[Federal Register Volume 89, Number 24 (Monday, February 5, 2024)]
[Rules and Regulations]
[Pages 7618-7620]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-01877]



[[Page 7618]]

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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 9

[Docket No. TTB-2022-0012; T.D. TTB-190; Ref: Notice No. 217]
RIN 1513-AC82


Expansion of the Red Hills Lake County 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) is 
expanding the ``Red Hills Lake County'' American viticultural area in 
Lake County, California by approximately 679 acres. The established 
viticultural area and the expansion area are both located entirely 
within the larger Clear Lake and North Coast viticultural areas. 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 March 6, 2024.

FOR FURTHER INFORMATION CONTACT: Kate Bresnahan, 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. 151.

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 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, 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. 
Petitioners may use the same process to request changes to established 
AVAs. Section 9.12 of the TTB regulations (27 CFR 9.12) prescribes 
standards for petitions to modify established AVAs. Petitions to expand 
an established AVA must include the following:
    Evidence that the area within the proposed expansion area boundary 
is nationally or locally known by the name of the established AVA;
    An explanation of the basis for defining the boundary of the 
proposed expansion area;
    A narrative description of the features of the proposed expansion 
area that affect viticulture, such as climate, geology, soils, physical 
features, and elevation, that make the proposed expansion area similar 
to the established AVA and distinguish it from adjacent areas outside 
the established AVA boundary;
    The appropriate United States Geological Survey (USGS) map(s) 
showing the location of the proposed expansion area, with the boundary 
of the proposed expansion area clearly drawn thereon; and
    A detailed narrative description of the proposed expansion area 
boundary based on USGS map markings.

Petition To Expand the Red Hills Lake County AVA

    TTB received a petition submitted on behalf of local vineyard 
owners, proposing to expand the established ``Red Hills Lake County'' 
AVA by adding three separately owned parcels of land covering a total 
of approximately 679 acres. The Red Hills Lake County AVA (27 CFR 
9.169) was established by T.D. TTB-15, which was published in the 
Federal Register on July 12, 2004 (69 FR 41750). The proposed expansion 
area and the established AVA are both located within the Clear Lake (27 
CFR 9.99) and North Coast AVAs (27 CFR 9.30).
    According to the expansion petition, the topography, soils, and 
climate of the proposed expansion area are similar to those of the 
established Red Hills Lake County AVA. The original petition noted that 
within the Red Hills Lake County AVA, slopes range from zero to greater 
than 30 percent, but that ``[n]o one group clearly predominates.'' When 
describing the region west of Bottle Rock Road, which is the location 
of the proposed expansion area, the original petition stated, ``almost 
all of the terrain shown has slopes of 15% and above.'' The expansion 
petition notes that, while the original AVA petition was correct that a 
large part of the region to the west of Bottle Rock Road does contain 
steep slopes, it also contains areas with gentler slopes. Figure 2 in 
the expansion petition indicates that the proposed expansion area 
contains regions with slopes from 0 to 20 percent, as well as slopes 
from 20 to over 30 percent. Additionally, the expansion petition 
includes a wider view of the slope and terrain map (Figure 6).\1\ Both 
figures show that the slope angles of the proposed expansion area are 
similar to those within the Red Hills Lake County AVA, as described in 
T.D. TTB-15. According to the original Red Hills Lake County petition, 
the major soil groups within the AVA are of volcanic origin and include 
Glenview-Bottlerock-Arrowhead, Konocti-Benridge, and Collayomi-Aiken-
Whispering. The expansion petition claims that 90 percent of the 
acreage within the proposed expansion area contains soils of the same 
soil units described in the original petition and are of volcanic 
origin. By contrast, the expansion petition notes that the region west 
of the

[[Page 7619]]

proposed expansion area and the Red Hills Lake County AVA contains 
large levels of serpentine soils, which are not found in the Red Hills 
Lake County AVA.
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    \1\ Figures 2 and 6 to the expansion petition are both included 
in Docket TTB-2022-00012 at www.regulations.gov.
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    According to the brief description of the Red Hills Lake County 
AVA's climate provided in T.D. TTB-15, the AVA has a climate that is 
more influenced by Clear Lake than by the Pacific Ocean. The 
temperature contrasts between the lake and the land create winds that 
are credited for reducing the risk of frost within the AVA. The 
proposed expansion petition explains that, today, some growers within 
the Red Hills Lake County AVA and the expansion area have frost 
protection measures in place, although those may not be needed every 
year. By contrast, the expansion petition states that vineyards in the 
established Big Valley District-Lake County AVA (27 CFR 9.232), located 
to the northwest of the proposed expansion area and Red Hills Lake 
County AVA, require the use of frost protection every year. The 
expansion petition also notes that growers within the Red Hills Lake 
County AVA and the expansion area rarely harvest grapes before October 
1, further suggesting the two regions share a similar climate. Although 
the proposed expansion area is more similar to the Red Hills Lake 
County AVA than the surrounding regions, the expansion area still 
shares some of the features of the surrounding Clear Lake and North 
Coast AVAs. For example, according to the petition, the Red Hills Lake 
County AVA, its expansion area, and the Clear Lake AVA are entirely 
within the Lake County Subwatershed. The Lake County Subwatershed gives 
both AVAs less fog and warmer temperatures than other parts of the 
North Coast AVA. The Pacific Ocean largely affects the climate in most 
parts of the North Coast AVA, while Clear Lake and the Lake County 
Subwatershed have larger effects on the Clear Lake and Red Hills Lake 
County AVAs' climate.
    According to the petition, while similar to the Clear Lake AVA in 
some ways, the Red Hills Lake County AVA differs from the larger area 
as well. For example, the petition states that the Red Hills Lake 
County AVA and its expansion area have some of the highest elevations 
in the Clear Lake AVA. The petition also notes that the Red Hills Lake 
County AVA, including its expansion area, contains mostly red volcanic 
soils. While the Clear Lake AVA contains these soils as well, the Clear 
Lake AVA petition cited ``the uniform sandy loam and clay loam soils'' 
as a distinguishing feature. The petition also describes the Red Hills 
Lake County AVA as having higher minimum and median heat summations 
than the Clear Lake AVA.

Notice of Proposed Rulemaking and Comments Received

    TTB published Notice No. 217 in the Federal Register on November 
28, 2022 (87 FR 72937), proposing to expand the Red Hills Lake County 
AVA. In the notice, TTB summarized the evidence from the petition 
regarding the name, boundary, and distinguishing features for the 
proposed expansion area. For a detailed description of the evidence 
relating to the name, boundary, and distinguishing features of the 
proposed expansion area, and for a comparison of the distinguishing 
features of the proposed expansion area to the surrounding areas and to 
the established Red Hills Lake County AVA, see Notice No. 217.
    The comment period for Notice No. 217 closed on January 27, 2023. 
In response to Notice No. 217, TTB received no comments.

TTB Determination

    After careful review of the petition, TTB finds that the evidence 
provided by the petitioner supports the expansion of the Red Hills Lake 
County. 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 modifies the boundary of the AVA, effective 30 
days from the publication date of this document.

Boundary Description

    See the narrative description of the boundary modification of the 
Red Hills Lake County 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 modified Red Hills Lake County AVA 
boundaries 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 Sec.  
4.25(e)(3) of the TTB regulations (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 Sec.  4.39(i)(2) of the TTB regulations (27 CFR 4.39(i)(2)) for 
details.
    The expansion of the Red Hills Lake County AVA will not affect any 
other existing AVA, and bottlers using ``Red Hills Lake County,'' 
``Clear Lake,'' or ``North Coast'' as an appellation of origin or in a 
brand name for wines made from grapes within the ``Red Hills Lake 
County,'' ``Clear Lake,'' or ``North Coast'' AVAs will not be affected 
by this expansion of the Red Hills Lake County AVA. The expansion of 
the Red Hills Lake County AVA will allow vintners to use ``Red Hills 
Lake County,'' ``Clear Lake,'' ``North Coast,'' or any combination of 
the three AVA names as appellations of origin for wines made primarily 
from grapes grown within the expansion area if the wines meet the 
eligibility requirements for the appellations.

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, as amended. Therefore, no regulatory assessment is required.

Drafting Information

    Kate Bresnahan of the Regulations and Rulings Division drafted this 
final rule.

List of Subjects in 27 CFR Part 9

    Wine.

[[Page 7620]]

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. Section 9.169 is amended by:
0
a. Redesignating paragraphs (c)(15) through (22) as paragraphs (c)(31) 
through (38);
0
b. Revising paragraph (c)(14); and
0
c. Adding new paragraphs (c)(15) through (30).
    The additions and revision read as follows:


Sec.  9.169  Red Hills Lake County.

* * * * *
    (c) * * *
    (14) Proceed about 0.4 mile northwesterly along Harrington Flat 
Road to its intersection with Bottle Rock Road in section 18, T21N, 
R8W; then
    (15) Proceed southerly along Bottle Rock Road approximately 2,500 
feet to its intersection with an unnamed, unimproved dirt road near the 
marked 2,928-foot elevation; then
    (16) Proceed west along the unimproved dirt road to its 
intersection with the 2,800-foot elevation contour; then
    (17) Proceed northwesterly, then northerly along the meandering 
2,800-foot elevation contour to its intersection with the northern 
boundary of section 18, T12N, R8W; then
    (18) Proceed easterly along the northern boundary of section 18 to 
its intersection with Bottle Rock Road; then
    (19) Proceed north along Bottle Rock Road to its intersection with 
an unnamed trail in section 7, T12N, R8W; then
    (20) Proceed west in a straight line to the western boundary of 
section 7, T12N, R8W; then
    (21) Proceed north along the western boundary of section 7 to the 
southeastern corner of section 1, T12N, R9W; then
    (22) Proceed west along the southern boundary of section 1 to its 
intersection with the 2,600-foot elevation contour; then
    (23) Proceed north in a straight line to the intersection with an 
unnamed, unimproved dirt road known locally as Helen Road; then
    (24) Proceed west in a straight line to the fourth intersection 
with the 2,560-foot elevation contour in section 1, T12N, R9W; then
    (25) Proceed south in a straight line to the southern boundary of 
section 1; then
    (26) Proceed west along the southern boundary of section 1 to its 
intersection with the western boundary of section 1; then
    (27) Proceed north along the western boundary of section 1 to its 
intersection with the northern boundary of section 1; then
    (28) Proceed east along the northern boundary of section 1 to its 
intersection with the 2,000-foot elevation contour; then
    (29) Proceed southeasterly along the 2,000-foot elevation contour 
to its intersection with Bottle Rock Road; then
    (30) Proceed northwesterly along Bottle Rock Road to its 
intersection with Cole Creek Road to the west and an unnamed, 
unimproved road to the east in section 25, T13N, R9W; then
* * * * *

    Signed: January 22, 2024.
Mary G. Ryan,
Administrator.
    Approved: January 23, 2024.
Thomas C. West, Jr.,
Deputy Assistant Secretary (Tax Policy).
[FR Doc. 2024-01877 Filed 2-2-24; 8:45 am]
BILLING CODE 4810-31-P