[Federal Register Volume 88, Number 166 (Tuesday, August 29, 2023)]
[Rules and Regulations]
[Pages 59446-59449]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-18588]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 9

[Docket No. TTB-2022-0013; T.D. TTB-189; Ref: Notice No. 218]
RIN 1513-AC91


Establishment of the Winters Highlands 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 7,296-acre ``Winters Highlands'' viticultural area in 
portions of Solano and Yolo Counties in California. The Winters 
Highlands 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 September 28, 2023.

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). In addition, the Secretary of the Treasury 
has delegated certain administrative and enforcement authorities to TTB 
through Treasury Order 120-01.
    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

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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;
     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.

Petition To Establish the Winters Highlands AVA

    TTB received a petition on behalf of Berryessa Gap Vineyards 
proposing the establishment of the ``Winters Highlands'' AVA in 
portions of Solano and Yolo counties in California. The proposed 
Winters Highlands AVA covers approximately 7,296 acres and is not 
located within any other AVA. There are planted vineyards covering 
approximately 134 acres within the proposed AVA, as well as three 
wineries. According to the petition, an additional 60 acres of 
vineyards are planned for planting in the next few years. According to 
the petition, the distinguishing features of the proposed Winters 
Highlands AVA are its climate, specifically, its temperature, 
precipitation, and relative air humidity, and its soils.
    According to the petition, the proposed AVA is located on the 
eastern side of the Coast Ranges, which provide shelter from most of 
the cool air blowing eastward from the Pacific Ocean. However, the 
Berryessa Gap, a break in the Coast Ranges where Putah Creek flows into 
the manmade Lake Berryessa, does allow some cool air from the Pacific 
Ocean directly into the proposed AVA, particularly in the evenings. The 
petition states that, as a result, the proposed AVA tends to have 
cooler evenings than the more inland regions to the north. The petition 
also says that the proposed AVA has more growing degree days \1\ (GDDs) 
than surrounding areas and a wide difference between daily minimum and 
maximum temperatures. This set of conditions promotes the growth of 
Mediterranean-type grapes.
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    \1\ Heat summation is calculated as the sum of the mean monthly 
temperature above 50 degrees Fahrenheit (F) during the growing 
season from April 1 to October 31 and is expressed as growing degree 
days (GDDs). A baseline of 50 degrees F is used because there is 
almost no shoot growth below this temperature. See Albert J. Winkler 
et al., General Viticulture (Berkeley: University of California 
Press, 2nd ed. 1974), pages 67-71.
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    The GDD data indicates that the proposed Winters Highlands AVA has 
higher average GDD accumulations than all surrounding regions except 
those to the northeast. The proposed AVA has a greater average monthly 
maximum temperature than all the other regions, except the Woodlands 
region to the northeast from May to September, when temperature 
differences are most pronounced. From March to September, the average 
monthly minimum temperature of the proposed AVA is similar to locations 
east and northeast of the proposed AVA and higher than temperatures in 
the other surrounding locations. The petition includes frost-free data 
that indicates the proposed AVA has more frost-free days than any of 
the other locations except the region east of the proposed AVA. 
According to the petition, frost-free days are the criterion that 
determines the length of the growing season for wine grape production 
regions, since spring frost can damage the newly emerged shoots and 
fall frost can lead to berry damage and aging of the leaves, or leaf 
senescence. Precipitation amounts in the proposed AVA were similar to 
amounts in the region southeast of the proposed AVA; greater than the 
amounts in the regions to the southwest, east, and northeast; and lower 
than the amounts to the west during winter. Precipitation amounts 
greatly affect the level of water retained in the soil and decisions 
about vineyard irrigation during the growing season. Data for average 
relative air humidity suggests the proposed Winters Highlands AVA has 
lower humidity than all the surrounding regions throughout the year, 
except during October and November, when the humidity rises slightly 
and becomes similar to that of the region northeast of the proposed 
AVA. Air humidity during the growing season profoundly influences pest 
and disease control in the vineyards.
    The proposed Winters Highlands AVA contains soils that are 
dominated by fine clay or loamy alfisols and inceptisols with gentle to 
steep slopes and a mean annual soil temperature between 15 to 22 
degrees C. The petition also describes the soils as warm and somewhat 
dry in the summer and cool and wet in the winter. The soils within the 
proposed AVA are mostly well or moderately well drained, which is 
critical for root growth and respiration. The petition also states that 
soils within the proposed AVA generally have a lower soil pH than those 
to the east. A higher soil pH could affect the availability of soil 
nutrients.
    The petition states that soils found in the northeastern portion of 
the proposed AVA are very deep and derived from mixed sources on the 
alluvial fan, while soils found on the western and southeastern 
portions are relatively shallow and formed on the terraces from 
sedimentary rocks. North and south of the proposed AVA, the soils have 
a similar profile to those of the proposed AVA. However, according to 
the petition, soils with poor or somewhat poor drainage are more 
prevalent in the region to the north of the proposed AVA, while soils 
derived from sedimentary rocks, rather than alluvium, are more common 
in the region to the south. The regions east and

[[Page 59448]]

southeast of the proposed AVA are dominated by soils formed from the 
alluvium of mixed sources. To the southwest of the proposed AVA, soils 
are mainly loamy or clay mollisols, vertisols, ultisols and alfisols on 
alluvial fans and terraces.

Notice of Proposed Rulemaking and Comments Received

    TTB published Notice No. 218 in the Federal Register on November 
28, 2022 (87 FR 72932), proposing to establish the Winters Highlands 
AVA. In the notice, TTB summarized the evidence from the petition 
regarding the name, boundary, and distinguishing features of 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. 218. In Notice No. 218, TTB solicited comments on the 
sufficiency and accuracy of the name, boundary, and other required 
information submitted in support of the petition. The comment period 
closed on January 27, 2023.
    In response to Notice No. 218, TTB received one comment. The 
commenter expressed their full support for the AVA, but also stated 
that the proposed AVA should be expanded to the west to incorporate 
additional area. They stated that they have 2 ranches in the area that 
they plan for future vineyards and would like the AVA to include their 
planned vineyards that border the proposed area. The commenter did not 
provide additional information regarding how the name, climate, and 
soil evidence might apply to the expansion area.

TTB Determination

    After careful review of the petition and the comment received in 
response to Notice No. 218, TTB finds that the evidence provided by the 
petitioner supports establishing the Winters Highlands AVA as proposed. 
TTB is not expanding the boundary of the AVA as suggested by the 
comment due to a lack of information to support such a change. 
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 ``Winters Highlands'' AVA in Solano 
and Yolo Counties, California, effective 30 days from the publication 
date of this document.

Boundary Description

    See the narrative description of the boundary of the Winters 
Highlands 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. The Winters Highlands AVA boundary may 
also be viewed 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 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 Winters Highlands AVA, its name, 
``Winters Highlands,'' 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 ``Winters Highlands'' 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.
    Establishing the Winters Highlands AVA will not affect any existing 
AVA. Establishing the Winters Highlands AVA will allow vintners to use 
``Winters Highlands'' as an appellation of origin for wines made 
primarily from grapes grown within the Winters Highlands 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

    Vonzella C. Johnson 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.  9.290 to read as follows:


Sec.  9.290  Winters Highlands.

    (a) Name. The name of the viticultural area described in this 
section is ``Winters Highlands.'' For purposes of part 4 of this 
chapter, ``Winters Highlands'' is a term of viticultural significance.
    (b) Approved maps. The four United States Geological Survey (USGS) 
1:24,000 scale topographic maps used to determine the boundary of the 
Winters Highlands viticultural area are:
    (1) Winters, CA, 2018;
    (2) Allendale, CA, 2018;
    (3) Mount Vaca, CA, 2018; and
    (4) Monticello Dam, CA, 2018.
    (c) Boundary. The Winters Highlands viticultural area is located in 
portions of Solano and Yolo Counties, California. The boundary of the 
Winters Highlands viticultural area is as follows:
    (1) The boundary begins on the Winters map at the intersection of 
Putah

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Creek Road and Wintu Way. From the beginning point, proceed 
southeasterly along Wintu Way, crossing onto the Allendale map, to the 
terminus of Wintu Way; then
    (2) Proceed south-southwest in a straight line for 1.05 miles to 
the eastern terminus of Morse Lane; then
    (3) Proceed westerly along Morse Lane to its intersection with 
Olive School Lane; then
    (4) Proceed north-northwest in a straight line for 2.52 miles, 
crossing over the northeastern corner of the Mount Vaca map and onto 
the Monticello Dam map, to the line's intersection with Highway 128, 
approximately 2.78 miles west of the intersection of Highway 128 and 
County Road 89; then
    (5) Proceed north in a straight line to the intersection of the 
line with the Chickahominy Slough; then
    (6) Proceed east-southeast along the Chickahominy Slough, crossing 
onto the Winters map, to its intersection with the 170-foot elevation 
contour; then
    (7) Proceed south-southeasterly along the 170-foot elevation 
contour to its intersection with the Winters Canal; then
    (8) Proceed south along the Winters Canal to its intersection with 
the terminus of an unnamed local road; then
    (9) Proceed due west in a straight line to the 200-foot elevation 
contour; then
    (10) Proceed south in a straight line to the northern terminus of 
County Road 88; then
    (11) Proceed south along County Road 88 to its southern terminus 
and continue south in a straight line to Valley Oak Drive; then
    (12) Proceed southerly along Valley Oak Drive to its intersection 
with Highway 128; then
    (13) Proceed southeasterly in a straight line for 1.04 miles, 
returning to the beginning point.

    Signed: August 21, 2023.
Mary G. Ryan,
Administrator.

    Approved: August 22, 2023.
Thomas C. West, Jr.,
Deputy Assistant Secretary (Tax Policy).
[FR Doc. 2023-18588 Filed 8-28-23; 8:45 am]
BILLING CODE 4810-31-P