[Federal Register Volume 77, Number 56 (Thursday, March 22, 2012)]
[Rules and Regulations]
[Pages 16674-16676]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-6927]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 9

[Docket No. TTB-2011-0007; T.D. TTB-102; Re: Notice No. 121]
RIN 1513-AB82


Establishment of the Wisconsin Ledge 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 establishes the 
approximately 3,800 square-mile ``Wisconsin Ledge'' viticultural area 
in northeast Wisconsin. 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: Effective Date: April 23, 2012.

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 various 
authorities through Treasury Department Order 120-01 (Revised), dated 
January 21, 2003, to the TTB Administrator to perform the functions and 
duties in the administration and enforcement of this law.
    Part 4 of the TTB regulations (27 CFR part 4) allows the 
establishment of definitive viticultural areas and 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 and lists 
the approved American viticultural areas.

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 its 
geographic origin. The establishment of viticultural areas allows 
vintners to describe more accurately the origin of their wines to 
consumers and helps consumers to identify wines they may purchase. 
Establishment of a viticultural area 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 outlines the procedure 
for proposing an American viticultural area and provides that any 
interested party may petition TTB to establish a grape-growing region 
as a viticultural area. Section 9.12 of the TTB regulations (27 CFR 
9.12) prescribes standards for petitions for the establishment or 
modification of American viticultural areas. Such petitions must 
include the following:
    <bullet> Evidence that the area within the proposed viticultural 
area boundary is nationally or locally known by the viticultural area 
name specified in the petition;
    <bullet> An explanation of the basis for defining the boundary of 
the proposed viticultural area;
    <bullet> A narrative description of the features of the proposed 
viticultural area that affect viticulture, such as climate, geology, 
soils, physical features, and elevation, that make the proposed 
viticultural area distinctive and distinguish it from adjacent areas 
outside the proposed viticultural area boundary;
    <bullet> A copy of the appropriate United States Geological Survey 
(USGS) map(s) showing the location of the proposed viticultural area, 
with the boundary of the proposed viticultural area clearly drawn 
thereon; and
    <bullet> A detailed narrative description of the proposed 
viticultural area boundary based on USGS map markings.

Wisconsin Ledge Petition

    TTB received a petition from Steven J. DeBaker of Trout Springs 
Winery in Green Leaf, Wisconsin, to establish the ``Wisconsin Ledge'' 
American viticultural area. The proposed viticultural area contains 
approximately 3,800 square miles, with approximately 320 acres of 
vineyards in at least 14 commercially-producing vineyards and wineries, 
and an additional 70 acres projected to be planted within the next two 
years. A map that was submitted with the petition shows that the 
commercial vineyards and wineries are geographically dispersed 
throughout the proposed viticultural area. The proposed Wisconsin Ledge 
viticultural area lies in Door, Kewaunee, Manitowoc, Sheboygan, 
Ozaukee, Washington, Dodge, Fond du Lac, Calumet, Outagamie, and Brown 
Counties of northeast Wisconsin and does not overlap, or otherwise 
involve, any existing or proposed viticultural area.
    The proposed Wisconsin Ledge viticultural area is largely 
surrounded by water, including Lake Winnebago, the Fox River, Green 
Bay, and Lake Michigan. According to the petition, the region is 
heavily affected by the lasting effects of ancient glacial activity and 
the moderating marine influence of the surrounding bodies of water.
    TTB published Notice No. 121 in the Federal Register on October 14, 
2011 (76 FR 63852), proposing to establish the Wisconsin Ledge 
viticultural area. In the notice, TTB summarized the evidence from the 
petition regarding the name, boundary, and distinguishing features for 
the proposed viticultural area. The distinguishing features of the 
proposed area are its geology, geography, climate, hydrology, and 
soils. The notice also included a comparison of the distinguishing 
features to the surrounding area. For a description of the evidence 
relating to the name, boundary, and distinguishing features of the 
proposed viticultural area, see Notice No. 121.

[[Page 16675]]

Notice of Proposed Rulemaking and Comments Received

    In Notice No. 121, TTB solicited comments on the accuracy of the 
name, boundary, climactic, and other required information submitted in 
support of the petition. The comment period closed on December 13, 
2011.
    TTB received 29 comments in response to Notice No. 121. The 
commenters included 12 self-identified wine industry members, 2 
Wisconsin wine industry associations, a Wisconsin State representative, 
2 local planning commissions, a local environmental group, a local 
science museum, and 10 commenters who did not list any affiliation. All 
of the comments expressed support for the proposed Wisconsin Ledge 
viticultural area.

TTB Determination

    After careful review of the petition and the comments received in 
response to Notice No. 121, TTB finds that the evidence provided by the 
petitioner supports the establishment of the approximately 3,800 square 
mile Wisconsin Ledge viticultural area, as proposed in Notice No. 121. 
Accordingly, under the authority of the Federal Alcohol Administration 
Act and part 4 of the TTB regulations, TTB establishes the ``Wisconsin 
Ledge'' viticultural area in Door, Kewaunee, Manitowoc, Sheboygan, 
Ozaukee, Washington, Dodge, Fond du Lac, Calumet, Outagamie, and Brown 
Counties of northeast Wisconsin, effective 30 days from the publication 
date of this document.

Boundary Description

    In this final rule, TTB made minor editorial changes to clarify 
some of the language in the written boundary description published as 
part of Notice No. 121. See the narrative boundary description of the 
viticultural area in the regulatory text published at the end of this 
notice.

Maps

    The petitioner provided the required maps, and TTB lists them below 
in the regulatory text.

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. With the establishment of this viticultural area, its 
name, ``Wisconsin Ledge,'' is recognized as a name of viticultural 
significance under 27 CFR 4.39(i)(3). The text of the new regulation 
clarifies this point. Once this final rule becomes effective, wine 
bottlers using ``Wisconsin Ledge'' 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 ``Wisconsin 
Ledge'' as an appellation of origin.
    For a wine to be labeled with a viticultural area name or with a 
brand name that includes a viticultural area name or other term 
identified as being viticulturally significant in part 9 of the TTB 
regulations, at least 85 percent of the wine must be derived from 
grapes grown within the area represented by that name or other term, 
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 the 
viticultural area name or other viticulturally significant term and 
that name or term 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 viticultural area name or 
other viticulturally significant term 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 a 
viticultural area name or other term of viticultural significance that 
was used as a brand name on a label approved before July 7, 1986. See 
27 CFR 4.39(i)(2) for details.

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 a 
viticultural area 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

    This rule is not a significant regulatory action as defined by 
Executive Order 12866. Therefore, it requires no regulatory assessment.

Drafting Information

    Karen A. Thornton of the Regulations and Rulings Division drafted 
this document.

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. Subpart C is amended by adding Sec.  9.224 to read as follows:


Sec.  9.224  Wisconsin Ledge.

    (a) Name. The name of the viticultural area described in this 
section is ``Wisconsin Ledge''. For purposes of part 4 of this chapter, 
``Wisconsin Ledge'' is a term of viticultural significance.
    (b) Approved maps. The 11 United States Geological Survey 1:100,000 
scale topographic maps used to determine the boundary of the Wisconsin 
Ledge viticultural area are titled:
    (1) Door County, Wisconsin, 1986;
    (2) Kewaunee County, Wisconsin, 1985;
    (3) Manitowoc County, Wisconsin, 1986;
    (4) Sheboygan County, Wisconsin, 1986;
    (5) Ozaukee County, Wisconsin, 1986;
    (6) Washington County, Wisconsin, 1986;
    (7) Dodge County, Wisconsin, 1986;
    (8) Fond du Lac County, Wisconsin, 1986;
    (9) Calumet County, Wisconsin, 1986;
    (10) Outagamie County, Wisconsin, 1985; and
    (11) Brown County, Wisconsin, 1984.
    (c) Boundary. The Wisconsin Ledge viticultural area is located in 
northeast Wisconsin in Door, Kewaunee, Manitowoc, Sheboygan, Ozaukee, 
Washington, Dodge, Fond du Lac, Calumet, Outagamie, and Brown Counties. 
The boundary of the Wisconsin Ledge viticultural area is as described 
below:
    (1) The beginning point is shown on the Door County map and is 
located at the northern end of the Door Peninsula at the point where 
the R28E and R29E common boundary line intersects with the Lake 
Michigan shoreline at Gills Rock in Hedgehog Harbor. From the beginning 
point, proceed easterly along the Lake Michigan shoreline to Northport 
and then continue southerly along the meandering shoreline, passing in 
succession over the Kewaunee, Manitowoc, and Sheboygan County maps and 
onto the Ozaukee County map to the intersection of the Lake Michigan

[[Page 16676]]

shoreline with a line drawn as an easterly extension of County Highway 
T (locally known as Lakefield Road), east of Cedarburg; then
    (2) Proceed west on County Highway T through Cedarburg, crossing 
onto the Washington County map, passing over the North Western railroad 
single track, and continuing to the intersection of County Highway T 
with U.S. Route 45; then
    (3) Proceed north on U.S. Route 45 to the intersection of U.S. 
Route 45 with State Road 60, south of Hasmer Lake; then
    (4) Proceed westerly on State Road 60, crossing onto the Dodge 
County map, to the intersection of State Road 60 with State Road 26 at 
Casper Creek, north-northwest of Clyman Junction; then
    (5) Proceed northerly on State Road 26 to the intersection of State 
Road 26 with U.S. Route 151, north of Plum Creek in Chester Township; 
then
    (6) Proceed northerly on U.S. Route 151, passing through Waupun 
onto the Fond du Lac County map, and continue northeasterly into the 
City of Fond du Lac to the point where U.S. Route 151 turns east, and, 
from that point, continue north in a straight line to the south shore 
of Lake Winnebago in Lakeside Park; then
    (7) Proceed easterly along the southern shoreline of Lake 
Winnebago, then northerly along the eastern shoreline, crossing onto 
the Calumet County map, to the intersection of the shoreline with a 
line drawn as a southerly extension of County Highway N at Highland 
Beach in Harrison Township; then
    (8) Proceed north on County Highway N, crossing onto the Outagamie 
County map, to the intersection of County Highway N with the Fox River; 
then
    (9) Proceed northeasterly (downstream) along the Fox River, 
crossing onto the Brown County map, until the Fox River meets the 
southern shoreline of Green Bay; and then
    (10) Proceed northeasterly along the eastern shoreline of Green 
Bay, passing over the Kewaunee County map and onto the Door County map, 
to Sister Bay, where the eastern shoreline of Green Bay becomes the 
shoreline of Lake Michigan, and then continue northeasterly along the 
shoreline of Lake Michigan, returning to the beginning point.

    Signed: February 8, 2012.
John J. Manfreda,
Administrator.
    Approved: March 5, 2012.
Timothy E. Skud,
Deputy Assistant Secretary, Tax, Trade, and Tariff Policy.
[FR Doc. 2012-6927 Filed 3-21-12; 8:45 am]
BILLING CODE 4810-31-P