[Federal Register Volume 84, Number 139 (Friday, July 19, 2019)]
[Rules and Regulations]
[Pages 34782-34785]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-15353]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 9

[Docket No. TTB-2018-0009; T.D. TTB-156; Ref: Notice No. 178]
RIN 1513-AC43


Establishment of the Crest of the Blue Ridge Henderson County 
Viticultural Area

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

ACTION: Final rule; Treasury decision.

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SUMMARY: The Alcohol and Tobacco Tax and Trade Bureau (TTB) establishes 
the approximately 215-square mile ``Crest of the Blue Ridge Henderson 
County'' viticultural area in Henderson County, North Carolina. The 
Crest of the Blue Ridge Henderson County viticultural area is not 
located within any other established viticultural area. TTB designates 
viticultural areas to allow vintners to better describe the origin of 
their wines and to allow consumers to better identify wines they may 
purchase.

DATES: This final rule is effective August 19, 2019.

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; telephone 202-453-1039, ext. 
175.

SUPPLEMENTARY INFORMATION:

Background on Viticultural Areas

TTB Authority

    Section 105(e) of the Federal Alcohol Administration Act (FAA Act), 
27 U.S.C. 205(e), authorizes the Secretary of the Treasury to prescribe 
regulations for the labeling of wine, distilled spirits, and malt 
beverages. The FAA Act provides that these regulations should, among 
other things, prohibit consumer deception and the use of misleading 
statements on labels and ensure that labels provide the consumer with 
adequate information as to the identity and quality of the product. The 
Alcohol and Tobacco Tax and Trade Bureau (TTB) administers the FAA Act 
pursuant to section 1111(d) of the Homeland Security Act of 2002, 
codified at 6 U.S.C. 531(d). The Secretary has delegated various 
authorities through Treasury Department Order 120-01, dated December 
10, 2013 (superseding Treasury Order 120-01, dated January 24, 2003), 
to the TTB Administrator to perform the functions and duties in the 
administration and enforcement of these laws.
    Part 4 of the TTB regulations (27 CFR part 4) authorizes the 
establishment of definitive viticultural areas and regulates 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 
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.

Crest of the Blue Ridge Henderson County Petition

    TTB received a petition from Mark Williams, the executive director 
of Agribusiness Henderson County, and Barbara Walker, the county 
extension support specialist for North Carolina Cooperative Extension, 
on behalf of local vineyards and winery operators, proposing the 
establishment of the ``Crest of the Blue Ridge Henderson County'' AVA 
in Henderson County, North Carolina. The proposed Crest of the Blue 
Ridge Henderson County AVA covers approximately 215 square miles and is 
not located within any other AVA. There are 14 commercial vineyards 
covering a total of approximately 70 acres within the proposed AVA, as 
well as two bonded wineries. According to the petition, an additional 
55 acres of vineyards are planned for planting in the next five years.
    According to the petition, the distinguishing features of the 
proposed AVA are its climate and topography--specifically its 
elevation. Elevation can influence such climatic factors as 
temperature, length of growing season, and precipitation. The petition 
describes the Crest of the Blue Ridge Henderson County AVA as 
straddling the Eastern Continental Divide, colloquially known as the 
Crest of the Blue Ridge. The crest separates two

[[Page 34783]]

physiographic provinces, the Blue Ridge Escarpment, which covers the 
southern and eastern portions of the proposed AVA, and the Blue Ridge 
Plateau, which covers the northern and western portions of the proposed 
AVA. The Blue Ridge Escarpment rises steeply, so that this region of 
the proposed AVA has an average elevation more than 950 feet higher 
than the region immediately south, and more than 1,200 feet higher than 
the region immediately east. To the northwest of the proposed AVA lies 
the Asheville Basin, along the valley through which the French Broad 
River flows. Although the Asheville Basin sits at a similar elevation 
to the proposed AVA, the hills and mountains surrounding the Asheville 
Basin rise to some of the highest elevations of the entire Appalachian 
Chain, with an average elevation more than 800 feet higher than in the 
proposed AVA. Meanwhile, the areas to the west of the proposed AVA rise 
an average of more than 400 feet higher than the proposed AVA. Thus, 
the proposed AVA's position straddling the Crest of the Blue Ridge 
gives it an intermediate elevation, higher than the areas to the south 
and east, while lower than the areas to the north and west.
    Similarly, the proposed AVA's position along the Crest of the Blue 
Ridge gives it a distinct climate compared to surrounding regions. The 
proposed AVA, along with the similarly situated Asheville Basin, has an 
average temperature in the warm 63-67 [deg]F range, compared to the 
regions immediately east and south, which have hotter average 
temperatures in the 67-72 [deg]F range. The regions to the west, and 
the mountains and hills immediately north, of the proposed AVA have 
cooler average temperatures in the 59-63 [deg]F range. The proposed 
AVA's transitional temperature and elevation from the higher and cooler 
regions to the north and west, and the lower and warmer region to the 
south and east, are reflected in precipitation levels and growing 
season length. The growing season of the proposed AVA spans 200-220 
days, shorter than the 220-240 day growing season to the south and 210-
240 day growing season to the east of the proposed AVA, but slightly 
longer than the 180-210 day growing season to the north (excluding the 
Asheville Basin), and the 170-210 day growing season to the west of the 
proposed AVA. The length of the growing season affects the grape 
varietals that can be grown in a region, and the petitioners single out 
such grape varietals as Cabernet Franc, Cabernet Sauvignon, Chardonnay, 
and Vidal Blanc as good fits for the proposed AVA, given the length of 
its growing season.
    Similarly, the proposed AVA has average annual precipitation levels 
lower than the regions east, south, and west of the proposed AVA, but 
higher than the regions north of the proposed AVA, including the 
Asheville Basin, the latter which has average annual precipitation 
levels approximately fifteen inches lower than the proposed AVA. 
According to the petition, these intermediate precipitation levels are 
viticulturally significant, because excessive rainfall can cause excess 
vine and leaf growth, promote fungal disease, and attract insects, 
whereas too little rainfall can stress or even kill the vines.

Notice of Proposed Rulemaking and Comments Received

    TTB published Notice No. 178 in the Federal Register on December 6, 
2018 (83 FR 62743), proposing to establish the Crest of the Blue Ridge 
Henderson County AVA. In the notice, TTB summarized the evidence from 
the petition regarding the name, boundary, and distinguishing features 
for the proposed AVA. The notice also compared the distinguishing 
features of the proposed AVA to the surrounding areas. For a detailed 
description of the evidence relating to the name, boundary, and 
distinguishing features of the proposed AVA, and for a detailed 
comparison of the distinguishing features of the proposed AVA to the 
surrounding areas, see Notice No. 178. In Notice No. 178, TTB solicited 
comments on the accuracy of the name, boundary, and other required 
information submitted in support of the petition. The comment period 
closed on February 4, 2019.

Comments Received

    In response to Notice No. 178, TTB received five comments. 
Commenters included the general manager of a local vineyard, a local 
resident, wine consumers, and Congressman Mark Meadows of North 
Carolina.
    All of the comments supported the proposed AVA, generally due to 
the potential of the AVA designation to raise consumer and industry 
awareness of the distinctive nature of locally grown wines. The 
comments did not raise any new issues concerning the proposed AVA. TTB 
received no comments opposing the establishment of the Crest of the 
Blue Ridge Henderson County AVA.

TTB Determination

    After careful review of the petition and the comments received in 
response to Notice No. 178, TTB finds that the evidence provided by the 
petitioner supports the establishment of the Crest of the Blue Ridge 
Henderson County AVA. Accordingly, under the authority of the FAA Act, 
section 1111(d) of the Homeland Security Act of 2002, and parts 4 and 9 
of the TTB regulations, TTB establishes the ``Crest of the Blue Ridge 
Henderson County'' AVA in Henderson County, North Carolina, effective 
30 days from the publication date of this document.

Boundary Description

    See the narrative description of the boundary of the Crest of the 
Blue Ridge Henderson County AVA in the regulatory text published at the 
end of this final rule.

Maps

    The petitioner provided the required maps, and they are listed 
below in the regulatory text.

Impact on Current Wine Labels

    Part 4 of the TTB regulations prohibits any label reference on a 
wine that indicates or implies an origin other than the wine's true 
place of origin. For a wine to be labeled with an AVA name or with a 
brand name that includes an AVA name, at least 85 percent of the wine 
must be derived from grapes grown within the area represented by that 
name, and the wine must meet the other conditions listed in 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 27 CFR 4.39(i)(2) for details.
    With the establishment of this AVA, its name, ``Crest of the Blue 
Ridge Henderson County'' 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 regulation clarifies this point. 
Consequently, wine bottlers using the name ``Crest of the Blue Ridge 
Henderson County'' in a brand name, including a trademark, or in 
another label reference as to the origin of the wine, will have to 
ensure that the product is eligible to use the AVA name as an 
appellation of origin. TTB is not designating ``Crest of the Blue 
Ridge,'' standing alone, or ``Blue Ridge,''

[[Page 34784]]

standing alone, as terms of viticultural significance, because the Blue 
Ridge Mountains and the ridgeline forming the Crest of the Blue Ridge 
both cover a multi-State area significantly larger than the region of 
the AVA, which lies entirely within Henderson County, North Carolina. 
The establishment of the Crest of the Blue Ridge Henderson County AVA 
will not affect any existing AVA. The establishment of the Crest of the 
Blue Ridge Henderson County AVA will allow vintners to use ``Crest of 
the Blue Ridge Henderson County'' as an appellation of origin for wines 
made primarily from grapes grown within the Crest of the Blue Ridge 
Henderson County AVA if the wines meet the eligibility requirements for 
the appellation.

Regulatory Flexibility Act

    TTB certifies that this regulation will not have a significant 
economic impact on a substantial number of small entities. The 
regulation imposes no new reporting, recordkeeping, or other 
administrative requirement. Any benefit derived from the use of an AVA 
name would be the result of a proprietor's efforts and consumer 
acceptance of wines from that area. Therefore, no regulatory 
flexibility analysis is required.

Executive Order 12866

    It has been determined that this final 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

    Trevar D. Kolodny of the Regulations and Rulings Division drafted 
this final rule.

List of Subjects in 27 CFR Part 9

    Wine.

The Regulatory Amendment

    For the reasons discussed in the preamble, TTB amends title 27, 
chapter I, part 9, Code of Federal Regulations, as follows:

PART 9--AMERICAN VITICULTURAL AREAS

0
1. The authority citation for part 9 continues to read as follows:

    Authority:  27 U.S.C. 205.

Subpart C--Approved American Viticultural Areas

0
2. Add Sec.  9.266 to read as follows:


Sec.  9.266   Crest of the Blue Ridge Henderson County.

    (a) Name. The name of the viticultural area described in this 
section is ``Crest of the Blue Ridge Henderson County''. For purposes 
of part 4 of this chapter, ``Crest of the Blue Ridge Henderson County'' 
is a term of viticultural significance.
    (b) Approved maps. The nine United States Geological Survey (USGS) 
1:24,000 scale topographic maps used to determine the boundary of the 
Crest of the Blue Ridge Henderson County viticultural area are titled:
    (1) Black Mountain, North Carolina, 1941; photorevised 1978;
    (2) Bat Cave, North Carolina, 1997;
    (3) Cliffield Mountain, North Carolina, 1946; photorevised 1991;
    (4) Saluda, North Carolina-South Carolina, 1983 (provisional 
edition);
    (5) Zirconia, North Carolina-South Carolina, 1997;
    (6) Standingstone Mountain, South Carolina-North Carolina, 1997;
    (7) Horse Shoe, North Carolina, 1997;
    (8) Hendersonville, North Carolina, 1997; and
    (9) Fruitland, North Carolina, 1997.
    (c) Boundary. The Crest of the Blue Ridge Henderson County 
viticultural area is located in Henderson County, North Carolina. The 
boundary of the Crest of the Blue Ridge Henderson County viticultural 
area is as described below:
    (1) The beginning point is on the Black Mountain map at the 4,412-
foot elevation marker atop Little Pisgah Mountain, along the shared 
Buncombe-Henderson county line. From the beginning point, proceed 
southeast along the Buncombe-Henderson county line approximately 4.4 
miles, crossing onto the Bat Cave map, to the intersection of the 
Buncombe-Henderson county line with the shared Henderson-Rutherford 
county line; then
    (2) Proceed southerly along the shared Henderson-Rutherford county 
line approximately 5.1 miles to its intersection with the Polk county 
line; then
    (3) Proceed southwest along the shared Henderson-Polk county line 
approximately 14.9 miles, crossing over the Cliffield Mountain map and 
onto the Saluda map, to its intersection with the North Carolina-South 
Carolina border; then
    (4) Proceed westerly along the North Carolina-South Carolina border 
approximately 8.1 miles, crossing onto the Zirconia map, to the 3,058-
foot elevation marker atop Big Top Mountain; then
    (5) Proceed northwest in a straight line approximately 2.0 miles, 
crossing onto the Standingstone Mountain map, to the center of the 
highest closing contour atop Maybin Mountain; then
    (6) Proceed northeast in a straight line approximately 2.2 miles, 
crossing back onto the Zirconia map, to the intersection of an unnamed 
road, known locally as County Road 1113/Maybin Road, with Mountain 
Valley Road, also known as County Road 1109/Cabin Creek Road; then
    (7) Proceed northwest along Mountain Valley Road/County Road 1109/
Cabin Creek Road approximately 1.3 miles, crossing back onto the 
Standingstone Mountain map, to its intersection with Pinnacle Mountain 
Road; then
    (8) Proceed northwest in a straight line approximately 1.0 mile to 
the intersection of Little Cove Creek with the 2,800-foot elevation 
contour; then
    (9) Proceed westerly along the 2,800-foot elevation contour 
approximately 2.4 miles to its intersection with an unnamed creek on 
the north slope of Stone Mountain that flows into Jeffers Lake; then
    (10) Proceed southwest in a straight line approximately 2.0 miles 
to the intersection of the shared Henderson-Transylvania county line 
with the Dupont State Forest boundary atop Hickory Mountain; then
    (11) Proceed northeast along the Henderson-Transylvania county line 
approximately 2.6 miles, crossing onto the Horse Shoe map, to its 
intersection with an unnamed road, known locally as Clipper Lane, on 
the hilltop above the Sentell Cemetery; then
    (12) Proceed northeast in a straight line approximately 1.6 miles 
to the center of the highest closing contour atop Jeter Mountain; then
    (13) Proceed southeast in a straight line approximately 1.3 miles 
to the center of the highest closing contour atop Evans Mountain; then
    (14) Proceed northeast in a straight line approximately 2.0 miles 
to the center of the highest closing contour atop Wolf Mountain; then
    (15) Proceed northeast in a straight line approximately 1.2 miles 
to the center of the highest closing contour atop Drake Mountain; then
    (16) Proceed northwest in a straight line approximately 0.7 mile to 
the center of the highest closing contour atop Cantrell Mountain; then
    (17) Proceed northeast in a straight line approximately 3.3 miles 
to the 2,618-foot elevation marker on the northeast slope of Long John 
Mountain; then
    (18) Proceed northeast in a straight line approximately 1.4 miles, 
crossing onto the Hendersonville map, to the

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center of the highest closing contour atop Stoney Mountain; then
    (19) Proceed northeast in a straight line approximately 0.6 mile to 
the intersection of Brookside Camp Road with Dixie Highway; then
    (20) Proceed northeast along Brookside Camp Road approximately 2.1 
miles, crossing onto the Fruitland map, to its intersection with Locust 
Grove Road; then
    (21) Proceed northeast along Locust Grove Road approximately 1.4 
miles to its intersection with an unnamed trail near Locust Grove 
Church; then
    (22) Proceed northeast in a straight line approximately 0.7 mile to 
the 3,442-foot elevation marker atop Rich Mountain; then
    (23) Proceed northwest in a straight line approximately 0.4 mile to 
the intersection of Southern Leveston Road with an unnamed jeep trail; 
then
    (24) Proceed northwest along Southern Leveston Road approximately 
2.4 miles to its intersection with Hoopers Creek Road; then
    (25) Proceed northeast in a straight line approximately 0.7 mile to 
the 2,983-foot elevation marker labeled Edneyville-5 atop a peak on 
Burney Mountain along the shared Henderson-Buncombe county line; then
    (26) Proceed northeast along the Henderson-Buncombe county line 
approximately 8.2 miles, crossing onto the Black Mountain map, and 
return to the beginning point atop Little Pisgah Mountain.

    Signed: June 18, 2019.
Mary G. Ryan,
Acting Administrator.
    Approved: July 11, 2018.
Timothy E. Skud,
Deputy Assistant Secretary, (Tax, Trade, and Tariff Policy).
[FR Doc. 2019-15353 Filed 7-18-19; 8:45 am]
 BILLING CODE 4810-31-P