[Federal Register Volume 89, Number 209 (Tuesday, October 29, 2024)]
[Rules and Regulations]
[Pages 85852-85854]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-25076]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 9

[Docket No. TTB-2022-0014; T.D. TTB-198; Ref: Notice No. 219, 219A]
RIN 1513-AD00


Establishment of the Beverly, Washington 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 2,415-acre ``Beverly, Washington'' viticultural area 
(AVA) in Grant County, Washington. The Beverly, Washington AVA is 
located entirely within the established Columbia Valley AVA. 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 November 29, 2024.

FOR FURTHER INFORMATION CONTACT: Mimi Torello, 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. 432.

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 has delegated 
certain administration and enforcement of these 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. 
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:
    <bullet> Evidence that the area within the proposed AVA boundary is 
nationally or locally known by the AVA name specified in the petition;
    <bullet> An explanation of the basis for defining the boundary of 
the proposed AVA;
    <bullet> 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;
    <bullet> 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; and

[[Page 85853]]

    <bullet> 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
    <bullet> A detailed narrative description of the proposed AVA 
boundary based on USGS map markings.

Notice of Proposed Rulemakings and Comments Received

    TTB received a petition on behalf of Zirkle Fruit Company and local 
vineyard owners and winemakers proposing to establish the ``Wanapum 
Village'' AVA in Grant County, Washington. TTB proposed the 
establishment of the AVA in Notice No. 219, which published in the 
Federal Register on November 28, 2022 (87 FR 72927). In the notice, TTB 
summarized the evidence from the petition regarding the name, boundary, 
and distinguishing features for the proposed AVA. The notice also 
included information from the petition comparing 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. 219. The comment period closed on 
January 27, 2023. TTB received no comments in response to Notice No. 
219.
    However, after the comment period closed, TTB received a request 
from the original petitioner asking to change the name of the proposed 
AVA from ``Wanapum Village'' to ``Beverly, Washington.'' The petitioner 
stated that members of the Wanapum tribe expressed concerns about the 
use of their name for an AVA. The petitioner included sufficient name 
evidence to support the proposed name change.
    As a result of the request, TTB published Notice No. 219A in the 
Federal Register on October 5, 2023 (88 FR 69113), proposing to change 
the name of the proposed Wanapum Village AVA to ``Beverly, 
Washington.'' No other changes to the proposed AVA were included in 
Notice No. 219A. The comment period closed December 4, 2023. TTB 
received one comment in response to Notice No. 219A. The anonymous 
public comment expressed support for use of the name ``Beverly, 
Washington'' for the AVA, based both on respect for the Wanapum tribe 
regarding use of their name and ``Beverly'' being a common name used in 
the local community to describe the region.

TTB Determination

    After careful review of the petition and comment, TTB finds that 
the evidence provided by the petitioner supports the establishment of 
the Beverly, Washington 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 ``Beverly, 
Washington'' AVA in Grant County, effective 30 days from the 
publication date of this document.
    TTB has also determined that the Beverly, Washington AVA will 
remain part of the established Columbia Valley AVA. As discussed in 
Notice No. 219, the Beverly, Washington AVA shares some of the general 
viticultural features of the larger Columbia Valley AVA, such as 
elevations being below 2,000 feet and annual growing degree day (GDD) 
accumulations \1\ that did not fall below 2,800. However, the Beverly, 
Washington AVA has some distinctive features, namely its soils. Within 
the Beverly, Washington AVA, soils are primarily formed from sand and 
gravel deposited by water and are classified as sand and stony loamy 
sand. By contrast, T.D. ATF-190, which established the Columbia Valley 
AVA, described the soils of the Columbia Valley AVA as fine-grained 
soils derived from wind-deposited silts and fine sand.
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    \1\ 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, measured in annual GDDs, defines climatic regions. 
One GDD accumulates for each degree Fahrenheit (F) that a day's mean 
temperature is above 50 degrees F, the minimum temperature required 
for grapevine growth.
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The Beverly, Washington Viticultural Area

    Distinguishing features of the Beverly, Washington AVA include low, 
rolling hills with gentle to moderate slopes at an elevation of 515 to 
950 feet. Soils are derived from ice-age flood deposits of sand and 
gravel mixed with wind-deposited sand and are excessively to somewhat 
excessively well-drained. The four main soil series dominating the 
Beverly, Washington AVA are the Burbank, Winchester, Schwana, and 
Quincy series. According to the petition, soils within the AVA are 
coarse soils, which are less susceptible to erosion than soils formed 
in silt and fine sand; therefore, cover crops are not currently used in 
the AVA. Also, coarse-textured soils without cover crops warm faster 
than fine-grained soils. Such warmer soils promote earlier onset of 
phenological states in grapes, such as bud break and veraison.
    Climate in the Beverly, Washington AVA is warm and windy with a 
higher average growing season temperature, and higher GDD accumulations 
than most of the surrounding regions. The average growing season 
temperatures for the AVA range from 65.8 degrees Fahrenheit to 71.8 
degrees Fahrenheit, with an average maximum temperature ranging from 
78.2 degrees Fahrenheit to 85.9 degrees Fahrenheit. GDD accumulations 
within the AVA range from 2,816 to 3,593. Wind speeds within the AVA 
are also high, with average wind speeds ranging from 7.1 miles per hour 
to 7.8 miles per hour. Maximum wind speeds can reach 28.2 miles per 
hour. According to the petition, warm temperatures and high GDD 
accumulations within the Beverly, Washington AVA allow vineyard owners 
to plant warmer-climate cultivars that require more heat to ripen. 
Additionally, cooler climate grape varietals planted in the AVA will 
ripen faster and accumulate more sugars than the same varietals planted 
in cooler regions. High winds within the AVA can reduce mildew pressure 
on the vines and promote development of smaller grapes with thicker 
skins.
    To the west of the Beverly, Washington AVA is the Columbia River 
floodplain with elevations between 500 and 530 feet. Regions to the 
north and east of the AVA, which include the established Royal Slope 
AVA (27 CFR 9.271), have finer-grained soils, lower temperatures, and 
are less windy. The topography of the regions to the north and east of 
the AVA consists of a single gentle slope with elevations up to 1,756 
feet. The soils within the Royal Slope AVA also differ from those of 
the Beverly, Washington AVA and consist of fewer medium-to coarse-
grained soils.
    To the immediate south of the Beverly, Washington AVA is a rugged 
1,500-foot deep, 1.5-mile-wide cliff-walled canyon known as Sentinel 
Gap. This region has soils that are defined as ``rubble land-rock 
outcrop complex,'' making this particular area unsuitable for 
viticulture. Regions farther to the south, including the established 
Wahluke Slope AVA (27 CFR 9.192), are gently sloping and have soils 
similar to the Beverly, Washington AVA. Data suggests that temperatures 
in the established Wahluke Slope AVA are more varied than in the 
Beverly, Washington AVA, with some locations reporting similar 
temperatures and GDD accumulations, while other locations reported 
higher or lower temperatures and GDD accumulations. However, the 
average and maximum wind speeds in the Beverly, Washington AVA are

[[Page 85854]]

generally higher than in the Wahluke Slope AVA.

Boundary Description

    See the narrative description of the boundary of the Beverly, 
Washington 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 Beverly, Washington 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 Beverly, Washington AVA, its name, 
``Beverly, Washington,'' 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 ``Beverly, Washington'' 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 Beverly, Washington AVA will not affect 
any existing AVA. The establishment of the AVA will allow vintners to 
use ``Beverly, Washington'' or ``Columbia Valley'' as an appellation of 
origin for wines made primarily from grapes grown within the 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 of September 30, 
1993, as amended. Therefore, no regulatory assessment is required.

Drafting Information

    Mimi Torello 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:

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.  9.297 to subpart C to read as follows:


Sec.  9.297   Beverly, Washington.

    (a) Name. The name of the viticultural area described in this 
section is ``Beverly, Washington''. For purposes of part 4 of this 
chapter, ``Beverly, Washington'' 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 Beverly, Washington (2017).
    (c) Boundary. The Beverly, Washington viticultural area is located 
in Grant County, Washington. The boundary of the Beverly, Washington 
viticultural area is described as follows:
    (1) The beginning point is on the Beverly, Washington map at the 
intersection of State Highway 243 and southern boundary of section 34 
just north of the town of Schwana. From the beginning point, proceed 
northwest along Highway 243 to its intersection with an unnamed local 
road on the north side of Wanapum Village, near the center of section 
21; then
    (2) Proceed east in a straight line for 2,450 feet to the 600-foot 
elevation contour; then
    (3) Proceed southeasterly along the 600-foot elevation contour for 
approximately 1,500 feet to its intersection with an unnamed local road 
in section 22; then
    (4) Proceed northeasterly along the unnamed local road for 
approximately 3,000 feet to its intersection with another unnamed local 
road; then
    (5) Proceed north-northeast in a straight line for approximately 
500 feet to the intersection of Beverly Burke Road and an unnamed local 
road; then
    (6) Proceed northeasterly along Beverly Burke Road to the point 
where it becomes concurrent with the northern boundary of section 22, 
and continue east along Beverly Burke Road to its intersection with the 
eastern boundary of section 22; then
    (7) Proceed south along the eastern boundary of section 22 for one 
mile to its intersection with the northern boundary of section 26; then
    (8) Proceed east along the northern boundary of section 26 for one 
mile to its intersection with the eastern boundary of section 26; then
    (9) Proceed south along the eastern boundary of section 26 to its 
intersection with the 540-foot elevation contour; then
    (10) Proceed southwesterly along the 540-foot elevation contour to 
its intersection with the southern boundary of section 26; then
    (11) Proceed west along the southern boundary of section 26 to its 
intersection with the eastern boundary of section 34; then
    (12) Proceed south along the eastern boundary of section 34 for 1 
mile to its intersection with the southern boundary of section 34; then
    (13) Proceed west along the southern boundary of section 34 for 0.5 
mile to the beginning point.

    Signed: October 22, 2024.
Mary G. Ryan,
Administrator.
    Approved: October 23, 2024.
Aviva R. Aron-Dine,
Deputy Assistant Secretary, Tax Policy.
[FR Doc. 2024-25076 Filed 10-28-24; 8:45 am]
BILLING CODE 4810-31-P