Determination

    TTB concludes that the petition to establish the approximately 
2,400-square mile Appalachian High Country 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, ``Appalachian High 
Country,'' 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 ``Appalachian High Country'' 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 Appalachian High Country AVA on wine labels that include the 
term ``Appalachian High Country,'' as discussed above under Impact on 
Current Wine Labels, TTB is particularly interested in comments 
regarding whether there will be a conflict between the proposed area 
name and currently used brand names. If a commenter believes that a 
conflict will arise, the comment should describe the nature of that 
conflict, including any anticipated negative economic impact that 
approval of the proposed AVA will have on an existing viticultural 
enterprise. TTB is also interested in receiving suggestions for ways to 
avoid conflicts, for example, by adopting a modified or different name 
for the AVA.

Submitting Comments

    You may submit comments on this proposed rule by using one of the 
following three methods (please note that TTB has a new address for 
comments submitted by U.S. Mail):
     Federal e-Rulemaking Portal: You may send comments via the 
online comment form posted with this proposed rule within Docket No. 
TTB-2016-0003 on ``Regulations.gov,'' the Federal e-rulemaking portal, 
at https://www.regulations.gov. A direct link to that docket is 
available under Notice No. 158 on the TTB Web site at https://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. 158 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.

[[Page 26513]]

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-2016-0003 on the 
Federal e-rulemaking portal, Regulations.gov, at https://www.regulations.gov. A direct link to that docket is available on the 
TTB Web site at https://www.ttb.gov/wine/wine-rulemaking.shtml under 
Notice No. 158. You may also reach the relevant docket through the 
Regulations.gov search page at https://www.regulations.gov. For 
information on how to use Regulations.gov, click on the site's ``Help'' 
tab.
    All posted comments will display the commenter's name, organization 
(if any), city, and State, and, in the case of mailed comments, all 
address information, including email addresses. TTB may omit voluminous 
attachments or material that the Bureau considers unsuitable for 
posting.
    You may also view copies of this proposed rule, all related 
petitions, maps and other supporting materials, and any electronic or 
mailed comments that TTB receives about this proposal by appointment at 
the TTB Information Resource Center, 1310 G Street NW., Washington, DC 
20005. You may also obtain copies at 20 cents per 8.5- x 11-inch page. 
Please note that TTB is unable to provide copies of USGS maps or any 
similarly-sized documents that may be included as part of the AVA 
petition. Contact TTB's information specialist at the above address or 
by telephone at 202-453-2265 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.  Appalachian High Country.

    (a) Name. The name of the viticultural area described in this 
section is ``Appalachian High Country''. For purposes of part 4 of this 
chapter, ``Appalachian High Country'' is a term of viticultural 
significance.
    (b) Approved maps. The 46 United States Geological Survey (USGS) 
1:24,000 scale topographic maps used to determine the boundary of the 
Appalachian High Country viticultural area are titled:
    (1) Unicoi, Tenn.--N.C, 1939; photorevised 1978;
    (2) Iron Mountain gap, Tenn.--N.C., 1960; photorevised 1968;
    (3) Johnson City, Tenn., 1959; photorevised 1968;
    (4) Elizabethton, Tenn., 1959; photorevised 1968;
    (5) Watauga Dam, Tenn., 1960;
    (6) Carter, Tenn., 1938; photorevised 1969;
    (7) Keenburg, Tenn., 1960;
    (8) Doe, Tenn., 1938; photorevised 1969;
    (9) Shady Valley, Tenn.--VA., 1960; photorevised 1970; 
photoinspected 1988;
    (10) Laurel Bloomery, Tenn.--VA., 1938; photorevised 1969;
    (11) Grayson, Tenn.--N.C.--VA., 1959; photoinspected 1976;
    (12) Park, N.C.--VA., 1959; photorevised 1978;
    (13) Whitetop Mountain, VA., 1959; photorevised 1978;
    (14) Trout Dale, VA., 1959; photorevised 1978; photoinspected 1988;
    (15) Middle Fox Creek, VA., 1959; photoinspected 1988;
    (16) Cedar Springs, VA., 1959; photorevised 1978; photoinspected 
1988;
    (17) Speedwell, VA., 1968; photorevised 1979;
    (18) Cripple Creek, VA., 1968; photoinspected 1988;
    (19) Austinville, VA., 1965; photorevised 1979; photoinspected 
1982;
    (20) Galax, VA., 1965; photorevised 1984;
    (21) Cumberland Knob, N.C.--VA., 1965; photorevised 1977;
    (22) Lambsburg, VA.--N.C., 1965; photorevised 1977;
    (23) Roaring Gap, N.C., 1971;
    (24) Glade Valley, N.C., 1968;
    (25) Traphill, N.C., 1968;
    (26) Whitehead, N.C., 1968;
    (27) McGrady, N.C., 1968; photoinspected 1984;
    (28) Horse Gap, N.C., 1968;
    (29) Laurel Springs, N.C., 1968;
    (30) Glendale Springs, N.C., 1967;
    (31) Maple Springs, N.C., 1966;
    (32) Deep Gap, N.C., 1967;
    (33) Buffalo Cove, N.C., 1967;
    (34) Globe, N.C., 1959;
    (35) Grandfather Mountain, N.C., 1960; photorevised 1978;
    (36) Newland, N.C., 1960; photorevised 1978;
    (37) Linville Falls, N.C., 1994;
    (38) Ashford, N.C., 1994;
    (39) Little Switzerland, N.C., 1994;
    (40) Spruce Pine, N.C., 1994;
    (41) Celo, N.C., 1994;
    (42) Micaville, N.C., 1960; photorevised 1978;
    (43) Bakersville, N.C.,--Tenn., 1960; photorevised 1978;
    (44) Burnsville, N.C., 1998;
    (45) Huntdale, N.C.--Tenn., 1939; and
    (46) Chestoa, Tenn.--N.C., 1939; photorevised 1978.
    (c) Boundary. The Appalachian High Country viticultural area is 
located in all or portions of Alleghany, Ashe, Avery, Mitchell, and 
Watauga Counties in North Carolina; Carter and Johnson Counties in 
Tennessee; and Grayson County in Virginia. The boundary of the 
Appalachian High Country viticultural area is as described below:
    (1) The beginning point is on the Unicoi map, at the point where 
the Unicoi/Mitchell County line intersects with an unnamed road known 
locally as Unaka Mountain Road near Beauty Spot Gap, Tennessee. From 
the beginning point, proceed northeasterly approximately 7.3 miles 
along the Unicoi/Mitchell County line, crossing onto the Iron Mountain 
Gap map, to the intersection of the Unicoi/Mitchell County line with 
the Carter County line; then
    (2) Proceed northerly along the Unicoi/Carter County line

[[Page 26514]]

approximately 9.3 miles, crossing back onto the Unicoi map and then 
onto the Johnson City map, to the intersection of the Unicoi/Carter 
County line with the 2,000-foot elevation contour, southeast of an 
unnamed road known locally as Whispering Pine Road; then
    (3) Proceed southeasterly along the meandering 2,000-foot elevation 
contour, crossing onto the Unicoi map and then back onto the Johnson 
City map, and continuing onto the Elizabethton map for approximately 19 
miles to the intersection of the elevation contour with an unnamed road 
known locally as Brimer Road near Bremer Hollow; then
    (4) Proceed northwesterly approximately 1,500 feet along Brimer 
Road to an unnamed road known locally as Jenkins Hollow Road; then
    (5) Proceed easterly approximately 1.4 miles along Jenkins Hollow 
Road, crossing the Doe River, to U.S. Route 321 in the town of Valley 
Forge, Tennessee; then
    (6) Proceed north approximately 400 feet along U.S. Route 321 to an 
unnamed road known locally as Ruby Harmon Road; then
    (7) Proceed northeasterly approximately 360 feet along Ruby Harmon 
Road to an unnamed road known locally as Nanny Goat Hill Road; then
    (8) Proceed easterly approximately 0.2 mile along Nanny Goat Hill 
Road to the 1,800-foot elevation contour, east of an unnamed road known 
locally as Gene Mathes Road; then
    (9) Proceed northeasterly approximately 0.4 mile along the 1,800-
foot elevation contour to an unnamed road known locally as Franklin 
Lane; then
    (10) Proceed southerly approximately 0.3 mile along Franklin Lane 
to the 2,000-foot elevation contour; then
    (11) Proceed northeasterly along the meandering 2,000-foot 
elevation contour, crossing over Hardin Branch, Clover Branch, South 
Pierce Branch, and North Pierce Branch, to a fifth, unnamed stream; 
then
    (12) Proceed northerly approximately 0.47 mile along the unnamed 
stream to an unnamed road known locally as Wilbur Dam Road; then
    (13) Proceed southeasterly approximately 0.25 mile along Wilbur Dam 
Road to Wilbur Dam; then
    (14) Proceed northeasterly across Wilbur Dam to the marked 
transmission line; then
    (15) Proceed northerly approximately 0.5 mile along the 
transmission line to the 2,000-foot elevation contour; then
    (16) Proceed northeasterly approximately 19 miles along the 
meandering 2,000-foot elevation contour, crossing over the Watauga Dam 
map and onto the Carter map, and continuing along the 2,000-foot 
elevation contour as it crosses over State Route 91 near Sadie, 
Tennessee, and turns southwesterly, and continuing southwesterly for 
approximately 22.2 miles along the 2,000-foot elevation contour, 
crossing onto the Keenburg map and circling Carter Knob, to the 
intersection of the 2,000-foot elevation contour with the Carter/
Sullivan County line; then
    (17) Proceed southeasterly, then northeasterly, approximately 7 
miles along the Carter/Sullivan County line to an unnamed road known 
locally as National Forest Road 56, near Low Gap, Tennessee; then
    (18) Proceed easterly approximately 0.75 miles along National 
Forest Road 56, crossing onto the Carter map, to the Carter/Sullivan 
County line; then
    (19) Proceed easterly approximately 10.4 miles along the Carter/
Sullivan County line, crossing over the Doe map (northwestern corner) 
and onto the Shady Valley Map, to the intersection of the Carter/
Sullivan County line with the Johnson County line at Rich Knob, 
Tennessee; then
    (20) Proceed northeasterly approximately 13.4 miles along the 
Johnson/Sullivan County line, crossing onto the Laurel Bloomery map, to 
the intersection of the Johnson/Sullivan County line with the 
Washington County line at the Virginia/Tennessee State line; then
    (21) Proceed easterly approximately 10 miles along the Johnson/
Washington County line, crossing onto the Grayson map, to the 
intersection of the Johnson/Washington County line with the Grayson 
County line; then
    (22) Proceed east, then northeasterly, then southeasterly, along 
the Grayson County line, crossing over the Park, Whitetop Mountain, 
Trout Dale, Middle Fox Creek, Cedar Springs, Speedwell, Cripple Creek, 
Austinville, Galax, and Cumberland Knob maps and onto the Lambsburg 
map, to the intersection of the Grayson County line with the Surry 
County line and an unnamed road known locally as Fisher's Peak Road, at 
the Virginia/North Carolina State line; then
    (23) Proceed west along the Grayson/Surry County line, crossing 
back onto the Cumberland Knob map, to Alleghany County line; then
    (24) Proceed southerly, then northwesterly, then southwesterly 
along the Alleghany County line, crossing over the Roaring Gap, Glade 
Valley, Traphill (northeastern corner), Whitehead, McGrady 
(northwestern corner), Horse Gap, and Laurel Springs map, then back 
onto the Horse Gap map and continuing along the Alleghany County line 
on the Horse Gap map to the Ashe/Wilkes County line at Mulberry Gap, 
North Carolina; then
    (25) Proceed westerly, then southwesterly along the Ashe/Wilkes 
County line, crossing over the Glendale Springs and onto the Maple 
Springs map, then back onto the Glendale Springs map, then back onto 
the Maple Springs map, and continuing along the Ashe/Wilkes County line 
on the Maple Springs map to the intersection of the Ashe/Wilkes County 
line and the Watauga County line at Thomkins Knob, North Carolina; then
    (26) Proceed southwesterly along the Watauga/Wilkes County line, 
crossing over the Deep Gap map (southeastern corner) and onto the 
Buffalo Cove map, to the intersection of the Watauga/Wilkes County line 
and the Caldwell County line at White Rock Mountain, North Carolina; 
then
    (27) Proceed west along the Watauga/Caldwell County line, crossing 
over the Globe map and onto the Grandfather Mountain map, to the 
intersection of the Watauga/Caldwell County line with the Avery County 
line at Calloway Peak, North Carolina; then
    (28) Proceed southeasterly approximately 1.8 miles along the 
Caldwell/Avery County line to the boundary of the Blue Ridge Parkway at 
Pilot Knob, North Carolina; then
    (29) Proceed southwesterly approximately 11.6 miles along the Blue 
Ridge Parkway boundary, crossing over the Newland map (southeastern 
corner) and onto the Linville Falls map, to the intersection of the 
parkway boundary with the Avery/Burke County line; then
    (30) Proceed northwesterly, then southwesterly, for a total of 
approximately 4.2 miles along the Avery/Burke County line to the 
McDowell County line; then
    (31) Proceed southerly approximately 5 miles along the Avery/
McDowell County line to the Mitchell County line; then
    (32) Proceed southerly, then southwesterly, along the McDowell/
Mitchell County line, crossing over the Ashford (northwestern corner) 
and Little Switzerland (northeastern corner) maps and onto the Spruce 
Pine map, then back onto the Little Switzerland map and continuing 
along the McDowell/Mitchell County line, crossing onto the Celo map, to 
the intersection of the McDowell/Mitchell County line with the Yancey 
County line; then
    (33) Proceed west then northerly along the Mitchell/Yancey County 
line,

[[Page 26515]]

crossing over the Micaville, Bakersville, Huntdale (southeastern 
corner), and Burnsville maps, then back onto the Huntdale map and 
continuing along the Mitchell/Yancy County line, crossing onto the 
Chestoa map, to the intersection of the Mitchell/Yancey County line 
with the Mitchell/Unicoi County line, which is concurrent with the 
Tennessee/North Carolina State line; then
    (34) Proceed northeasterly along the Mitchell/Unicoi County line, 
crossing back over the Huntsdale (northwestern corner) map and onto the 
Unicoi map, and returning to the beginning point.

    Signed: April 25, 2016.
Mary G. Ryan,
Deputy Administrator.
[FR Doc. 2016-10291 Filed 5-2-16; 8:45 am]
 BILLING CODE 4810-31-P