[Federal Register Volume 85, Number 40 (Friday, February 28, 2020)]
[Proposed Rules]
[Pages 11894-11900]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-04012]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 9

[Docket No. TTB-2020-0002; Notice No. 187]
RIN 1513-AC54


Proposed Establishment of the Verde Valley 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 200 square-mile ``Verde Valley'' 
viticultural area in Yavapai County, Arizona. The proposed viticultural 
area is not located 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 April 28, 2020.

ADDRESSES: You may electronically submit comments to TTB on this 
proposal, and view copies of this

[[Page 11895]]

document, its supporting materials, and any comments TTB receives on it 
within Docket No. TTB-2020-0002 as posted on Regulations.gov (https://www.regulations.gov), the Federal e-rulemaking portal. Please see the 
``Public Participation'' section of this document below for full 
details on how to comment on this proposal via Regulations.gov, U.S. 
mail, or hand delivery, and for full details on how to view or obtain 
copies of this document, its supporting materials, and any comments 
related to this proposal.

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 the functions 
and duties in the administration and enforcement of these provisions to 
the TTB Administrator through Treasury Order 120-01, dated December 10, 
2013 (superseding Treasury Order 120-01, dated January 24, 2003).
    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 
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.

Verde Valley Petition

    TTB received a petition from the Verde Valley Wine Consortium, on 
behalf of the local grape growers and winemakers, proposing to 
establish the approximately 200 square-mile ``Verde Valley'' AVA in 
Yavapai County, Arizona. The petition notes that the entire geological 
feature known as ``Verde Valley'' encompasses approximately 714 square 
miles, most of which is National Forest land. The proposed AVA, 
however, encompasses a much smaller area and excludes much of the 
public lands that are unavailable for viticulture. Although an effort 
was made to exclude as many public lands from the proposed AVA as 
possible, including Montezuma's Castle and Montezuma's Well National 
Monuments and the Prescott and Coconino National Forests, approximately 
33 percent of the land within the proposed Verde Valley AVA is still 
part of either the Prescott or Coconino National Forests. The petition 
states that it was not practical to draw a boundary that would exclude 
all Federal land because several of the vineyards within the proposed 
AVA are ``islands'' of private land surrounded on all sides by Federal 
land. The petition states that even with the amount of Federal land 
remaining within the proposed AVA, there is still plenty of privately 
owned land available for vineyards within the proposed boundaries.
    The proposed AVA currently has 24 commercial vineyards, covering a 
total of approximately 125 acres. According to the petition, several 
existing vineyards are planning to expand by a total of an estimated 40 
acres in the near future. In addition, there are 11 wineries located 
within the proposed AVA.
    According to the petition, the distinguishing features of the 
proposed Verde Valley AVA are its climate, soils, and topography. The 
petition also included information about the geology of the proposed 
AVA. However, because the petition did not compare the geology of the 
proposed AVA to that of the surrounding regions and did not describe 
the effect geology has on viticulture, TTB does not consider geology to 
be a distinguishing feature of the proposed AVA. Unless otherwise 
noted, all information and data pertaining to the proposed AVA 
contained in this proposed rule come from the petition for the proposed 
Verde Valley AVA and its supporting exhibits.

Name Evidence

    The proposed Verde Valley AVA is located within the larger valley 
of the Verde River in central Arizona. According to the petition, the 
region of the proposed AVA has been referred to as ``Verde Valley'' 
since 1583, when the Spanish explorer Antonio de Espejo recorded his 
travels in the area. With the passing of the Homestead Act in 1862, 
which granted land in the area to settlers who were willing make 
productive use of the land, pioneers began moving to the region and 
settled the town of Camp Verde. Later, Fort Verde was built to provide 
military protection for the residents.
    The petition included several examples of written works that refer 
to the ``Verde Valley.'' An early geological study of the region, 
published in 1890,

[[Page 11896]]

was entitled, ``Thenardite, mirabilite, glauberite, halite, and 
associates, of the Verde Valley, Arizona Territory.'' \1\ A 1963 
publication by the U.S. Department of Interior was titled, ``Geology 
and Ground Water in the Verde Valley-The Mongollon Rim Region, 
Arizona.'' \2\ In 2012, the Lonely Planet travel site included the 
Verde Valley region in its Top 10 list of U.S. travel destinations for 
2013. The article notes, ``Between Phoenix and the Grand Canyon, the 
Verde Valley is taking off as Arizona's go-to destination, and not just 
among the spa and crystal Sedona fans of years past.'' \3\ Finally, an 
article about the wine industry in Arizona, published in a 2013 edition 
of the In Business magazine, states that the majority of Arizona's wine 
grapes are grown in ``the greater Willcox area and the Verde Valley.'' 
\4\
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    \1\ Blake, W.P. Thenardite, mirabilite, glauberite, halite, and 
associates, of the Verde Valley, Arizona Territory. (1890) American 
Journal of Science, vol. 39, number 229, pp. 43-45.
    \2\ Twenter, Floyd R., and Metzger, D.G. Geology and Ground 
Water in the Verde Valley-The Mongollon Rim Region, Arizona. 
Washington: Government Printing Office. 1963.
    \3\ Reid, Robert. Top 10 travel destinations for 2013. Lonely 
Planet. December 2012. https://www.lonelyplanet.com/travel-tips-and-articles/77583.
    \4\ Stanton, Alison. Arizona's Growing Wine Industry. In 
Business. October 2013, pp. 20-21. http://inbusinessphx.com/in-business/arizonas-growing-wine-industry.
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    The petition also included several photographs of local businesses 
and organizations that use the term ``Verde Valley'' in their names. 
For example, the Verde Valley Fire District, Verde Valley Medical 
Center, and Verde Valley Montessori School all serve the region of the 
proposed AVA. The local newspaper, the Verde Independent, is published 
by Verde Valley Newspapers, Inc. A local hotel is named the Verde 
Valley Inn, and a ballet studio is named Verde Valley Ballet. Finally, 
the petition included a page from the local telephone directory which 
lists several other businesses that use ``Verde Valley'' in their 
names, such as Verde Valley Plumbing, Verde Valley RV Resort and 
Campground, and Verde Valley Self Storage.

Boundary Evidence

    The proposed Verde Valley AVA is located in Yavapai County, 
Arizona, approximately 100 miles north of the Phoenix metropolitan 
area. The Verde River flows through the center of the valley from 
northwest to southeast, and steep foothills rise up around the valley. 
The northern boundary separates the proposed AVA from the Coconino 
National Forest. The northern boundary primarily follows the 3,800-foot 
elevation contour because, according to the petition, the terrain 
becomes too steep for cultivation above that elevation. The proposed 
eastern boundary follows a series of elevation contours to separate the 
proposed AVA from extremely steep terrain, as well as from the public 
lands within the Coconino National Forest and Montezuma's Well and 
Montezuma's Castle National Monuments. The proposed southern boundary 
follows section lines on the U.S.G.S. topographic maps because, 
according to the petition, there were no other consistent features on 
the map to follow. The petition states that most of the land south of 
the proposed boundary is uninhabited and is part of the Coconino 
National Forest. The proposed western boundary primarily follows the 
3,800-foot elevation contour, to exclude the steeper terrain of the 
Black Hills range and the public lands within the Prescott National 
Forest.

Distinguishing Features

    The distinguishing features of the proposed Verde Valley AVA are 
its climate, soils, and topography.
Climate
    The petition included information on the annual precipitation 
amounts, temperatures in degrees Fahrenheit (F), and growing degree day 
\5\ (GDD) accumulations within the proposed Verde Valley AVA.
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    \5\ See Albert J. Winkler, General Viticulture (Berkeley: 
University of California Press, 1974), pages 61-64. In the Winkler 
climate classification system, annual heat accumulation during the 
growing season, measured in annual GDDs, defines climatic regions. 
One GDD accumulates for each degree Fahrenheit that a day's mean 
temperature is above 50 degrees F, the minimum temperature required 
for grapevine growth.

              Table 1--Average Annual Precipitation Amounts
                               [2012-2017]
------------------------------------------------------------------------
                                                         Average  annual
                                                          precipitation
        Location (direction from proposed AVA)               amounts
                                                            (inches)
------------------------------------------------------------------------
Proposed AVA..........................................             13.83
Fry Lake (North)......................................             29.40
Bar M Canyon (East)...................................             26.86
Baker Butte (South)...................................             27.88
Prescott (West).......................................             18.10
------------------------------------------------------------------------

    Average annual rainfall amounts within the proposed Verde Valley 
AVA are significantly lower than in the surrounding regions. Due to the 
low rainfall amounts, vineyard owners within the proposed AVA must use 
irrigation to ensure adequate hydration for their vines. The petition 
states that there are sufficient sources of groundwater within the 
proposed AVA for irrigation, and vineyard owners also employ water 
conservation methods such as drip irrigation and the use of 
agriculturally approved reclaimed water.

                                              Table 2--Temperatures
                                                   [2012-2017]
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                                         Annual mean          Maximum            Minimum         Annual growing
 Location  (direction from proposed      temperature        temperature        temperature        degree days
                AVA)                     (degrees F)        (degrees F)        (degrees F)       accumulations
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Proposed AVA........................               64.1              117.0               12.0              5,580
Fry Lake (North)....................               49.0               94.0              -11.0              1,797
Bar M Canyon (East).................               50.4               98.0              -10.0              1,727
Baker Butte (South).................               53.3               94.0                6.0              2,668
Prescott (West).....................               57.7              104.0                2.0              3,544
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    Temperatures within the proposed Verde Valley AVA are warmer than 
in each of the surrounding regions and provide suitable heat and 
sunlight for photosynthesis. The warm daytime temperatures lead to high 
annual GDD accumulations. According to the petition, the temperatures 
and GDD accumulations within the proposed AVA are best suited for 
growing warm-climate grapes such as Syrah, Cabernet

[[Page 11897]]

Sauvignon, Petite Sirah, Zinfandel, Malvasia Bianca, and Viognier.
    Finally, the petition included a discussion of the difference 
between the daytime high temperatures and nighttime low temperatures 
within the proposed AVA and the surrounding regions. The petition 
referred to these temperature differences as ``diurnal temperature 
swings.'' Although temperatures in the proposed AVA are high during the 
daytime, cool nighttime air drains into the proposed AVA from the 
surrounding higher elevations and lowers the nighttime temperatures. As 
a result, the difference between daytime high temperatures and 
nighttime low temperatures within the proposed AVA can exceed 30 
degrees F, which is a greater difference than found in any of the 
surrounding regions. According to the petition, such a significant drop 
in nighttime temperatures delays grape ripening, lessens the 
respiration of acids, and increases phenolic development in the grapes. 
The following tables show the mean diurnal temperature swings for each 
month during the growing season for the years 2014 to 2016.

                                                      Table 3--Diurnal Temperature Swings for 2014
                                                                       [Degrees F]
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                                                                                                       Month
         Location  (direction from proposed AVA)         -----------------------------------------------------------------------------------------------
                                                               April            May            June            July           August         September
--------------------------------------------------------------------------------------------------------------------------------------------------------
Within proposed AVA.....................................            37.7            38.8            41.3            32.1            29.5            31.0
Fry Lake (North)........................................            28.3            30.0            35.4            27.7            23.7            24.1
Bar M Canyon (East).....................................            31.7            32.9            38.7            30.0            26.8            27.3
Baker Butte (South).....................................            19.7            20.9            23.2            21.9            18.7            16.2
Prescott (West).........................................            30.3            30.5            33.3            25.8            25.0            26.6
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                                                      Table 4--Diurnal Temperature Swings for 2015
                                                                       [Degrees F]
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                                                                                                       Month
         Location  (direction from proposed AVA)         -----------------------------------------------------------------------------------------------
                                                               April            May            June            July           August         September
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Within proposed AVA.....................................            37.3            33.0            38.0            32.2            34.4            33.9
Fry Lake (North)........................................            26.6            22.7            30.4            25.1            26.5            26.3
Bar M Canyon (East).....................................            33.0            30.6            35.7            28.0            29.4            30.4
Baker Butte (South).....................................            19.9            18.7            20.8            19.6            20.5            18.4
Prescott (West).........................................            30.2            26.1            31.2            24.6            26.1            28.7
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                                                      Table 5--Diurnal Temperature Swings for 2016
                                                                       [Degrees F]
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                                                                                                       Month
         Location  (direction from proposed AVA)         -----------------------------------------------------------------------------------------------
                                                               April            May            June            July           August         September
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Within proposed AVA.....................................            35.4            36.0            39.5            36.8            29.8            32.2
Fry Lake (North)........................................            24.9            26.6            32.7            29.2            24.4            25.0
Bar M Canyon (East).....................................            28.7            30.6            37.0            32.3            27.2            28.9
Baker Butte (South).....................................            18.5            19.5            23.1            22.1            18.0            16.7
Prescott (West).........................................            27.6            28.1            31.1            28.1            24.4            26.3
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Soils
    The soils within the proposed Verde Valley AVA are primarily 
alluvial soils. According to the petition, the majority of the soils 
within the proposed AVA are of the Altar, Mule, Cornville, Anthony, 
Retriever, House Mountain, Cowan, and Arizo soil series. The 
composition of these soils ranges from very fine sandy loam to gravelly 
loam with silt and limestone. Traces of the Supai, Verde, and Martin 
Limestone formations can also be found throughout the proposed AVA.
    The petition states that the soils of the proposed AVA generally 
provide appropriate water drainage and have above-moderate levels of 
nutrients, although low calcium and magnesium levels are common. 
Additionally, the high bicarbonate levels in the groundwater of the 
proposed AVA have been found to increase soil pH and inhibit nutrient 
uptake in the vines. The petition states that these unfavorable 
vineyard conditions can be mitigated through rootstock, varietal, and 
clonal selections that can tolerate and even benefit from these 
nutrient deficiencies.
    To the north and east of the proposed Verde Valley AVA, along the 
Mongollon Rim, the soils are described in the petition as ``stony.'' 
The most prominent soil series in these two regions are Brolliar stony 
loam and Siesta stony silt loam. According to the petition, the 
remainder of the soil to the north and east of the proposed AVA is 
comprised of approximately 22 other defined soil series, most of which 
have the terms ``stony'' or ``very stony'' in their names. To the west 
and southwest of the proposed AVA, in the Black Hills, the soils are 
also typically stony. Major soil series in these regions include 
Brolliar very stony clay loam, Soldier cobbly loam, Lonti-Wineg, and 
Lynx.
Topography
    The proposed Verde Valley AVA is located within the basin of the 
Verde River. The petition describes the shape of this basin as a ``bowl 
with a crack in it to the south where the river flows out of the 
valley.'' The edges of the ``bowl'' gently slope down towards the 
valley

[[Page 11898]]

floor at angles of 2 to 15 percent. Elevations within the proposed AVA 
range from approximately 3,000 feet to 5,000 feet, although most of the 
proposed AVA is below 3,900 feet.
    The proposed AVA is surrounded on all sides by higher elevations 
and steeper slopes. To the north and northeast of the proposed AVA, 
elevations rise up to 8,000 feet along the edge of the Mongollon Rim. 
To the west and southwest of the proposed AVA are the Black Mountains, 
which have steep slopes and elevations up to approximately 7,800 feet.
    According to the petition, the proposed Verde Valley AVA's 
topography affects viticulture. Gentle slopes allow for easier vineyard 
management than steep slopes. Furthermore, because the proposed AVA is 
lower than the surrounding regions, cold air drains from the higher 
elevations into the proposed AVA during the spring and fall. As a 
result, the risk of frost damage increases in the proposed AVA, 
particularly in vineyards adjacent to the river. The petition states 
that vineyard owners attempt to mitigate the risk of frost by using 
inversion fans and protective sprays and by planting late-budding 
varietals of grapes.

Summary of Distinguishing Features

    The evidence provided in the petition indicates that the climate, 
soil, and topography of the proposed Verde Valley AVA distinguish it 
from the surrounding regions in each direction. The following table 
summarizes the features of the proposed AVA and the surrounding 
regions.

                                       Summary of Distinguishing Features
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                Region                         Climate                   Soils                  Topography
----------------------------------------------------------------------------------------------------------------
Proposed Verde Valley AVA............  Average of 13.83 inches  Alluvial soils composed  Gentle slopes with
                                        of rain annually;        of loams ranging from    angles of 2 to 15
                                        average GDD              very fine sandy loams    percent; elevations
                                        accumulations of         to gravelly loams with   between 3,000 and
                                        5,580; hot summers and   silt and limestone.      5,000 feet.
                                        moderate winters;
                                        growing season diurnal
                                        temperature swings of
                                        30 degrees or higher.
North................................  Higher annual rainfall   Stony soils primarily    Steep slopes with
                                        amounts; lower GDD       of the Brollar stony     elevations up to 8,000
                                        accumulations; cooler    loam and Siesta stony    feet.
                                        summers and colder       silt series.
                                        winters; smaller
                                        diurnal temperature
                                        difference swings.
East.................................  Higher annual rainfall   Stony soils primarily    Steep slopes with
                                        amounts; lower GDD       of the Brolliar stony    elevations up to 8,000
                                        accumulations; cooler    loam and Siesta stony    feet.
                                        summers and colder       silt series.
                                        winters; smaller
                                        diurnal temperature
                                        difference swings.
South................................  Higher annual rainfall   Stony soils primarily    Steep slopes with
                                        amounts; lower GDD       of the Brolliar very     elevations up to 7,800
                                        accumulations; cooler    stony clay loam,         feet.
                                        summers and moderate     Soldier cobbly loam,
                                        winters; smaller         Lonti-Wineg, and Lynx
                                        diurnal temperature      series.
                                        difference swings.
West.................................  Higher annual rainfall   Stony soils primarily    Steep slopes with
                                        amounts; lower GDD       of the Brolliar very     elevations up to 7,800
                                        accumulations; cooler    stony clay loam,         feet.
                                        summers and moderate     Soldier cobbly loam,
                                        winters; smaller         Lonti-Wineg, and Lynx
                                        diurnal temperature      series.
                                        difference swings.
----------------------------------------------------------------------------------------------------------------

TTB Determination

    TTB concludes that the petition to establish the approximately 200-
square mile Verde Valley 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. You may also view the proposed 
Verde Valley AVA boundary on the AVA Map Explorer on the TTB website, 
at https://www.ttb.gov/wine/ava-map-explorer.

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, ``Verde Valley,'' 
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 
``Verde Valley'' 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.

[[Page 11899]]

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 Verde Valley AVA on wine labels that include the term ``Verde 
Valley,'' 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-2020-0002 on ``Regulations.gov,'' the Federal e-rulemaking portal, 
at http://www.regulations.gov. A direct link to that docket is 
available under Notice No. 187 on the TTB website 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. 187 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.

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-2020-0002 on the 
Federal e-rulemaking portal, Regulations.gov, at https://www.regulations.gov. A direct link to that docket is available on the 
TTB website at https://www.ttb.gov/wine/wine-rulemaking.shtml under 
Notice No. 187. 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, Suite 400, 
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 Regulations and Rulings Division at the 
above address, by email using the web form at https://www.ttb.gov/contact-rrd, or by telephone at 202-453-1039, ext. 175, 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:

[[Page 11900]]

Sec.  9.__   Verde Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Verde Valley''. For purposes of part 4 of this chapter, 
``Verde Valley'' is a term of viticultural significance.
    (b) Approved maps. The 9 United States Geological Survey (USGS) 
1:24,000 scale topographic maps used to determine the boundary of the 
Verde Valley viticultural area are titled:
    (1) Camp Verde, Ariz., 1969;
    (2) Clarkdale, Ariz., 1973;
    (3) Cornville, Ariz., 1968;
    (4) Cottonwood, Ariz., 1973;
    (5) Lake Montezuma, Ariz., 1969;
    (6) Middle Verde, Ariz., 1969;
    (7) Munds Draw, Ariz., 1973;
    (8) Page Springs, Ariz., 1969; and
    (9) Sedona, Ariz., 1969.
    (c) Boundary. The Verde Valley viticultural area is located in 
Yavapai County, Arizona. The boundary of the Verde Valley viticultural 
area is as described below:
    (1) The beginning point of the boundary is at the intersection of 
the 3,800-foot elevation contour and the northern boundary of Section 
32, T17N/R3E, on the Clarkdale Quadrangle. From the beginning point, 
proceed east along the northern boundary of Section 32 until its 
intersection with the Verde River; then
    (2) Proceed north along the Verde River to its intersection with 
the western boundary of Section 21, T17N/R3E; then
    (3) Proceed north along the western boundaries of Sections 21 and 
16 to the intersection with the 3,800-foot elevation contour; then
    (4) Proceed southerly then easterly along the 3,800-foot elevation 
contour, crossing onto the Page Springs Quadrangle, to its intersection 
with Bill Gray Road in Section 18, T16N/R4E; then
    (5) Proceed north along Bill Gray Road to its intersection with an 
unnamed, unimproved road known locally as Forest 761B Road in Section 
32, T17N/R4E; then
    (6) Proceed east, then northeast, along Forest 761B Road to its 
intersection with Red Canyon Road in Section 26, T17N/R4E; then
    (7) Proceed south along Red Canyon Road to its intersection with 
U.S. Highway 89 Alt. in Section 35, T17N/R4E; then
    (8) Proceed east over U.S. Highway 89 Alt. in a straight line to 
and unnamed, unimproved road known locally as Angel Valley Road, and 
proceed southeasterly along Angel Valley Road as it becomes a light-
duty road, crossing over Oak Creek, and continuing along the 
southernmost segment of Angel Valley Road to its terminus at a 
structure on Deer Pass Ranch in Section 12, T16N/R4E; then
    (9) Proceed south in a straight line to the 3,800-foot elevation 
contour in Section 12, T16/NR4E; then
    (10) Proceed south-southeasterly along the 3,800-foot elevation 
contour, crossing over the southwestern corner of the Sedona Quadrangle 
and onto the Lake Montezuma Quadrangle, to the intersection of the 
contour line with an unnamed creek in Section 6, T15N/R5E; then
    (11) Proceed southwesterly along the unnamed creek until its 
intersection with the 3,600-foot elevation contour in Section 1, T15N/
R4E; then
    (12) Proceed southerly along the 3,600-foor elevation contour, 
crossing briefly onto the Cornville Quadrangle and then back onto the 
Lake Montezuma Quadrangle, to the intersection of the elevation contour 
with an unnamed secondary highway known locally as Cornville Road in 
Section 7, T15N/R5E; then
    (13) Proceed southeast along Cornville Road to its intersection 
with the 3,600-foot elevation contour in Section 20, T15N/R5 E; then
    (14) Proceed easterly, then southerly, along the elevation contour 
to its intersection with the boundary of the Montezuma Castle National 
Monument in Section 36, T15N/R5E; then
    (15) Proceed west, southeast, southwest, and then east along the 
boundary of the Montezuma Castle National Monument to its intersection 
with range line separating R5E and R6E; then
    (16) Proceed south along the R5E/R6E range line, crossing onto the 
Camp Verde Quadrangle, to the intersection of the range line and the 
southeastern corner of Section 12, T14N/R5E; then
    (17) Proceed west along the southern boundaries of Sections 12, 11, 
10, and 9 to the intersection of the southern boundary of Section 9 and 
the Montezuma Castle National Monument; then
    (18) Proceed along the boundary of the Montezuma Castle National 
Monument in a counterclockwise direction to the intersection of the 
monument boundary and the 3,300-foot elevation contour in Section 16, 
T14N/R5E; then
    (19) Proceed southerly, then southeasterly, along the 3,300-foot 
elevation contour to its intersection with the eastern boundary of 
Section 18, T13N/R6E; then
    (20) Proceed south along the eastern boundary of Section 18 to its 
intersection with the southern boundary of Section 18; then
    (21) Proceed west along the southern boundaries of Sections 19, 13, 
14, 15, 16, 17, and 18, T13N/R53, and Section 13, T13N/R4E, to the 
intersection with the 3,800-foot elevation contour in Section 13, T13N/
R4E; then
    (22) Proceed northwesterly along the 3,800-foot elevation contour, 
crossing over the Middle Verde and Cornville Quadrangles and onto the 
Cottonwood Quadrangle, to the intersection of the elevation contour 
with an unnamed creek in Del Monte Gulch in Section 5, T15N/R3E; then
    (23) Proceed westerly along the unnamed creek to its intersection 
with the 5,000-foot elevation contour in Section 26, T16N/R2E; then
    (24) Proceed northerly along the 5,000-foot elevation contour, 
crossing over the Clarkdale Quadrangle and onto the Munds Draw 
Quadrangle, to the intersection of the elevation contour with a 
pipeline in Section 4, T16N/R2E; then
    (25) Proceed southeasterly along the pipeline, crossing onto the 
Clarkdale Quadrangle, and continuing northeasterly along the pipeline 
to its intersection with the 3,800-foot elevation contour in Section 
32, T17N/R3E; then
    (26) Proceed northerly along the 3,800-foot contour, returning to 
the beginning point.

    Signed: November 26, 2019.
Mary G. Ryan,
Acting Administrator.

    Approved: February 4, 2020.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and Tariff Policy).
[FR Doc. 2020-04012 Filed 2-27-20; 8:45 am]
 BILLING CODE 4810-31-P