[Federal Register Volume 89, Number 68 (Monday, April 8, 2024)]
[Rules and Regulations]
[Pages 24378-24381]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-07395]
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DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade Bureau
27 CFR Part 9
[Docket No. TTB-2023-0003; T.D. TTB-192; Ref: Notice No. 222]
RIN 1513-AC77
Establishment of the Comptche 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 1,421.8-acre ``Comptche'' American viticultural area (AVA) in
Mendocino County, California. The Comptche AVA is excluded from the
surrounding North Coast AVA due to significant differences in
distinguishing features. 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 May 8, 2024.
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 administration 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 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, once approved, a name and a delineated boundary
codified 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 allows any interested
party to 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 to establish or modify 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;
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.
If a smaller proposed AVA is to be established within an existing
AVA, the petitioner may request, and TTB may determine, that the
proposed AVA should not be part of the larger AVA because the proposed
AVA has features that clearly distinguish it from the surrounding AVA.
In such instances, wine produced from grapes grown within the proposed
AVA would not be entitled to use the name of the larger AVA as an
appellation of origin or in a brand name if the proposed AVA is
established.
Petition To Establish the Comptche AVA
TTB received a petition on behalf of local vineyard owners
proposing the establishment of the ``Comptche'' AVA. The proposed
Comptche AVA is in Mendocino County, California, and
[[Page 24379]]
covers 1,421.8 acres. There are currently three commercial vineyards
covering a total of over 30 acres within the proposed AVA. Although
there are no wineries within the proposed AVA, grapes are sold to
nearby wineries.
According to the petition, the distinguishing features of the
proposed Comptche AVA are its topography, soils, and climate. The
proposed Comptche AVA is within a low-elevation valley, a natural
opening that is surrounded by heavily forested lands and short, steep
ridges. Elevations within the proposed AVA range from 187 to 400 feet,
and all vineyards are planted at elevations between 220 and 250 feet.
According to the USGS map included with the petition, elevations are
higher in each direction outside of the proposed AVA. Further, the
petition notes temperature and viticulture in the proposed AVA is
affected by the relationship between the low elevations within the
proposed AVA and the higher elevations of the areas surrounding the
AVA. The petition notes that at night, cool air sinks from the higher
surrounding elevations into the proposed AVA and increases the risk of
frosts that can damage vines or delay ripening of the grapes.
According to the petition, the two main soil types within the
proposed Comptche AVA are Bearwallow-Wolfey and Perrygulch Loam.
Bearwallow-Wolfey soils are described in the petition as well-drained,
shallow, and relatively infertile soils over fractured sandstone. These
soils are prone to erosion due to their thinness and the fact that they
frequently occur on slopes. Therefore, mowing is the preferred method
of controlling weeds in the vineyards instead of tilling, which
disturbs the soil. Perrygulch Loam is a deep, rich, bottomland soil
series that contains a large amount of clay and is not as well drained
as Bearwallow-Wolfey soils. According to the petition, vineyard owners
who plant on Perrygulch Loam soils prefer to use herbicides to control
weeds because the high clay content within the soil is easily compacted
by heavy machinery. By contrast, the most common soils surrounding the
proposed Comptche AVA are Ornbaun and Zeni soils, which are found in
each direction outside the proposed AVA. These soils are described as
moderately deep to deep soils that formed from sandstone and typically
have a surface that is covered with a mat of leaves and twigs that is
one-half inch deep.
The proposed Comptche AVA is generally cooler than other
established AVAs within Mendocino County. The average annual
temperature and average growing season temperature within the proposed
AVA are 67.9 and 74.2 degrees Fahrenheit (F), respectively. By
contrast, the temperatures in the established Mendocino AVA (27 CFR
9.93), located to the east and south of the proposed AVA, and the
established Mendocino Ridge (27 CFR 9.158) and Anderson Valley (27 CFR
9.86) AVAs, both located south of the proposed AVA, are warmer. The
petition did not include climate data from the regions to the north and
west of the proposed AVA.
To further demonstrate the cooler climate of the proposed Comptche
AVA, the petition provided information on the average annual growing
degree days (GDD) accumulations,\1\ Huglin Index numbers,\2\ and
Biologically Effective Degree Days (BEDD) \3\ for the proposed AVA and
the established Mendocino, Mendocino Ridge, and Anderson Valley AVAs.
The proposed AVA had the lowest numbers of each of the regions, with
2,258.85 GDDs, a Huglin Index number of 1,835.81, and 1,395.05 BEDDs.
The petition states that due to its significantly cooler climate, the
proposed Comptche AVA is a ``borderline'' region for growing wine
grapes, and that only the most cold-hardy varietals will ripen
successfully. Currently, Pinot Noir is the only grape varietal grown
for commercial purposes in the proposed AVA.
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\1\ See Albert J. Winkler et al., General Viticulture (Berkeley:
University of California Press), pp. 61-64 (1974). 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.
\2\ According to the petition, this method uses the period from
April 1 through September 30 and sums the mean of the daily mean
temperatures above 10 degrees Celsius, multiplied by a coefficient
indicative of the latitude to account for increasing day lengths.
\3\ The BEDD method calculates the growing degree days between
April 1 and October 31 and also accounts for day length and diurnal
temperature range.
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The proposed AVA is further distinguishable because it is one of
the few places in the coastal section of Mendocino County where non-
timber related agricultural activity, including viticulture, is
permitted. The proposed AVA is surrounded by land designated as a
Timberland Production Zone. Such land is zoned only for the growing and
harvesting of timber for a period of at least ten years from the time
it was so designated.\4\
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\4\ See Ca. Gov. Code Sec. 51114.
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Although the proposed Comptche AVA is physically located within the
established North Coast AVA (27 CFR 9.30), the petitioner asked that
the proposed AVA be excluded from the established AVA because the
climate and soils of the two regions are so different. The petition
includes data showing that the proposed AVA has average annual BEDD and
GDD accumulations, Huglin Index numbers, and average growing season and
annual temperatures that are lower than those of the North Coast AVA as
a whole. Although the established North Coast AVA is a large, multi-
county AVA and variations in climate exist within it due to its large
size, the proposed Comptche AVA is, as discussed earlier, also cooler
than the three closest neighboring AVAs within the North Coast AVA:
Mendocino, Mendocino Ridge, and Anderson Valley.
Furthermore, the petition notes that the two main soil series of
the proposed Comptche AVA--Bearwallow-Wolfey and Perrygulch Loam--are
unique and relatively scarce within the North Coast AVA and within the
State of California as a whole. The Bearwallow-Wolfey series is
comprised of two soil types: Bearwallow and Wolfey. Bearwallow soils
cover a total of 30,050 acres within the State, while Wolfey and
Perrygulch Loam cover 4,709 and 580 acres of the State, respectively.
By contrast, the two most common soils directly outside the proposed
AVA, Zeni and Ornbaun series, cover 96,612 and 115,774 acres of the
State, respectively, indicating that they are more commonly found.
Notice of Proposed Rulemaking and Comments Received
TTB published Notice No. 222 in the Federal Register on March 29,
2023 (88 FR 18481), proposing to establish the Comptche AVA. In the
notice, TTB summarized the evidence from the petition regarding the
name, boundary, and distinguishing features for the proposed
viticultural area. The notice also compared the distinguishing features
of the proposed viticultural area to the surrounding areas. For a
description of the evidence relating to the name, boundary, and
distinguishing features of the proposed viticultural area, and for a
comparison of the distinguishing features of the proposed viticultural
area to the surrounding areas, see Notice No. 222.
In Notice No. 222, TTB solicited comments on the accuracy of the
name, boundary, topography, and other required information submitted in
support of the petition. In addition, TTB asked for comments on whether
the features of the proposed viticultural area are so distinguishable
from the surrounding North Coast AVA that proposed Comptche AVA should
not be part of this surrounding, existing
[[Page 24380]]
viticultural area. The comment period on Notice No. 222 closed on May
30, 2023. TTB received no comments on the proposed AVA.
TTB Determination
After careful review of the petition, TTB finds that the evidence
provided by the petitioner supports the establishment of the 1,421.8-
acre Comptche 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 ``Comptche'' AVA in
Mendocino County, California.
Furthermore, TTB finds that the evidence provided by the
petitioner, as described in Notice No. 222, shows that the features of
the North Coast AVA are so distinctive from those of the North Coast
AVA that the Comptche AVA should be separate from, and not considered a
part of, the North Coast AVA. As a result, TTB establishes the Comptche
AVA as separate from, and not within, the North Coast AVA, and wines
made primarily from grapes grown within the Comptche AVA will not be
eligible to be labeled with ``North Coast'' as an appellation of
origin.
Boundary Description
See the narrative boundary description of the Comptche 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 Comptche 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 Comptche AVA, its name, ``Comptche,''
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 ``Comptche'' in a brand name, including a trademark, or in another
label reference 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 Comptche AVA will allow vintners to use
``Comptche'' as an appellation of origin for wines made primarily from
grapes grown within the Comptche AVA if the wines meet the eligibility
requirements for the appellation. The exclusion of the Comptche AVA
from the North Coast AVA will also mean that vintners will not be able
to use ``North Coast'' as an appellation of origin for wines made
primarily from grapes grown anywhere in the Comptche AVA.
Bottlers who wish to label their wines with ``Comptche'' as an
appellation of origin must obtain a new Certificate of Label Approval
(COLA) for the label to do so. (Note that TTB cannot approve a COLA
using ``Comptche'' as an appellation of origin before the effective
date shown in the DATES section of this document, and TTB must reject
such COLA applications if submitted prior to that date.) Additionally,
after April 8, 2026, bottlers who use ``North Coast'' as an appellation
of origin on wines made primarily from grapes grown in the Comptche AVA
will no longer be able to use ``North Coast'' and would only be
eligible to use ``Comptche,'' ``Mendocino County,'' or ``California,''
or a combination of these appellations, as appellations of origin on
those wines.
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.
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. 9.292 to read as follows:
Sec. 9.292 Comptche.
(a) Name. The name of the viticultural area described in this
section is ``Comptche''. For purposes of part 4 of this chapter,
``Comptche'' is a term of viticultural significance.
(b) Approved maps. The one United States Geological Survey (USGS)
1:24,000 scale topographic map used to determine the boundary of the
viticultural area is titled Comptche, California (provisional edition
1991).
(c) Boundary. The Comptche viticultural area is located in
Mendocino County, California. The boundary of the Comptche viticultural
area is as described as follows:
(1) The beginning point is on the Comptche map at the intersection
of a north-south tributary of the Albion River and an unnamed improved
road known locally as Comptche Ukiah Road, section 12, T16N/R16W. From
the beginning point, proceed northwest in a straight line, crossing an
unnamed, unimproved road known locally as Surprise Valley Road, to the
400-foot elevation contour, section 12, T16N/R16W; then
(2) Proceed north, then easterly along the 400-foot elevation
contour to its intersection with an unnamed, unimproved road southeast
of the marked 517-foot peak in section 1, T16N/R16W; then
(3) Proceed southeasterly along the unnamed, unimproved road to its
intersection with an unnamed, unimproved road known locally as Surprise
Valley Road, section 1, T16N/R16W; then
[[Page 24381]]
(4) Proceed northeasterly along Surprise Valley Road to its
intersection with an unnamed, unimproved road known locally as North
Fork Road, section 1, T16N/R16 W; then
(5) Proceed northwesterly along North Fork Road to its intersection
with an unnamed, unimproved road known locally as Docker Hill Road in
section 36, T17N/R16W; then
(6) Proceed north along Docker Hill Road to its intersection with
the 400-foot elevation contour, section 36, T17N/R16W; then
(7) Proceed easterly along the 400-foot elevation contour to its
intersection with the North Fork of the Albion River in section 37,
T17N/R15W; then
(8) Continue in a generally southerly direction along the 400-foot
elevation contour to its intersection with an unnamed intermittent
creek in section 6, T16N/R15W; then
(9) Proceed south in a straight line to the 400-foot elevation
contour, section 6, T16N/R15W; then
(10) Proceed southeasterly, then north, then southeasterly along
the meandering 400-foot elevation contour to its intersection with the
Albion River in section 8, T16N/R15W; then
(11) Proceed westerly along the Albion River to its intersection
with a north-south tributary in section 12, T16N/R16W; then
(12) Proceed northeasterly along the tributary, returning to the
beginning point.
(d) Exclusion. The Comptche viticultural area as described in this
section is not included within the North Coast viticultural area as
described in Sec. 9.30.
Signed: April 2, 2024.
Mary G. Ryan,
Administrator.
Approved: April 3, 2024.
Aviva R. Aron-Dine,
Acting Assistant Secretary for Tax Policy.
[FR Doc. 2024-07395 Filed 4-5-24; 8:45 am]
BILLING CODE 4810-31-P