[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