[Federal Register Volume 85, Number 171 (Wednesday, September 2, 2020)]
[Rules and Regulations]
[Pages 54491-54494]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-17423]



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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 9

[Docket No. TTB-2019-0008; T.D. TTB-162; Ref: Notice No. 186]
RIN 1513-AC53


Establishment of the Royal Slope 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 156,389-acre ``Royal Slope'' viticultural area in 
Adams and Grant Counties, in Washington. The Royal Slope viticultural 
area is located entirely within the existing Columbia Valley 
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 October 2, 2020.

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 to TTB 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;
     If the proposed AVA is to be established within, or 
overlapping, an existing AVA, an explanation that both identifies the 
attributes of the proposed AVA that are consistent with the existing 
AVA and explains how the proposed AVA is sufficiently distinct from the 
existing AVA and therefore appropriate for separate recognition;
     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.

Royal Slope Petition

    TTB received a petition from Dr. Alan Busacca, a licensed geologist 
and founder of Vinitas Vineyard Consultants, LLC, on behalf of the 
Royal Slope Wine Grower's Association, proposing the establishment of 
the ``Royal Slope'' AVA in Adams and Grant Counties, in Washington. The 
proposed Royal Slope AVA lies entirely within the established Columbia 
Valley AVA (27 CFR 9.74).
    Within the 156,389-acre proposed AVA, there are currently 13 
producing commercial vineyards which cover a total of approximately 
14,100 acres. There is also one winery within the proposed AVA. 
According to the petition, the distinguishing features of the proposed 
Royal Slope AVA are its climate, topography, geology, and soils.
    The climate of the proposed Royal Slope AVA is described as warm 
but not excessively hot, making it a suitable climate for growing a 
variety of red and white grape varietals, including Cabernet Franc, 
Merlot, Syrah, Chardonnay, and Riesling. The proposed AVA generally has 
greater growing degree day \1\ accumulations and an average cool-
climate viticulture sustainability index \2\ number than all of the 
surrounding regions except the regions to the south and north. The 
proposed AVA also has a lower risk of vine-damaging freezes, as it 
generally has fewer days per year with temperatures below 32 degrees 
Fahrenheit (F) than all of the surrounding regions except the region to 
the south. Finally, the proposed AVA has an average of only 9 days a 
year with temperatures above 95 degrees F, which is fewer than the 
region to the south, and has fewer very hot days per year than the 
regions to the north, east,

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and west. Grape vines shut down photosynthesis at temperatures above 95 
degrees F, which can slow or even stop the synthesis of sugars and 
other ripening factors and may delay harvest.
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    \1\ See Albert J. Winkler, General Viticulture (Berkeley: 
University of California Press, 2nd ed. 1974), pages 61-64. In the 
Winkler climate classification system, annual heat accumulation 
during the growing season, measured in annual growing degree days 
(GDDs), defines climatic regions. One GDD accumulates for each 
degree Fahrenheit that a day's mean temperature is above 50 degrees, 
the minimum temperature required for grapevine growth.
    \2\ The cool-climate viticulture sustainability index represents 
the number of days between the last temperature below 29 degrees F 
in the spring and the first temperature below 29 degrees F in the 
fall.
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    The topography of the proposed Royal Slope AVA is characterized by 
the gentle, south-facing slopes of an east-west trending range of hills 
called the Frenchman Hills. Slope angles are generally less than 15 
percent, with very few slopes having angles of less than 3 percent. The 
slopes are gentle enough for agricultural purposes and are not as 
freeze-prone as flatter terrains such as valley floors. To the north of 
the proposed AVA, the Frenchman Hills fall away to the Quincy Basin, 
which is a large, flat-floored valley. To the northeast are sand dunes 
and ``pothole'' ponds between the dune crests. To the east and south of 
the proposed AVA is the Crab Creek Coulee, which is described as a 
``moonscape of bedrock-dominated scabland'' unsuitable for agriculture. 
To the west is the canyon of the Columbia River, which has lower 
elevations and steeper, rockier terrain than the proposed AVA.
    The proposed Royal Slope AVA, like the rest of the Columbia Valley 
AVA, is underlain with Miocene-era basaltic bedrock and has been 
affected by Ice Age megafloods. Within the region of the proposed AVA, 
the floodwaters followed flood channels to the east and northeast. The 
waters entered the region in a relatively smooth fashion, and the 
proposed AVA remained largely above the floodwaters. As a result, the 
proposed AVA was not heavily eroded and remained a landscape of gentle 
hills with deep soils suitable for cultivation. By contrast, the 
regions to the east and south of the proposed AVA were eroded by fast-
moving floodwaters which cut deeply into the landscape and formed the 
scablands of Crab Creek Coulee. Similarly strong floodwaters flowed 
through the region to the west of the proposed AVA, creating the steep 
canyon of the Columbia River. North of the proposed AVA, the 
floodwaters were smoother and gentler and deposited vast amounts of 
sand in what is now the Quincy Basin, creating a landscape of dunes and 
``pothole'' lakes.
    Within the proposed AVA, the soils are a combination of sediments 
from glacial floods and wind-blown post-glacial sand and silt (loess). 
The soils are generally deep enough for vines to extend their roots far 
into the soil before encountering bedrock or other impediments. The 
predominant soils are Aridosols, which are characterized as well-
drained and low in organic material. Major soil series include Warden, 
Sagemoore, Adkins, and Kennewick, which together comprise approximately 
59 percent of the soil in the proposed AVA. By contrast, the regions to 
the east, west, and immediate south of the proposed AVA are scablands, 
which have very little, if any, topsoil. Farther south of the proposed 
AVA, within the established Wahluke Slope AVA (27 CFR 9.192), the soils 
are deep and fertile but are primarily Entisols, including the Quincy 
soil series, which comprise less than two percent of the soils in the 
proposed AVA. The region to the north of the proposed AVA is also 
primarily composed of Entisols, including the Quincy soil series.

Notice of Proposed Rulemaking and Comments Received

    TTB published Notice No. 186 in the Federal Register on October 15, 
2019 (84 FR 55075), proposing to establish the Royal Slope 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 boundary modification, and for a detailed comparison 
of the distinguishing features of the proposed AVA to the surrounding 
areas, see Notice No. 186.
    In Notice No. 186, TTB solicited comments on the accuracy of the 
name, boundary, and other required information submitted in support of 
the petition. In addition, given the proposed Royal Slope AVA's 
location within the Columbia Valley AVA, TTB solicited comments on 
whether the evidence submitted in the petition regarding the 
distinguishing features of the proposed AVA sufficiently differentiates 
it from the established AVA. TTB also requested comments on whether the 
geographic features of the proposed AVA are so distinguishable from the 
established Columbia Valley AVA that the proposed AVA should no longer 
be part of the established AVA. The comment period closed December 16, 
2019.
    In response to Notice No. 186, TTB received a total of 24 comments. 
The commenters included individuals from several wineries within 
Washington State who use grapes grown in the proposed AVA, vineyard 
owners within the proposed AVA, a sommelier, a contributing editor from 
a wine magazine, and a wine grape consultant. All of the comments 
supported the establishment of the proposed Royal Slope AVA and 
generally state that the proposed AVA has a distinct character due to 
its soils and microclimate. Three of the comments support creating the 
proposed Royal Slope AVA so as to distinguish this region from other 
areas within the established Columbia Valley AVA. However, no 
commenters state the features within the proposed AVA are so 
distinguishable as to result in the proposed Royal Slope AVA no longer 
being part of the established Columbia Valley AVA.

TTB Determination

    After careful review of the petition and the comments received in 
response to Notice No. 186, TTB finds that the evidence provided by the 
petitioner supports the establishment of the Royal Slope 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 ``Royal Slope'' AVA in Adams and Grant 
Counties, in Washington, effective 30 days from the publication date of 
this document.
    TTB has also determined that the Royal Slope AVA will remain part 
of the established Columbia Valley AVA. As discussed in Notice No. 186, 
the Royal Slope AVA shares some broad characteristics with the 
established AVA. For example, the proposed AVA and the Columbia Valley 
AVA are both described as treeless regions of undulating hills adjacent 
to the Columbia River. Additionally, the Royal Slope AVA and Columbia 
Valley AVA both have growing seasons longer than 150 days and similar 
annual rainfall amounts. However, the smaller Royal Slope AVA is much 
more uniform in its climate, topography, geology, and soils than the 
much larger Columbia Valley AVA. For example, the Royal Slope AVA does 
not contain any scablands or any other regions with large amounts of 
exposed bedrock, and it has a more limited variety of soils than the 
diverse Columbia Valley AVA.

Boundary Description

    See the narrative description of the boundary of the Royal Slope 
AVA in the regulatory text published at the end of this final rule.

Maps

    The petitioners provided the required maps, and they are listed 
below in the regulatory text. The Royal Slope AVA boundary may also be 
viewed on the AVA Map Explorer on the TTB website, at https://www.ttb.gov/wine/ava-map-explorer.

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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 the Royal Slope AVA, its name, ``Royal 
Slope,'' 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 regulations clarifies this point. Consequently, wine 
bottlers using the name ``Royal Slope'' 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.
    The establishment of the Royal Slope AVA will not affect the 
existing Columbia Valley AVA, and any bottlers using ``Columbia 
Valley'' as an appellation of origin or in a brand name for wines made 
from grapes grown within the Columbia Valley will not be affected by 
the establishment of this new AVA. The establishment of the Royal Slope 
AVA will allow vintners to use ``Royal Slope'' and ``Columbia Valley'' 
as appellations of origin for wines made primarily from grapes grown 
within the Royal Slope 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

    Karen A. Thornton 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. Adding Sec.  9.271 to subpart C to read as follows:


Sec.  9.271  Royal Slope.

    (a) Name. The name of the viticultural area described in this 
section is ``Royal Slope''. For purposes of part 4 of this chapter, 
``Royal Slope'' is a term of viticultural significance.
    (b) Approved maps. The one United States Geological Survey (USGS) 
1:100,000 scale topographic map used to determine the boundary of the 
Royal Slope viticultural area is ``Priest Rapids, WA,'' 2015.
    (c) Boundary. The Royal Slope viticultural area is located in Grant 
and Adams Counties in Washington. The boundary of the Royal Slope 
viticultural area is as described below:
    (1) The point of the beginning is on the Priest Rapids map at the 
intersection of the 250 meter elevation contour and the northern 
boundary of Section 8, T17N/R23E. From the beginning point, proceed 
east for approximately 7 miles along the northern boundaries of 
Sections 8, 9, 10, 11, and 12, T17N/R23E, and Sections 7 and 8, T17N/
R24E to the northeast corner of Section 8, T17N/R24E; then
    (2) Proceed south for approximately 1 mile along the eastern 
boundary of Section 8 to the southeast corner of Section 8, T17N/R24 E; 
then
    (3) Proceed east for approximately 4 miles along the southern 
boundaries of Sections 9, 10, 11, and 12, T17N/R24E, to the 
southeastern corner of Section 12, T17N/R24E; then
    (4) Proceed north for approximately 1.8 miles along the eastern 
boundaries of Sections 12 and 1, T17N/R24E, to the intersection of the 
eastern boundary of Section 1 and the southern boundary of the Desert 
Unit of the Columbia Basin State Wildlife Area; then
    (5) Proceed easterly for approximately 20 miles along the boundary 
of the Desert Unit of the Columbia Basin State Wildlife Area to the 
intersection of the wildlife area boundary with O'Sullivan Dam Road/
State Highway 262; then
    (6) Proceed east for approximately 1.5 miles along O'Sullivan Dam 
Road/State Highway 262 to the intersection of the road with an unnamed 
road known locally as H Road SE; then
    (7) Proceed southeasterly for approximately 1.6 miles along H Road 
SE to the intersection of the road with the southern boundary of 
Section 16, T17N/R28E; then
    (8) Proceed east for approximately 0.4 mile along the southern 
boundary of Section 16 to the intersection of the southeastern corner 
of Section 16, T17N/R28E, and the western boundary of the Columbia 
National Wildlife Refuge; then
    (9) Proceed southerly, then southwesterly, for approximately 8 
miles along the western boundary of the Columbia National Wildlife 
Refuge and the concurrent western boundary of the Goose Lakes Unit of 
the Columbia Basin State Wildlife Area to the intersection of the 
wildlife refuge boundary with the eastern boundary of Section 14, T16N/
R27E; then
    (10) Proceed south along the eastern boundaries of Sections 14, 23, 
26, and 35, T16N/R27E, to the intersection of the eastern boundary of 
Section 35 with State Highway 26; then
    (11) Proceed northwesterly for approximately 3 miles along State 
Highway 26 to the intersection of the highway with the 250-meter 
elevation contour in the southwest corner of Section 21, T16/R27E; then
    (12) Proceed westerly for approximately 28 miles along the 250-
meter elevation contour to the intersection of the elevation contour 
with the eastern boundary of Section 26, T16N/R23E; then
    (13) Proceed north for approximately 1,100 feet along the eastern 
boundary of Section 26 to the northeast corner of Section 26, T16N/
R23E; then
    (14) Proceed west for 1 mile along the northern boundary of Section 
26, T16N/R23E, to the intersection with the

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eastern boundary of Section 22, T16N/R23E; then
    (15) Proceed north for 1 mile along the eastern boundary of Section 
22 to the northern boundary of Section 22, T16N/R23E; then
    (16) Proceed west for approximately 1.05 miles along the northern 
boundary of Section 22, T16N/R23E, to the intersection of the section 
boundary with the 250-meter elevation contour; then
    (17) Proceed northerly for approximately 10 miles along the 250-
meter elevation contour to return to the beginning point.

    Signed: April 15, 2020.
Mary G. Ryan,
Acting Administrator.

    Approved: July 1, 2020.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and Tariff Policy).
[FR Doc. 2020-17423 Filed 9-1-20; 8:45 am]
BILLING CODE 4810-31-P