[Federal Register Volume 91, Number 56 (Tuesday, March 24, 2026)]
[Rules and Regulations]
[Pages 13970-13974]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2026-05731]
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DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade Bureau
27 CFR Part 9
[Docket No. TTB-2023-0008; T.D. TTB-205; Re: Notice No. 226]
RIN 1513-AD00
Establishment of the Nine Lakes of East Tennessee 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 4,064-square mile ``Nine Lakes of East Tennessee''
American viticultural area (AVA) in northeastern Tennessee. The Nine
Lakes of East Tennessee AVA 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.
DATES: This final rule is effective April 23, 2026.
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 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 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 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.
Nine Lakes of East Tennessee AVA Petition
TTB received a petition from the Appalachian Region Wine Producers
Association, proposing the establishment of the ``Nine Lakes of East
Tennessee'' AVA. The proposed AVA is in Anderson, Blount, Campbell,
Claiborne, Cocke, Grainger, Hamblen, Jefferson, Knox, Loudon, Monroe,
Roane, Sevier, and Union Counties in Tennessee. The proposed AVA
contains approximately 4,064-square miles (2,601,390 acres) with
approximately 232 acres of planted vineyards spread across the proposed
AVA. There are also 29 wineries within the proposed AVA. According to
the petition, the distinguishing features of the proposed Nine Lakes of
East Tennessee AVA are its geology, soils, topography, and climate.
According to the petition, the proposed Nine Lakes of East
Tennessee AVA is located in the Valley and Ridge Province of eastern
Tennessee and contains all or portions of the 14 counties that surround
the nine lakes formed by the Tennessee Valley Authority dams along the
Tennessee River. The geology of the proposed AVA consists almost
entirely of sedimentary rocks initially deposited during the Paleozoic
Era, when an ocean covered most of eastern North America. The folding
and fracturing of the sediments and rocks formed ridges and valleys
with southwest-to-northeast orientations. The petition states that the
[[Page 13971]]
orientation of these ridges and valleys allows vineyard owners to
select locations with slope aspects that allow for first light to dry
the heavy dew from the vines and thus help in disease prevention. The
slope aspects also shade vines from the evening sun and thus prevent
excessive heat on the grape clusters. Elevations within the proposed
AVA range from 1,100 to 1,500 feet in the ridges and 700 to 1,000 feet
in the valleys.
The petition states that the geology of the regions to the north
and south of the proposed AVA is similar to that of the proposed AVA,
given that all three locations are part of the Valley and Ridge
Province. However, elevations north of the proposed AVA are higher,
while elevations to the south are lower. To the east is the Appalachian
Mountain System which is comprised of Lower Paleozoic limestone,
dolomite, and shale with exposures of Precambrian igneous and
metamorphic basement rocks such as tuff, rhyolite, granite, schist, and
quartzite, as well as Precambrian sedimentary and metamorphic
sandstone, conglomerate, arkose, and siltstone. Elevations in this
region range from 1,000 to 6,643 feet. To the west of the proposed AVA
are the Cumberland Plateau and Cumberland Escarpment, which consist of
uplifted caprock of Pennsylvanian age sandstone and conglomerate.
Average elevations west of the proposed AVA range from 1,500 to 1,800
feet.
The soils of the proposed Nine Lakes of East Tennessee AVA are
classified as Ultisols, which the petition describes as soils that are
``strongly leached, acid forest soils with low native fertility'' and a
clay-enriched subsoil. Soil depth ranges from shallow to very deep. The
soils have a udic soil moisture regime and an average temperature of 59
to 72 degrees Fahrenheit (F) at a depth of 20 inches. The petition
states that timely application of fertilizer and lime in vineyards are
important to maximize grape yield in these soils.
To the north and south of the proposed AVA, the soils are similar,
because all three regions are in the Valley and Ridge Province. To the
east of the proposed AVA, soils are commonly well-drained and acidic
and can be shallow to very deep. The primary soil orders are
Inceptisols and, to a significantly lesser extent, Ultisols. The soils
have an udic soil moisture regime, and the average annual soil
temperature regimes are mesic (between 47 and 59 degrees F) and frigid
(lower than 46.4 degrees F). West of the proposed AVA, the main soil
orders are Inceptisols and Ultisols with a thermic or mesic soil
temperature regime and an udic soil moisture regime.
According to the petition, the climate of the proposed Nine Lakes
of East Tennessee AVA is warmer than that of each of the surrounding
regions except the region to the south. The mean growing season length
\1\ within the proposed AVA is 212.8 days. The average growing season
growing degree day (GDD) accumulation is 3,837, placing the proposed
AVA in Winkler Region IV.\2\ The average maximum temperature is 69
degrees F, while the average minimum temperature is 45 degrees F,
placing the proposed AVA in USDA Plant Hardiness Zone 7a. Average
annual precipitation amounts total 51.09 inches. According to the
petition, the climate of the proposed AVA is suitable for growing a
wide variety of grapes, including vinifera, hybrid, native, and
muscadine varietals.
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\1\ Defined as the period between last spring frost and first
fall frost.
\2\ 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, measures in Growing Degree Days (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. The Winkler scale regions
are as follows: Region 1a, 1,500-2,000 GDDs; Region 1b, 2,000-2,500
GDDs, Region II, 2,500-3,000 GDDs; Region III, 3,000-3,500 GDDs;
Region IV, 3,500-4,000 GDDs; Region V, 4,000-4,900 GDDs.
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To the northeast of the proposed AVA, the mean growing season is
shorter, and the region is classified as a Winkler Region III with
fewer GDDs than the proposed AVA. The region is also in USDA Plant
Hardiness Zone 6b, with lower average maximum and minimum temperatures
and lower annual precipitation amounts than the proposed AVA. To the
east, the climate is also cooler than within the proposed AVA, with a
shorter growing season length, fewer GDDs, a Winkler Region II
classification, lower average maximum and minimum temperatures, and a
USDA Plant Hardiness Zone classification of 6b. However, average annual
rainfall amounts east of the proposed AVA are higher. To the south, the
mean growing season length is longer, the average minimum and maximum
temperatures are higher, GDD accumulations are higher and place the
region in Winkler Region V, and average annual precipitation amounts
are higher. West of the proposed AVA, the average growing season length
is almost identical. Although the region to the west is also a Winkler
Region IV, it accumulates slightly fewer GDDs annually than the
proposed AVA. Average annual maximum and minimum temperatures are
slightly cooler, placing it in USDA Plant Hardiness Zone 6b. Annual
precipitation amounts west of the proposed AVA are higher.
Notice of Proposed Rulemaking and Comments Received
TTB published Notice No. 226 in the Federal Register on September
20, 2023 (88 FR 64846), proposing to establish the Nine Lakes of East
Tennessee 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 for a detailed
comparison of the distinguishing features of the proposed AVA to the
surrounding areas, see Notice No. 226. In Notice No. 226, 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 November 20, 2023.
Comments Received
In response to Notice No. 226, TTB received nine comments. One
comment received through regulations.gov was a request for contact
about a registration unrelated to the proposed AVA, the AVA program, or
TTB rulemaking. That comment is not posted to the docket. The eight
remaining comments were from the Tennessee Wine and Grape Board, the
Appalachian Region Wine Producers Association (the submitter of the
petition to establish the AVA), the Union County Chamber of Commerce,
the Tennessee Farm Winegrowers Alliance, and members of the public.
Seven of the comments (comments 2 through 8) express full support for
the proposed AVA as a way to increase tourism, new businesses, and
public awareness of wines produced from grapes grown in the region.
One comment (comment 1) provided additional input on the proposed
AVA's name, location, and ``distinguishing features that set it apart
from the surrounding regions.'' It acknowledges the distinctiveness of
the proposed AVA and describes awards that several local wine producers
have won. However, the comment also notes ``some disadvantages that may
affect its recognition and value.'' The commenter states that its size
may make it difficult ``to maintain a consistent identity and quality
among the wines produced in
[[Page 13972]]
the region,'' which might ``dilute the significance and recognition of
the appellation'' among consumers and trade. The comment also stated
that the relatively low number of vineyards and wineries (specifically
19 vineyards with a total of 232 acres of planted vines and 10
wineries) within the proposed AVA may ``limit the availability and
diversity'' of wines from the area and could indicate a ``lack of
interest and investment in grape growing and wine making in the
region.'' Finally, the comment states that establishing the proposed
Nine Lakes of East Tennessee AVA may overlap with the ``Rocky Top AVA''
and the ``Great Valley of East Tennessee AVA,'' and create confusion in
labeling and marketing of wines from these areas, or ``undermine the
distinctiveness and value'' of the ``Rocky Top AVA and the Great Valley
of East Tennessee AVA.''
TTB Response
As noted above, TTB establishes AVAs to allow winemakers to better
describe, in labeling and advertising, the origins of their wines and
to allow consumers to better identify wines they may purchase. TTB
reviews any petition for the establishment of an AVA based on the
criteria set forth in its regulations and on comments received on those
criteria from interested parties during the public comment period. The
extent to which wines from an established AVA ultimately achieve
recognition depends on a number of factors beyond the establishment of
the AVA and is not considered in determining whether to establish a
proposed AVA. With respect to the concern that the large size of the
proposed AVA may make it difficult for winemakers to maintain a
consistent identity and/or quality among the wines produced within the
region, TTB believes that the petition adequately demonstrated the
similar grape-growing conditions throughout the proposed AVA, and no
comments were received that disputed that information or raised
questions about the distinguishing features. However, TTB recognizes
that differences in quality and character of wines can occur in wines
from AVAs of any size as a result of the skills and preferences of the
winemakers rather than to differences in soils, climate, or topography
within the AVA.
Regarding the number of wineries, vineyards, and acres of vines
within the proposed AVA, TTB does not take a position with regard to
whether the total vineyard acreage or number of wineries within a
proposed AVA suggests a level of current or future interest or
investment in grape growing or wine making. Any future growth that may
occur in the region would be due to the efforts of vineyard owners and
winemakers in the region and customer acceptance of the wines.
Finally, with regard to a concern that the proposed AVA overlaps
``the Rocky Top AVA and the Great Valley of East Tennessee AVA,'' TTB
notes that there are no AVAs located within the proposed Nine Lakes of
East Tennessee AVA. While ``Rocky Top'' and the ``Great Valley of East
Tennessee'' may be locally known names of winemaking regions, they are
not approved AVAs under TTB regulations.
TTB Determination
After careful review of the petition and the comments received in
response to Notice 226, TTB finds that the evidence provided by the
petitioner supports establishing the Nine Lakes of East Tennessee AVA
as proposed. 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 ``Nine Lakes of East Tennessee''
AVA in northeastern Tennessee, effective 30 days from the publication
date of this document.
Boundary Description
See the narrative description of the boundary of the Nine Lakes of
East Tennessee 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 Nine Lakes of East Tennessee 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 Nine Lakes of East Tennessee AVA, its
name, ``Nine Lakes of East Tennessee,'' 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 ``Nine Lakes of East
Tennessee'' 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.
Establishing the Nine Lakes of East Tennessee AVA will not affect
any existing AVA. Establishing the Nine Lakes of East Tennessee AVA
will allow vintners to use ``Nine Lakes of East Tennessee'' as an
appellation of origin for wines made primarily from grapes grown within
the Nine Lakes of East Tennessee 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, as amended.
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:
[[Page 13973]]
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. 9.300 to subpart C to read as follows:
Sec. 9.300 Nine Lakes of East Tennessee AVA.
(a) Name. The name of the viticultural area described in this
section is ``Nine Lakes of East Tennessee''. For purposes of part 4 of
this chapter, ``Nine Lakes of East Tennessee'' is a term of
viticultural significance.
(b) Approved maps. The 6 United States Geological Survey (USGS)
1:100,000 scale topographic maps used to determine the boundary of the
Nine Lakes of East Tennessee viticultural area are:
(1) Middlesboro, KY-Tenn.-VA, 1977;
(2) Morristown, Tennessee, 1981;
(3) Knoxville, Tenn.-N.C., 1983;
(4) Oak Ridge, Tennessee, 1979;
(5) Watts Bar Lake, Tennessee, 1981; and
(6) Cleveland, Tennessee-N.C., 1981.
(c) Boundary. The Nine Lakes of East Tennessee viticultural area is
located in Anderson, Blount, Campbell, Claiborne, Cocke, Grainger,
Hamblen, Jefferson, Knox, Loudon, Monroe, Roane, Sevier, and Union
Counties, Tennessee. The boundary of the viticultural area is described
as follows:
(1) The beginning point is on the Middlesboro map at the
intersection of the shared Hancock-Claiborne County line and the shared
Virginia-Tennessee State line. From the beginning point, proceed west
along the Virginia-Tennessee State line for 10.13 miles to the boundary
of the Cumberland Gap National Historical Park; then
(2) Proceed southwest, then northwest along the park boundary for
approximately 4.78 miles to its intersection with the 500-meter
elevation contour on Powell Mountain; then
(3) Proceed southwest, then northeast, then southwest along the
meandering 500-meter elevation contour for approximately 11.18 miles,
crossing onto the Morristown map, and continuing along the 500-meter
elevation contour for approximately 10.38 miles, crossing onto the Oak
Ridge map, and continuing along the 500-meter elevation contour for 8.7
miles to the point where it turns sharply northeast just east of
Highway 25W and north of Lafollette; then
(4) Proceed west in a straight line for approximately 0.49 mile,
crossing over Highway 25W, to the 500-meter elevation contour; then
(5) Proceed southwest, then northeast along the 500-meter elevation
contour for approximately 7.46 miles to its intersection with and
unnamed tributary of Bruce Creek; then
(6) Proceed west in a straight line to Interstate 75; then
(7) Proceed south in a straight line for approximately 6.34 miles
to the intersection of the Campbell and Anderson County lines; then
(8) Proceed south along the shared Campbell-Anderson County line
for approximately 6.28 miles, crossing over Stony Fork, to the
intersection with an unnamed trail running southwest-to-northeast along
Windrock Mountain; then
(9) Proceed southwest in a straight line for 9.26 miles to the
intersection with the shared Anderson-Morgan County line; then
(10) Proceed southeast along the Anderson-Morgan County line for
approximately 5.59 miles to its intersection with the Roane County
line; then
(11) Proceed southwest along the shared Roane-Morgan County line
for approximately 5.65 miles, crossing onto the Watts Bar Lake map, and
continuing along the Roane-Morgan County line to its intersection with
the Cumberland County line; then
(12) Proceed southwest in a straight line for approximately 8.82
miles to the intersection of the Roane and Rhea County lines and State
Road 29; then
(13) Proceed southerly along the shared Roane-Rhea County line for
approximately 5.47 miles to its intersection with the Meigs County
line; then
(14) Proceed south-southeast along the Roane-Meigs County line to
its intersection with the McMinn County line; then
(15) Proceed east along the shared Roane-McMinn County line for 1.8
miles to the intersection with the Loudon County line; then
(16) Proceed south, then easterly along the shared Loudon-McMinn
County line to its intersection with the Monroe County line; then
(17) Proceed south, then southeast along the shared McMinn-Monroe
County line for approximately 10.56 miles, crossing onto the Cleveland,
Tennessee-North Carolina map, and continuing along the shared McMinn-
Monroe County line for approximately 13.67 miles to the intersection
with an unnamed highway known locally as State Road 39/Mecca Highway;
then
(18) Proceed southeast along State Road 39 for approximately 3.04
miles to its intersection with the Cherokee National Forest boundary,
which is concurrent with Conasauga Creek; then
(19) Proceed southeasterly, then northerly along the Cherokee
National Forest boundary for approximately 23.67 miles, crossing onto
the Watts Bar Lake map, and continue northeasterly, then easterly along
the forest boundary for approximately 15.35 miles as it meanders east
through Tellico Lake and becomes concurrent with the Blount-Monroe
County line and crosses onto the Knoxville, Tennessee-North Carolina
map, to the forest boundary's intersection with Abrams Creek; then
(20) Proceed north in a straight line for approximately 1,500 feet
to the Great Smoky Mountains National Park boundary; then
(21) Proceed northeast, then southeast, then northeast along the
park boundary line for a total of approximately 51.47 miles to its
intersection with the shared Cocke-Sevier County line near Rocky Grove;
then
(22) Proceed northeast in a straight line for 6.15 miles to the
intersection of the Cherokee National Forest boundary with Highway 321/
State Road 32 and Rabbit Branch near Allen Grove; then
(23) Proceed east along the forest boundary for 1.99 miles to its
intersection with Interstate 40; then
(24) Proceed north along Interstate 40 for 2.98 miles to its
intersection with Highway 321; then
(25) Proceed northeast along the forest boundary for 3.12 miles to
its intersection with State Road 73 at Edwina; then
(26) Proceed northeast in a straight line for 9.2 miles, crossing
onto the Morristown map, and continuing northeast in a straight line
for 4.16 miles to the shared Greene-Cocke County line; then
(27) Proceed northwest along the Greene-Cocke County line to its
intersection with the Hamblen County line; then
(28) Proceed northeast along the Hamblen-Greene County line to its
intersection with the Hawkins County line; then
(29) Proceed northwest, then southwest along the Hawkins-Hamblen
County line to its intersection with the Grainger County line; then
(30) Proceed northwesterly along the Hawkins-Grainger County line
to its intersection with the Hancock County line; then
(31) Proceed west along the Grainger-Hancock County line to its
intersection with the Claiborne County line; then
[[Page 13974]]
(32) Proceed north along the Hancock-Claiborne County line for
approximately 8.14 miles, crossing onto the Middlesboro map, and
continuing northwest along the Hancock-Claiborne County line for
approximately 8.51 miles to return to the beginning point.
Signed: March 16, 2026.
Mary G. Ryan,
Administrator.
Approved: March 16, 2026.
Kenneth J. Kies,
Assistant Secretary (Tax Policy).
[FR Doc. 2026-05731 Filed 3-23-26; 8:45 am]
BILLING CODE 4810-31-P