[Federal Register Volume 81, Number 182 (Tuesday, September 20, 2016)]
[Proposed Rules]
[Pages 64368-64372]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-22635]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 9

[Docket No. TTB-2016-0008; Notice No. 162]
RIN 1513-AC32


Proposed Expansion of the Outer Coastal Plain 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 
expand the approximately 2.25 million-acre ``Outer Coastal Plain'' 
viticultural area in southeastern New Jersey by approximately 32,932 
acres. The established Outer Coastal Plain viticultural area and the 
proposed expansion area do not lie within any other 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 21, 2016.

ADDRESSES: Please send your comments on this notice to one of the 
following addresses:
     Internet: http://www.regulations.gov (via the online 
comment form for this notice as posted within Docket No. TTB-2016-0008 
at ``Regulations.gov,'' the Federal e-rulemaking portal);
     U.S. Mail: Director, Regulations and Rulings Division, 
Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street NW., Box 12, 
Washington, DC 20005; or
     Hand delivery/courier in lieu of mail: Alcohol and Tobacco 
Tax and Trade Bureau, 1310 G Street NW., Suite 400, Washington, DC 
20005.
    See the Public Participation section of this notice for specific 
instructions and requirements for submitting comments, and for 
information on how to request a public hearing or view or obtain copies 
of the petition and supporting materials.

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

SUPPLEMENTARY INFORMATION: 

[[Page 64369]]

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 laws.
    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 American viticultural areas.

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 the establishment of 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 procedures 
to request changes involving existing 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 region 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 affecting 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 Outer Coastal Plain AVA

    TTB received a petition from John and Jan Giunco, owners of 4JG's 
Orchards and Vineyards in Colts Neck, New Jersey, proposing to expand 
the established ``Outer Coastal Plain'' AVA in southeastern New Jersey. 
The Outer Coastal Plain AVA (27 CFR 9.207) was established by T.D. TTB-
58, which published in the Federal Register on February 9, 2007 (72 FR 
6165). The Outer Coastal Plain AVA covers approximately 2.25 million 
acres in Atlantic, Burlington, Camden, Cape May, Cumberland, 
Gloucester, Monmouth, Ocean, and Salem Counties, New Jersey. The Outer 
Coastal Plain AVA and the proposed expansion area are not located 
within any other AVA.
    The proposed expansion area is located in Monmouth County, adjacent 
to the western edge of the existing Outer Coastal Plain AVA boundary, 
and covers approximately 32,932 acres. One commercial vineyard covering 
a total of 30 acres is located within the proposed expansion area. The 
vineyard also has its own winery. The vineyard and the winery both 
existed at the time the Outer Coastal Plain AVA was established in 
2007. The petitioners for the expansion of the AVA claim that when the 
AVA was established, the region of the proposed expansion was intended 
to be included in the AVA but was inadvertently omitted. The 
petitioners state that they only recently learned that they are not 
within the AVA's boundaries. The petition includes a letter from the 
current president of the Outer Coastal Plain Vineyard Association 
stating that the petitioners are vineyard owners who have been members 
of that Association since 2006. The letter also states that the 
association supports the proposed expansion.
    According to the petition, the soils, elevation, and climate of the 
proposed expansion area are similar to those of the established AVA. 
Unless otherwise noted, all information and data pertaining to the 
proposed expansion area contained in this document come from the 
petition and its supporting exhibits.

Name Evidence

    T.D. TTB-58, which established the Outer Coastal Plain AVA, states 
that New Jersey has five defined physiographic regions, and the 
physiographic region in which the established AVA is located is called 
the ``Outer Coastal Plain.'' The expansion petition includes several 
items that directly associate the proposed expansion area with the 
Outer Coastal Plain region. A Web site dedicated to the botany of New 
York, New Jersey, and Connecticut features a listing of recreational 
areas titled ``New Jersey Natural Areas: Outer Coastal Plain.'' \1\ 
Included on this list are parks within the proposed expansion area, 
including Dorbrook Recreation Area in Colts Neck and the Durand Park 
Memorial Arboretum in Freehold Township. An article prepared by the 
Monmouth County Health Department, titled ``Natural and Cultural 
Features of Monmouth County,'' states that the Mount Pleasant Hills 
extend ``from Keyport southwest through Imlaystown to the Delaware Bay 
in Salem County, and [form] the drainage divide between the Inner and 
Outer Coastal Plain.'' \2\ The petitioner notes that because Imlaystown 
is west of the proposed expansion area, this definition of the divide 
between the Inner and Outer

[[Page 64370]]

Coastal Plains places the proposed expansion area within the Outer 
Coastal Plain. A geological and water survey map from the New Jersey 
Department of Environmental Protection shows the location of a well 
within Colts Neck Township near the western limits of the Outer Coastal 
Plain.\3\ Finally, a visitors' guide for southern New Jersey, compiled 
by the South Jersey Tourism Corporation, includes a section on the 
Outer Coastal Plain AVA. The 4JG's Vineyards, which is owned by the 
petitioner, is included in a listing of wineries within the AVA. TTB 
notes that although the petitioner's vineyard is not technically within 
the boundaries of the Outer Coastal Plain AVA, its inclusion in the 
listing demonstrates that tourism organizations and visitors currently 
associate the proposed expansion area with the AVA.
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    \1\ http://nynjctbotany.org/njouter/njoptofc.html.
    \2\ http://co.monmouth.nj.us/documents/121%5CNaturalFeatures.pdf.
    \3\ http://www.state.nj.us/dep/njgs/pricelst/gmseries/gms13-1.pdf.
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Boundary Evidence

    The current Outer Coastal Plain AVA spans the southeastern portion 
of New Jersey, from the Cape May Peninsula to just south of Raritan 
Bay. The Atlantic Ocean forms the eastern boundary. The southwestern 
boundary follows the shore of Delaware Bay. The western boundary 
follows a belt of low hills called cuestas, which separate the 
physiographic region known as the Outer Coastal Plain from the region 
known as the Inner Coastal Plain. A small portion of the Outer Coastal 
Plain AVA's current western boundary forms a rough angle bracket shape 
(``>''), where the land between the upper and lower arms of the ``>'' 
is not within the AVA. The townships of Colts Neck, Freehold, Holmdel, 
and Marlboro, as well as the unincorporated community of Crawford 
Corners, are located within this sharp angle in the AVA boundary.
    The proposed expansion area is located within this sharp angle in 
the Outer Coastal Plain AVA's boundary, with the angle forming the 
northern, eastern, and southern edges of the proposed expansion area. 
The proposed changes would eliminate the ``>'' in the AVA's current 
western boundary by moving the AVA's boundary westward to incorporate 
the land within the ``>'' into the Outer Coastal Plain AVA. The 
proposed boundary change would begin in Freehold, at the intersection 
of Colts Neck Road, West Main Street, and State Route 79, which is the 
beginning point of the bottom segment of the ``>'' in the current AVA 
boundary. However, instead of following Colts Neck Road eastward to 
form the bottom segment of the ``>'', the proposed boundary would 
instead follow State Route 79 northeasterly, then northerly, to the 
unincorporated community of Wickatunk. The proposed boundary would then 
proceed generally east along a series of roads, reconnecting with the 
current AVA boundary at the Garden State Parkway near the community of 
Crawford Corners, which is near the tip of the top segment of the ``>'' 
in the current boundary.
    The proposed expansion area is surrounded by the current Outer 
Coastal Plain AVA to the north, east, and south. The Inner Coastal 
Plain physiographic region of New Jersey, marked by the belt of 
cuestas, begins west of the proposed expansion area. Elevations west of 
the proposed expansion area begin to increase, as shown on the 
elevation map included with the proposed expansion petition.

Distinguishing Features

    According to the proposed expansion petition, the soil, elevation, 
and climate of the proposed expansion area are similar to those of the 
established Outer Coastal Plain AVA.
Soil
    According to T.D. TTB-58, which established the Outer Coastal Plain 
AVA, the soils of the AVA are primarily well-drained, sandy soils 
derived from unconsolidated sediments. The soils are described as 
having low pH levels and low fertility. T.D. TTB-58 did not include the 
names of the most common soil types in the Outer Coastal Plain AVA. The 
proposed expansion petition states that soils within the Outer Coastal 
Plain AVA generally have lower levels of clay than soils outside the 
AVA.
    The expansion petition included soil survey maps from two sample 
sites within the proposed expansion area. The first sample area is 
located in the northwestern portion of the proposed expansion area near 
the proposed new boundary, and the second sample area is in the 
southeastern portion of the proposed expansion area near the current 
AVA's western boundary. The following table, compiled by TTB from data 
provided in the petition, lists the four most common soil types in each 
of the two sample areas and the percentage of the sample area covered 
by each soil type.

                  Soils of the Proposed Expansion Area
------------------------------------------------------------------------
                                                              Percentage
                         Soil type                            of sample
                                                                 area
------------------------------------------------------------------------
                            First Sample Area
------------------------------------------------------------------------
Freehold sandy loam........................................         45.3
Collington sandy loam......................................         11.9
Tinton loamy sand..........................................          9.5
Colts Neck sandy loam......................................          6.9
------------------------------------------------------------------------
                           Second Sample Area
------------------------------------------------------------------------
Tinton loamy sand..........................................         19.2
Collington sandy loam......................................         16.8
Freehold sandy loam........................................         15.9
Colts Neck sandy loam......................................          9.3
------------------------------------------------------------------------

    According to the soil survey information, these four soil types all 
contain large amounts of sand and/or gravel, similar to the soils 
within the Outer Coastal Plain AVA, as described in T.D. TTB-58. 
Additionally, all four of these soils are moderately well-drained to 
well-drained, which is also a characteristic of soils of the Outer 
Coastal Plain AVA. Well-drained soils shed excess water quickly, 
reducing the risk of rot and disease in the vines.
Topography
    T.D. TTB-58 states that the elevations within the Outer Coastal 
Plain AVA are less than 280 feet above sea level. West of the AVA are 
the cuestas, which separate the Outer Coastal Plain from the Inner 
Coastal Plain. Elevations west of this belt of cuestas are higher than 
those within the Outer Coastal Plain AVA. Elevations northwest of the 
AVA can reach as high as 1,680 feet.
    The petition includes a map of elevations within and surrounding 
the proposed expansion area. Within both the proposed expansion area 
and the established AVA, elevations primarily range from 6 feet to 150 
feet. The map shows a small region along the western edge of the 
proposed expansion area that reaches elevations of 250 feet. Similar 
elevations are also shown in small regions along the Outer Coastal 
Plain AVA's current western boundary, where the transition to the 
cuestas begins. The map shows that the elevations within the proposed 
expansion area are within the range of elevations established for the 
Outer Coastal Plain AVA by T.D. TTB-58. The low elevations allow marine 
air from the Atlantic Ocean and Delaware Bay to enter both the AVA and 
the proposed expansion area and moderate the temperatures.

[[Page 64371]]

Climate
    According to T.D. TTB-58, the maritime influence from the Atlantic 
Ocean and Delaware Bay makes the Outer Coastal Plain AVA generally 
warmer than the regions farther inland. As a result of warmer 
temperatures, the growing season within the AVA is also longer than in 
the surrounding regions and averages between 190 and 217 days.
    The proposed expansion petition includes a map that shows the 
length of the growing season within the proposed expansion area and the 
surrounding regions. Within the majority of the proposed expansion 
area, the growing season ranges from 188 to 192 days. The same map 
shows that the majority of the portion of the AVA adjacent to the 
proposed expansion area has a growing season which is also within the 
range of 188 to 192 days. Immediately to the west of the proposed 
expansion area, outside of the Outer Coastal Plain AVA where the 
cuestas begin, the growing season is only between 185 and 188 days. The 
petition states that farther to the north and west, in the higher 
elevations outside both the proposed expansion area and the AVA, the 
growing season length drops to between 163 to 179 days. Because of the 
longer growing season, vineyards within the AVA and the proposed 
expansion area can grow varietals of grapes that require a longer time 
to mature.

TTB Determination

    TTB concludes that the petition to expand the boundaries of the 
established Outer Coastal Plain 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 
expansion area in the proposed regulatory text published at the end of 
this proposed rule.

Maps

    To document the existing and proposed boundaries of the Outer 
Coastal Plain AVA, the petitioner provided a copy of the required maps, 
which are listed below in the proposed regulatory text.

Impact on Current Wine Labels

    For a wine to be labeled with a viticultural area 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 approval of the proposed expansion of the Outer Coastal Plain 
AVA would not affect any other existing viticultural area. The 
expansion of the Outer Coastal Plain AVA would allow vintners to use 
``Outer Coastal Plain'' as an appellation of origin for wines made 
primarily from grapes grown within the proposed expansion area 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 expand the Outer Coastal Plain AVA as proposed. TTB 
is specifically interested in receiving comments on the similarity of 
the proposed expansion area to the established Outer Coastal Plain AVA. 
Please provide specific information in support of your comments.

Submitting Comments

    You may submit comments on this notice of proposed rulemaking 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-
0008 on ``Regulations.gov,'' the Federal e-rulemaking portal, at http://www.regulations.gov. A direct link to that docket is available under 
Notice No. 162 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. 162 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-2016-0008 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. 162. 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

[[Page 64372]]

or material that the Bureau considers unsuitable for posting.
    You may also view copies of this notice of proposed rulemaking, all 
related petitions, maps and other supporting materials, and any 
electronic or mailed comments that TTB receives about this proposal by 
appointment at the TTB Information Resource Center, 1310 G Street NW., 
Washington, DC 20005. You may also obtain copies at 20 cents per 8.5- x 
11-inch page. Please note that TTB is unable to provide copies of USGS 
maps or other similarly-sized documents that may be included as part of 
the AVA petition. Contact TTB's information specialist at the above 
address or by telephone at 202-453-2265 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 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. Section 9.207 is amended by revising paragraph (b) introductory 
text, adding paragraphs (b)(8) through (10), revising paragraphs 
(c)(16) and (17), redesignating paragraph (c)(18) through (22) as 
paragraphs (c)(21) through (25), and adding new paragraphs (c)(18) 
through (20).
    The revisions and additions read as set forth below:


Sec.  9.207  Outer Coastal Plain.

* * * * *
    (b) Approved maps. The appropriate maps for determining the 
boundary of the Outer Coastal Plain viticultural area are 10 United 
States Geological Survey topographic maps. They are titled:
* * * * *
    (8) Freehold, New Jersey, 2014, 1: 24,000 scale;
    (9) Marlboro, New Jersey, 2014, 1:24,000 scale; and
    (10) Keyport, New Jersey-New York, 2014, 1:24,000 scale.
    (c) * * *
    (16) Continue northeasterly on CR 537, crossing onto the Freehold, 
New Jersey, map, to the intersection of CR 537 (known locally as W. 
Main Street) and State Route 79 (known locally as S. Main Street) in 
Freehold; then
    (17) Proceed northeasterly, then northerly, along State Route 79, 
crossing onto the Marlboro, New Jersey, map to the intersection of 
State Route 79 and Pleasant Valley Road in Wickatunk; then
    (18) Proceed northeasterly, then southeasterly along Pleasant 
Valley Road to the road's intersection with Schank Road, south of 
Pleasant Valley; then
    (19) Proceed easterly along Schank Road to the road's intersection 
with Holmdel Road; then
    (20) Proceed northerly along Holmdel Road, crossing onto the 
Keyport, New Jersey-New York map, to the road's intersection with the 
Garden State Parkway, north of Crawford Corners; then
* * * * *

    Dated: September 14, 2016.
John J. Manfreda,
Administrator.
[FR Doc. 2016-22635 Filed 9-19-16; 8:45 am]
 BILLING CODE 4810-31-P