[Federal Register Volume 81, Number 174 (Thursday, September 8, 2016)]
[Proposed Rules]
[Pages 62047-62052]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-21586]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 9

[Docket No. TTB-2016-0007; Notice No. 161]
RIN 1513-AC26


Proposed Establishment of the Cape May Peninsula 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 126,635-acre ``Cape May Peninsula'' viticultural area in 
Cape May and Cumberland Counties, New Jersey. The proposed viticultural 
area lies entirely within the Outer Coastal Plain 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 November 7, 2016.

ADDRESSES: Please send your comments on this notice to one of the 
following addresses:
     Internet: https://www.regulations.gov (via the online 
comment form for this notice as posted within Docket No. TTB-2016-0007 
at ``Regulations.gov,'' the Federal e-rulemaking portal);
     U.S. Mail: Director, Regulations and Rulings Division, 
Alcohol and Tobacco

[[Page 62048]]

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: Kate M. Bresnahan, 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. 151.

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, 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 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;
     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.

Cape May Peninsula Petition

    TTB received a petition from Alfred Natali, owner of Natali 
Vineyards, LLC, on behalf of the ad hoc Cape May Wine Growers 
Association, proposing the establishment of the ``Cape May Peninsula'' 
AVA. The proposed Cape May Peninsula AVA covers portions of Cape May 
and Cumberland Counties, New Jersey. The proposed AVA lies entirely 
within the established Outer Coastal Plain AVA (27 CFR 9.207) and does 
not overlap any other existing or proposed AVA. The proposed Cape May 
Peninsula AVA contains 126,635 acres, with 6 commercially-producing 
vineyards covering approximately 115 acres distributed throughout the 
proposed AVA, and an additional 147 vineyard acres planned within the 
proposed AVA in the next few years. Grape varieties planted within the 
proposed AVA include Albari[ntilde]o, Dolcetto, Tempranillo, Nebbiolo, 
Merlot, Barbera, Moscato, Malvasia, and Viognier.
    According to the petition, the distinguishing features of the 
proposed Cape May Peninsula AVA include its temperature and soils. 
Unless otherwise noted, all information and data pertaining to the 
proposed AVA contained in this document are from the petition for the 
proposed Cape May Peninsula AVA and its supporting exhibits.

Name Evidence

    The proposed Cape May Peninsula AVA is located in southeastern New 
Jersey on Cape May, named after Dutch explorer Captain Cornelius May. 
Captain May began exploring the Delaware Bay and its surrounding areas 
including the Cape, which he named after himself, in 1620. The first 
settlement in Cape May County, in 1650, was the whaling community of 
Town Bank, just north of Cape May Point.
    The petitioner provided several examples of the current use of 
``Cape May Peninsula'' to refer to the region of the proposed AVA. A 
U.S. Fish and Wildlife Service brochure describing the wildlife of the 
region is titled ``The Cape May Peninsula Is Not Like the Rest of New 
Jersey.'' Two scientific articles describing birds found in the region 
are titled ``The Influence of Weather, Geography, and Habitat on 
Migrating Raptors on Cape May Peninsula'' \1\ and ``Woodcock Banding on 
the Cape May Peninsula, New Jersey.'' \2\ Finally, the petitioner 
provided two photos of the region from a commercial stock photo Web 
site which are titled ``Aerial view of Cape May Peninsula, New Jersey'' 
and ``Salt marsh landscape, Cape May Peninsula, New Jersey.''
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    \1\ Niles, Lawrence J., Joanna Berger, and Kathleen E. Clark. 
1996. The influence of weather, geography, and habitat on migrating 
raptors on Cape May Peninsula. The Condor. 98: 382-394.
    \2\ Rieffenberger, Joseph C., and Fred Ferrigno. 1970. Bird-
Banding. 41: 1-10.
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    The petitioner also provided multiple examples of the current use 
of ``Cape May'' to refer to the region of the proposed AVA. For 
example, numerous municipalities use the name ``Cape May,'' including: 
Cape May County, Cape May Courthouse, Cape May Point, West Cape May, 
and North Cape May.

[[Page 62049]]

Civic organizations such as the Cape May County Beach Plum Association 
and the Cape May and Cape May County Chamber of Commerce use the ``Cape 
May'' name, as does the Cape May County Board of Agriculture. In the 
Yellow Pages, over 100 entries contain the ``Cape May'' name, from Cape 
May Arcade to Cape May Wicker. Finally, one of the wineries in the 
proposed AVA is called ``Cape May Winery and Vineyards.''

Boundary Evidence

    The northern and northwestern boundaries of the proposed Cape May 
Peninsula AVA separate the proposed AVA from the New Jersey Pinelands, 
in which development is severely restricted by law. While permitted in 
the New Jersey Pinelands, grape growing is difficult due to extremely 
acidic soils. The eastern, western, and southern boundaries separate 
the proposed AVA from the wetlands and coastal communities along the 
Delaware Bay and Atlantic Ocean, which are unsuitable for viticulture 
due to marshy conditions and urban development. The Delaware Bay 
borders the proposed AVA to the south and west, and the Atlantic Ocean 
is to the east of the proposed AVA.

Distinguishing Features

    The distinguishing features of the proposed Cape May Peninsula AVA 
are its temperature and soils.
Temperature
    According to the petition, temperature is the most important 
distinguishing feature of the proposed Cape May Peninsula AVA. The 
petitioner compared temperature data from Cape May County Airport, 
Woodbine Airport, and a U.S. Department of Agriculture site in 
Swainton, New Jersey, all within the proposed AVA, with temperature 
data from Millville Airport, the southernmost weather station in the 
Outer Coastal Plain AVA outside the proposed AVA.
    The petition included information on growing degree days (GDD) \3\ 
from both inside and outside the proposed AVA. GDDs are important to 
viticulture because they represent how often daily temperatures rise 
above 50 [deg]F, which is the minimum temperature required for active 
vine growth and fruit development. Inside the proposed AVA, Cape May 
Airport and Swainton have averages of 3,491 GDDs and 3,331 GDDs, 
respectively, making the proposed AVA a Winkler Region III, which is 
defined as between 3,001 and 3,500 GDDs.\4\ Millville Airport, outside 
of the proposed AVA, has an average of 3,516 GDDs per year, making that 
area a warmer Winkler Region IV, which is defined as between 3,501 and 
4,000 GDDs.
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    \3\ 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.
    \4\ The GDD data for Cape May Airport and Millville Airport was 
recorded between 1998 and 2013. The GDD data for Swainton was 
recorded between 1996 and 2013.
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    However, the petition states that comparing only the average number 
of GDDs within and outside the proposed AVA can be misleading when it 
comes to determining the length of the growing season and the types of 
grapes that can grow inside and outside the proposed AVA. For example, 
the petition notes significant temperature differences in terms of 
extreme temperatures. The average summertime high temperature at Cape 
May Airport is 94 [deg]F (F), while the average summertime high 
temperature at Millville Airport is 98 [deg]F.\5\ Average summertime 
high temperatures for Woodbine Airport and Swainton are not provided in 
the petition. The average wintertime low temperatures at Woodbine 
Airport, Swainton, and Cape May Airport are 7 [deg]F, 9 [deg]F, and 12 
[deg]F, respectively. The average wintertime low temperature at 
Millville Airport is 3 [deg]F.\6\ Plus 5 [deg]F to minus 5 [deg]F is 
the killing range for all but the most cold-hardy Vitis vinifera vines.
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    \5\ Extreme high temperature data for Cape May Airport and 
Millville Airport was recorded between 1998 and 2013.
    \6\ Extreme low temperature data for Woodbine Airport and 
Swainton was recorded between 2005 and 2014. Extreme low temperature 
data for Cape May Airport and Millville Airport was recorded between 
1998 and 2014.
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    Another significant indicator of the climate difference between the 
proposed Cape May Peninsula AVA and the existing Outer Coastal Plain 
AVA is the number of frost-free days. A comparison of weather data from 
Millville and Swainton shows that the average number of frost-free days 
at Millville is 179, while the average number of frost-free days at 
Swainton is 207.\7\ At Swainton, the last freeze usually occurs around 
April 15 and the first frost usually occurs around November 1. At 
Millville, the last freeze usually occurs in late April and the first 
frost usually occurs in mid-October. Due to the above differences in 
frost-free days and GDD totals, the proposed AVA accumulates fewer GDDs 
over a longer growing season than the Outer Coastal Plain AVA 
accumulates in a shorter season.
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    \7\ The average number of frost-free days per year at Millville 
Airport is based on data recorded between 1998 and 2013. The average 
number of frost-free days per year at Swainton is based on data 
recorded between 1996 and 2013.
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    The combination of warmer wintertime temperatures and a longer 
growing season explains the proposed AVA's ability to grow cold-tender 
Vitis vinifera (more than 90 percent of its plantings) in preference to 
the hybrids and native plants grown throughout the existing Outer 
Coastal Plain AVA.
Soils
    The soils in the proposed AVA are mostly loamy sand, whereas the 
soils in the existing Outer Coastal Plain AVA are a sandy loam. 
According to the petition, soils best suited to viticulture are well-
drained, where the water table is a minimum of six feet or deeper. 
These types of soils include Downer, Evesboro, Sassafras, Fort Mott, 
Hooksan, Swainton, and Aura. All of these soils are present in the 
proposed AVA and in the Outer Coastal Plain AVA; however, the Outer 
Coastal Plain AVA contains additional soils not found in the proposed 
AVA, including Hammonton, Waterford, Galetown, and Metapeake.
    The soils in the 126,635-acre proposed AVA are as follows:
     Hydric (unsuited to farming): 51,609 acres;
     Arable (suited to berry-type farming): 48,454 acres;
     Well-drained (suited to viticulture): 16,381 acres; and
     Municipal parks, airports, freshwater lakes, ponds, and 
tidal creeks: 10,191 acres.

The Cape May County Planning Department has identified the areas with 
the most well-drained soils as prospective sites for viticulture.
    The New Jersey Pinelands to the north and west of the proposed AVA 
is an area of dense pine forest with acidic soils that are unsuitable 
for most farming, including viticulture. The Pinelands cover 22 percent 
of the state and nearly half of the existing Outer Coastal Plain AVA. 
The Pinelands consist of pygmy pines, swamp cedars, insect-eating 
plants, orchids, unique species of reptiles, endangered birds, self-
contained springs, lakes, streams and bogs, and a sandy, extremely 
acidic and nutrient-poor surface soil. The only serious commercial 
crops in the Pinelands are acid-loving cranberries and blueberries. The 
petition states that during colonial times, people attempted to farm 
this land but failed due to the infertility of the soil and the low pH 
(the mean pH for the Pinelands is 4.4; grape vines require a pH in the 
6 to 7 range). In order to improve the quality of the

[[Page 62050]]

soils in the Pinelands, one would have to apply and incorporate large 
amounts of lime over a long period of time.
Summary of Distinguishing Features
    In summary, the temperature and soils of the proposed Cape May 
Peninsula AVA distinguish it from the surrounding regions. The proposed 
AVA is a Winkler Region III climate, while Millville, located in the 
existing Outer Coastal Plain AVA, is a Winkler Region IV climate. The 
proposed AVA also experiences more frost-free days and a longer growing 
season than the rest of the Outer Coastal Plain AVA. Warmer wintertime 
low temperatures and a longer growing season explain the proposed AVA's 
ability to grow Vitis vinifera grape varieties, which cannot grow in 
the cooler winter climate found throughout most of the Outer Coastal 
Plain AVA. Finally, due to sufficient soil depth above the water table, 
which allows for deep vine growth, the proposed AVA is suitable for 
growing grapes, while the New Jersey Pinelands to the north and west of 
the proposed AVA are unsuitable for most farming due to tremendously 
acidic soils that make the area infertile.

Comparison of the Proposed Cape May Peninsula AVA to the Existing Outer 
Coastal Plain AVA

Outer Coastal Plain AVA
    T.D. TTB-58, which published in the Federal Register on February 9, 
2007 (72 FR 6165), established the Outer Coastal Plain AVA in all of 
Cumberland, Cape May, Atlantic, and Ocean Counties and portions of 
Salem, Gloucester, Camden, Burlington, and Monmouth Counties, New 
Jersey. The Outer Coastal Plain AVA is described in T.D. TTB-58 as 
having well-drained soils with a low pH, elevations below 280 feet 
above sea level, and a generally warm climate strongly influenced by 
the Atlantic Ocean and the Delaware Bay.
    Despite their differences, the proposed Cape May Peninsula AVA and 
the existing Outer Coastal Plain AVA have broadly similar 
characteristics. Developed during the Pleistocene Epoch, the surface 
layers in the proposed Cape May Peninsula AVA are composed of sand, 
gravel, clay-based silt, and peat. This is similar to the surface 
layers of the Outer Coastal Plain AVA. Additionally, both the 
established Outer Coastal Plain AVA and the proposed AVA have lower 
elevations, soils with lower amounts of fine silt, and longer growing 
seasons than the region outside the established AVA. Therefore, the 
proposed Cape May Peninsula AVA appears to share enough similarities to 
remain within the established Outer Coastal Plain AVA.

TTB Determination

    TTB concludes that the petition to establish the 126,635-acre Cape 
May Peninsula AVA merits consideration and public comment, as invited 
in this notice of proposed rulemaking.

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, ``Cape May 
Peninsula,'' 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, 
wine bottlers using the name ``Cape May Peninsula'' 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 if this proposed rule is 
adopted as a final rule. TTB is not proposing ``Cape May,'' standing 
alone, as a term of viticultural significance if the proposed AVA is 
established, in order to avoid a potential conflict with a current 
label holder. Accordingly, the proposed part 9 regulatory text set 
forth in this document specifies only the full name ``Cape May 
Peninsula'' as a term of viticultural significance for the purposes of 
part 4 of the TTB regulations.
    The approval of the proposed Cape May Peninsula AVA would not 
affect any existing AVA, and any bottlers using ``Outer Coastal Plain'' 
as an appellation of origin or in a brand name for wines made from 
grapes grown within the Outer Coastal Plain would not be affected by 
the establishment of this new AVA. The establishment of the proposed 
Cape May Peninsula AVA would allow vintners to use ``Cape May 
Peninsula'' and ``Outer Coastal Plain'' as appellations of origin for 
wines made from grapes grown within the proposed Cape May Peninsula 
AVA, if the wines meet the eligibility requirements for the 
appellation.

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. In addition, given the proposed Cape May 
Peninsula AVA's location within the existing Outer Coastal Plain AVA, 
TTB is interested in comments on whether the evidence submitted in the 
petition regarding the distinguishing features of the proposed AVA 
sufficiently differentiates it from the existing Outer Coastal Plain 
AVA. TTB is also interested in comments on whether the geographic 
features of the proposed AVA are so distinguishable from the 
surrounding Outer Coastal Plain AVA that the proposed Cape May 
Peninsula AVA should no longer be part of that AVA. Please provide any 
available specific information in support of your comments.
    Because of the potential impact of the establishment of the 
proposed Cape May Peninsula AVA on wine labels that include the term 
``Cape May Peninsula'' 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 AVA 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

[[Page 62051]]

conflicts, for example, by adopting a modified or different name for 
the AVA.

Submitting Comments

    You may submit comments on this notice by using one of the 
following three methods:
     Federal e-Rulemaking Portal: You may send comments via the 
online comment form posted with this notice within Docket No. TTB-2016-
0007 on ``Regulations.gov,'' the Federal e-rulemaking portal, at 
https://www.regulations.gov. A direct link to that docket is available 
under Notice No. 161 on the TTB Web site at https://www.ttb.gov/wine/wine_rulemaking.shtml">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 
notice. Your comments must reference Notice No. 161 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 state if you are commenting for 
yourself 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 notice, selected 
supporting materials, and any online or mailed comments received about 
this proposal within Docket No. TTB-2016-0007 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 https://www.ttb.gov/wine/wine_rulemaking.shtml under Notice No. 161. 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 notice, 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 Public Reading Room, 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 Public Reading Room at the above address or by telephone 
at 202-822-9904 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 a viticultural area 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

    Kate M. Bresnahan of the Regulations and Rulings Division drafted 
this notice of proposed rulemaking.

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. __  Cape May Peninsula.

    (a) Name. The name of the viticultural area described in this 
section is ``Cape May Peninsula''. For purposes of part 4 of this 
chapter, ``Cape May Peninsula'' is a term of viticultural significance.
    (b) Approved maps. The 11 United States Geological Survey (USGS) 
1:24,000 scale topographic maps used to determine the boundary of the 
Cape May Peninsula viticultural area are titled:
    (1) Ocean City, New Jersey, 1989;
    (2) Marmora, New Jersey, 1989;
    (3) Sea Isle City, New Jersey, 1952; photorevised, 1972;
    (4) Woodbine, New Jersey, 1958; photorevised, 1972;
    (5) Stone Harbor, New Jersey, 1955; photorevised, 1972;
    (6) Wildwood, New Jersey, 1955; photorevised, 1972;
    (7) Cape May, New Jersey, 1954; photorevised, 1972;
    (8) Rio Grande, New Jersey, 1956; photorevised, 1972;
    (9) Heislerville, New Jersey, 1957; photorevised, 1972;
    (10) Port Elizabeth, New Jersey, 1956; photorevised, 1972; and
    (11) Tuckahoe, New Jersey, 1956; photorevised, 1972.
    (c) Boundary. The Cape May Peninsula viticultural area is located 
in

[[Page 62052]]

Cape May and Cumberland Counties, New Jersey. The boundary of the Cape 
May Peninsula viticultural area is as described below:
    (1) The beginning point is on the Ocean City quadrangle at the 
intersection of the 10-foot elevation contour and the Garden State 
Parkway, on the southern shore of Great Egg Harbor, northwest of 
Golders Point. Proceed southeast, then generally southwest along the 
meandering 10-foot elevation contour, crossing onto the Marmora 
quadrangle, then onto the Sea Isle City quadrangle, to the intersection 
of the 10-foot elevation contour with an unnamed road known locally as 
Sea Isle Boulevard; then
    (2) Proceed northwesterly along Sea Isle Boulevard to the 
intersection of the road with U.S. Highway 9; then
    (3) Proceed southwesterly along U.S. Highway 9 to the intersection 
of the highway with the 10-foot elevation contour south of Magnolia 
Lake; then
    (4) Proceed generally southwesterly along the meandering 10-foot 
elevation contour, crossing onto the Woodbine quadrangle, then briefly 
back onto the Sea Isle City quadrangle, then back onto the Woodbine 
quadrangle, to the intersection of the 10-foot elevation contour with 
the western span of the Garden State Parkway east of Clermont; then
    (5) Proceed southwest along the Garden State Parkway to the 
intersection of the road with Uncle Aarons Creek; then
    (6) Proceed westerly (upstream) along Uncle Aarons Creek to the 
intersection of the creek with the 10-foot elevation contour near the 
headwaters of the creek; then
    (7) Proceed easterly, then southwesterly along the 10-foot 
elevation contour, crossing onto the Stone Harbor quadrangle, then onto 
the northwesternmost corner of the Wildwood quadrangle, then onto Cape 
May quadrangle, to the intersection of the 10-foot elevation contour 
with State Route 109 and Benchmark (BM) 8, east of Cold Spring; then
    (8) Proceed southeast, then south, along State Route 109 to the 
intersection of the road with the north bank of the Cape May Canal; 
then
    (9) Proceed northwest along the north bank of the Cape May Canal to 
the intersection of the canal with the railroad tracks (Pennsylvania 
Reading Seashore Lines); then
    (10) Proceed south along the railroad tracks, crossing the canal, 
to the intersection of the railroad tracks with the south bank of the 
Cape May Canal; then
    (11) Proceed east along the canal bank to the intersection of the 
canal with Cape Island Creek; then
    (12) Proceed south, then northwest along the creek to the 
intersection of the creek with a tributary running north-south west of 
an unnamed road known locally as 1st Avenue; then
    (13) Proceed north along the tributary to its intersection with 
Sunset Boulevard; then
    (14) Proceed northwest along Sunset Boulevard to the intersection 
of the road with Benchmark (BM) 6; then
    (15) Proceed south in a straight line to the shoreline; then
    (16) Proceed west, then northwest, then northeast along the 
shoreline, rounding Cape May Point, and continuing northeasterly along 
the shoreline, crossing onto the Rio Grande quadrangle, then onto the 
Heislerville quadrangle, to the intersection of the shoreline with West 
Creek; then
    (17) Proceed generally north along the meandering West Creek, 
passing through Pickle Factory Pond and Hands Millpond, and continuing 
along West Creek, crossing onto the Port Elizabeth quadrangle, and 
continuing along West Creek to the fork in the creek north of Wrights 
Crossway Road; then
    (18) Proceed along the eastern fork of West Creek to the cranberry 
bog; then
    (19) Proceed through the cranberry bog and continue northeasterly 
along the branch of West Creek that exits the cranberry bog to the 
creek's terminus south of an unnamed road known locally as Joe Mason 
Road; then
    (20) Proceed northeast in a straight line to Tarkiln Brook 
Tributary; then
    (21) Proceed easterly along Tarkiln Brook Tributary, passing 
through the cranberry bog, crossing onto the Tuckahoe quadrangle, and 
continuing along Tarkiln Brook tributary to its intersection with the 
Tuckahoe River and the Atlantic-Cape May County line; then
    (22) Proceed easterly along the Atlantic-Cape May County line, 
crossing onto the Marmora and Cape May quadrangles, to the intersection 
of the Atlantic-Cape May County line with the Garden State Parkway on 
the Cape May quadrangle; then
    (23) Proceed south along the Garden State Parkway, returning to the 
beginning point.

John J. Manfreda,
Administrator.
[FR Doc. 2016-21586 Filed 9-7-16; 8:45 am]
 BILLING CODE 4810-31-P