32186 Federal Register / Vol. 86, No. 115 / Thursday, June 17, 2021 / Rules and Regulations 

§ 1.263A–4 [Amended] 

■ Par. 3. Section 1.263A–4 is amended 

by: 

■ 1. Removing the language ‘‘(a)(4)’’ 

from the first sentence of paragraph 

(a)(1) and adding ‘‘(a)(5)’’ in its place, 

■ 2. Adding the language ‘‘(a)(3)’’ to the 

first sentence of paragraph (a)(4), after 

the language ‘‘(a)(2),’’, 

■ 3. Removing the language ‘‘(a)(4)’’ 

from paragraph (a)(5)(iii) and adding 

‘‘(a)(5)’’ in its place, and 

■ 4. Removing the last sentence of 

paragraph (a)(5)(iii) Example 1. 

■ Par. 4. Section 1.263A–15 is amended 

by adding paragraph (a)(5) to read as 

follows: 

§ 1.263A–15 Effective dates, transitional 

rules, and anti-abuse rule. 

(a) * * * 

(5) The last sentence of each of 

§ 1.263A–8(a)(1) and § 1.263A–9(e)(2) 

apply to taxable years beginning on or 

after January 5, 2021. However, for a 

taxable year beginning after December 

31, 2017, and before January 5, 2021, a 

taxpayer may apply the last sentence of 

each of § 1.263A–8(a)(1) and § 1.263A– 

9(e)(2), provided that the taxpayer 

follows all the applicable rules 

contained in the regulations under 

section 263A for such taxable year and 

all subsequent taxable years. 

* * * * * 

§ 1.448–2 [Amended] 

■ Par. 5. Section 1.448–2 is amended by 

removing the language ‘‘(g)(3)’’ from the 

sixth sentence of paragraph (g)(1) and 

adding ‘‘(g)’’ in its place. 

■ Par. 6. Section 1.460–0 is amended by 

revising the entry for § 1.460–3(b)(3) and 

adding entry (b)(3)(iii) to read as 

follows: 

§ 1.460–0 Outline of regulations under 

section 460. 

* * * * * 

§ 1.460–3 Long-term construction 

contracts. 

* * * * * 

(b) * * * 

(3) Gross receipts test. 

* * * * * 

(iii) Method of accounting. 

* * * * * 

§ 1.460–3 [Amended] 

■ Par. 7. Section 1.460–3 is amended by 

removing the language ‘‘Example’’ from 

the heading of paragraph (b)(3)((ii)(D) 

and adding ‘‘Examples’’ in its place. 

■ Par. 8. Section 1.460–6 is amended by 

revising the second sentence of 

paragraph (c)(3)(vi) to read as follows: 

§ 1.460–6 Look-back method. 

* * * * * 

(c) * * * 

(3) * * * 

(vi) * * * Thus, the taxes, if any, 

imposed under sections 55 and 59A 

(relating to alternative and base erosion 

minimum tax, respectively) must be 

taken into account.* * * 

* * * * * 

Crystal Pemberton, 

Senior Federal Register Liaison, Legal 

Processing Division, Associate Chief Counsel, 

(Procedure and Administration). 

[FR Doc. 2021–12550 Filed 6–16–21; 8:45 am] 

BILLING CODE 4830–01–P 

DEPARTMENT OF THE TREASURY 

Alcohol and Tobacco Tax and Trade 

Bureau 

27 CFR Part 9 

[Docket No. TTB–2020–0004; T.D. TTB–167; 

Ref: Notice No. 189] 

RIN 1513–AC57 

Establishment of the White Bluffs 

Viticultural Area 

AGENCY: Alcohol and Tobacco Tax and 

Trade Bureau, Treasury. 

ACTION: Final rule; Treasury decision. 

SUMMARY: The Alcohol and Tobacco Tax 

and Trade Bureau (TTB) establishes the 

93,738-acre ‘‘White Bluffs’’ viticultural 

area in Franklin County, Washington. 

The White Bluffs viticultural area is 

located entirely within the existing 

Columbia Valley 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 July 

19, 2021. 

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 the functions 

and duties in the administration and 

enforcement of these provisions to the 

TTB Administrator through Treasury 

Order 120–01, dated December 10, 2013 

(superseding Treasury Order 120–01, 

dated January 24, 2003). 

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 provides that any interested party 

may petition TTB to establish a grapegrowing 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; 


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Federal Register / Vol. 86, No. 115 / Thursday, June 17, 2021 / Rules and Regulations 32187 

• 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. 

White Bluffs Petition 

TTB received a petition from Kevin 

Pogue, on behalf of local winemakers 

and vineyard owners, proposing to 

establish the ‘‘White Bluffs’’ AVA. The 

proposed AVA is located in Franklin 

County, Washington, and lies entirely 

within the established Columbia Valley 

AVA (27 CFR 9.74). Within the 93,738- 

acre proposed AVA, there are 9 

commercial vineyards covering a total of 

approximately 1,127 acres, along with 1 

winery. The distinguishing features of 

the proposed White Bluffs AVA are its 

topography, geology, soils, and climate. 

The proposed White Bluffs AVA is 

located on a broad plateau that rises, on 

average, 200 feet above the surrounding 

landscape. The Ringold and Koontz 

Coulees divide the plateau into two 

distinct areas capped by flat regions 

with relatively even surfaces and southfacing slope aspects. Elevations within 

the proposed AVA range from 700 feet 

in the coulees to approximately 1,200 

feet in the northeastern section of the 

proposed AVA. The majority of the 

proposed AVA has elevations between 

800 and 1,000 feet. By contrast, the 

regions surrounding the proposed AVA 

are on the floor of the Columbia Valley 

and have lower elevations. According to 

the petition, the relatively flat terrain of 

the proposed AVA provides gently 

sloping vineyard sites. Southern aspects 

allow vines to absorb more solar energy 

per unit area than regions without a 

southern aspect. Greater solar energy 

absorption promotes an earlier onset of 

bud break, flowering, veraison, and 

harvest. The petition also states that 

vineyards planted on the plateau have a 

longer growing season than vineyards 

on the valley floor, where cold air pools 

and increases the risk of frost. 

Beneath the proposed White Bluffs 

AVA is a thick layer of sedimentary 

rocks called the Ringold Formation, 

which was formed in lakes and rivers 

between 8.5 and 3.4 million years ago. 

The Ringold Formation overlies 

Columbia River basalt bedrock. The 

upper part of the Ringold Formation 

contains an erosion-resistant layer 

commonly referred to as caliche. This 

layer reaches depths of at least 15 feet 

and limits root penetration and the 

water-holding capabilities of the soil. As 

a result, areas with thick layers of 

caliche must undergo ripping with 

bulldozers to break up the caliche before 

planting vineyards. By contrast, the 

Ringold Formation and the caliche layer 

are much thinner or entirely absent in 

the regions surrounding the proposed 

AVA, allowing roots to come into 

contact with the basalt bedrock and a 

variety of minerals including olivine 

and plagioclase feldspar. 

The soils of the proposed AVA derive 

from wind-deposited silt and fine sand 

overlying sediment deposited by ice-age 

floods. Most of the flood sediment is a 

mixture of silt and sand that settled out 

of suspension in glacial Lake Lewis. The 

thickness of the flood sediment 

gradually increases with decreasing 

elevation, since there were multiple iceage floods of varying intensity and the 

lower elevations were flooded more 

frequently. As a result, the soil depths 

on the plateau that comprises the 

proposed AVA are likely to be thinner 

than those of the surrounding valley 

floor. The thinness of the soils in the 

proposed AVA allows roots to reach the 

clay-rich Ringold Formation. High clay 

content allows the soils to release water 

more slowly than sandier soils, putting 

less stress on grapevines during dry 

conditions. 

The petition states that the proposed 

White Bluffs AVA has a longer growing 

season than the surrounding regions. 

According to the petition, the longer 

growing season means that the proposed 

AVA is less prone to spring frosts that 

can damage the vines after bud break, 

and is also less likely to experience fall 

frosts that halt the ripening process and 

delay harvest. The growing season 

within the proposed AVA averages 

237.5 days, while the region to the north 

averages 200 days. The region to the east 

averages 169 days, and the region to the 

south averages 191 days. Climate data 

was not available for the region to the 

west of the proposed AVA. 

Notice of Proposed Rulemaking and 

Comments Received 

TTB published Notice No. 189 in the 

Federal Register on May 27, 2020 (85 

FR 31723), proposing to establish the 

White Bluffs 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. 189. 

In Notice No. 189, TTB solicited 

comments on the accuracy of the name, 

boundary, and other required 

information submitted in support of the 

petition. In addition, given the proposed 

White Bluff AVA’s location within the 

Columbia Valley AVA, TTB solicited 

comments on whether the evidence 

submitted in the petition regarding the 

distinguishing features of the proposed 

AVA sufficiently differentiates it from 

the established AVA. TTB also 

requested comments on whether the 

geographic features of the proposed 

AVA are so distinguishable from the 

established Columbia Valley AVA that 

the proposed AVA should no longer be 

part of the established AVA. The 

comment period closed on July 27, 

2020. 

In response to Notice No. 189, TTB 

received a total of two comments. Both 

comments were from local wine 

industry members who supported the 

proposed AVA. The first comment 

reiterated the petition’s claims of unique 

soil, geology, topography, and climate, 

which the commenter states makes the 

proposed AVA a ‘‘special area in 

Washington.’’ The second comment 

supported the proposed AVA due to its 

‘‘distinctive micro-climate, soil, and 

ultimately unique grape growing 

character.’’ Neither comment addressed 

the question of whether the proposed 

White Bluffs AVA was so distinct that 

it should be removed from the 

established Columbia Valley AVA. 

TTB Determination 

After careful review of the petition 

and the comments received in response 

to Notice No. 189, TTB finds that the 

evidence provided by the petitioner 

supports the establishment of the White 

Bluffs 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 


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32188 Federal Register / Vol. 86, No. 115 / Thursday, June 17, 2021 / Rules and Regulations 

regulations, TTB establishes the ‘‘White 

Bluffs’’ AVA in Franklin County, 

Washington, effective 30 days from the 

publication date of this document. 

TTB has also determined that the 

White Bluffs AVA will remain part of 

the established Columbia Valley AVA. 

As discussed in Notice No. 189, the 

White Bluffs AVA shares some broad 

characteristics with the established 

AVA. For example, the proposed AVA 

and the Columbia Valley AVA both 

have elevations that are generally below 

2,000 feet and geologies that contain 

Columbia River basalt. However, the 

proposed AVA consists of an elevated 

plateau, whereas most of the Columbia 

Valley AVA is described as a broad 

plain. Within the proposed AVA, the 

Ringold Formation forms a layer over 

the basalt bedrock that is generally 

thinner or not present elsewhere in the 

Columbia Valley. Finally, because iceage floods less frequently inundated the 

proposed AVA than the surrounding 

regions of the Columbia Valley AVA, 

the proposed White Bluffs AVA’s soils 

are generally shallower than the soils in 

most of the Columbia Valley AVA. 

Boundary Description 

See the narrative description of the 

boundary of the White Bluffs AVA in 

the regulatory text published at the end 

of this final rule. 

Maps 

The petitioners provided the required 

maps, and they are listed below in the 

regulatory text. You may also view the 

proposed White Bluffs Valley AVA 

boundary 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 White 

Bluffs AVA, its name, ‘‘White Bluffs,’’ 

will be recognized as a name of 

viticultural significance under 

§ 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 ‘‘White Bluffs’’ 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 the AVA name 

as an appellation of origin. 

The establishment of the White Bluffs 

AVA will not affect the existing 

Columbia Valley AVA, and any bottlers 

using ‘‘Columbia Valley’’ as an 

appellation of origin or in a brand name 

for wines made from grapes grown 

within the Columbia Valley will not be 

affected by the establishment of this 

new AVA. The establishment of the 

White Bluffs AVA will allow vintners to 

use ‘‘White Bluffs’’ and ‘‘Columbia 

Valley’’ as appellations of origin for 

wines made primarily from grapes 

grown within the White Bluffs AVA if 

the wines meet the eligibility 

requirements for these 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. 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: 

PART 9—AMERICAN VITICULTURAL 

AREAS 

■ 1. The authority citation for part 9 

continues to read as follows: 

Authority: 27 U.S.C. 205. 

Subpart C—Approved American 

Viticultural Areas 

■ 2. Subpart C is amended by adding 

§ 9.275 to read as follows: 

§ 9.275 White Bluffs. 

(a) Name. The name of the viticultural 

area described in this section is ‘‘White 

Bluffs’’. For purposes of part 4 of this 

chapter, ‘‘White Bluffs’’ is a term of 

viticultural significance. 

(b) Approved maps. The 10 United 

States Geological Survey (USGS) 

1:24,000 scale topographic maps used to 

determine the boundary of the White 

Bluffs viticultural area are titled: 

(1) Hanford, NE, Washington, 1986; 

(2) Mesa West, Washington, 1986; 

(3) Wooded Island, Washington, 1992; 

(4) Matthews Corner, Washington, 

1992; 

(5) Basin City, Washington, 1986; 

(6) Eltopia, Washington, 1992; 

(7) Eagle Lakes, Washington, 1986; 

(8) Savage Island, Washington, 1986; 

(9) Richland, Washington, 1992; and 

(10) Columbia Point, Washington, 

1992. 

(c) Boundary. The White Bluffs 

viticultural area is located in Franklin 

County in Washington. The boundary of 

the White Bluffs viticultural area is as 

described below: 

(1) The beginning point is on the 

Richland map at the intersection of 

Columbia River Road and an unnamed 

secondary highway known locally as 

Sagemoor Road. From the beginning 

point, proceed north along Columbia 

River Road, crossing onto the Wooded 

Island map, to the Potholes Canal; then 

(2) Proceed west along the Potholes 

Canal for 150 feet to its intersection 

with the shoreline of the Columbia 

River; then 

(3) Proceed north along the Columbia 

River shoreline, crossing onto the 

Savage Island map, to the intersection of 

the shoreline with the Wahluke Slope 

Habitat Management boundary on 

Ringold Flat; then 

(4) Proceed east, then generally 

northwesterly, along the Wahluke Slope 

Habitat Management boundary to its 

intersection with the 950-foot elevation 

contour along the western boundary of 

section 16, T13N/R29E; then 

(5) Proceed easterly, then generally 

northeasterly, along the 950-foot 

elevation contour, passing over the 

Hanford NE map and onto the Eagle 


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Federal Register / Vol. 86, No. 115 / Thursday, June 17, 2021 / Rules and Regulations 32189 

Lakes map, to the intersection of the 

elevation contour with an unimproved 

road in the southeast corner of section 

32, T14N/T29E; then 

(6) Proceed east along the unimproved 

road for 100 feet to its intersection with 

an unnamed light-duty improved road 

known locally as Albany Road; then 

(7) Proceed south along Albany Road, 

crossing onto the Basin City map, to the 

road’s intersection with an unnamed 

improved light-duty road known locally 

as Basin Hill Road along the southern 

boundary of section 21, T13N/R29E; 

then 

(8) Proceed south in a straight line for 

2 miles to an improved light-duty road 

known locally as W. Klamath Road; 

then 

(9) Proceed east along W. Klamath 

Road, crossing onto the Mesa West map, 

to the road’s intersection with another 

improved light-duty road known locally 

as Drummond Road; then 

(10) Proceed north along Drummond 

Road for 0.75 mile to its intersection 

with a railroad; then 

(11) Proceed easterly along the 

railroad to its intersection with an 

improved light-duty road known locally 

as Langford Road in the northeastern 

corner of section 4, T12N/R30E; then 

(12) Proceed south along Langford 

Road for 0.5 mile to its intersection with 

the 800-foot elevation contour; then 

(13) Proceed southwesterly along the 

800-foot elevation contour, crossing 

onto the Eltopia map, to the contour’s 

intersection with Eltopia West Road; 

then 

(14) Proceed east along Eltopia West 

Road to its intersection with the 700- 

foot elevation contour; then 

(15) Proceed southerly, then northerly 

along the 700-foot elevation contour, 

circling Jackass Mountain, to the 

contour’s intersection with Dogwood 

Road; then 

(16) Proceed west along Dogwood 

Road for 1.1 mile, crossing onto the 

Matthews Corner map, to the road’s 

intersection with the 750-foot elevation 

contour; then 

(17) Proceed southwesterly along the 

750-foot elevation contour to its 

intersection with Taylor Flats Road; 

then 

(18) Proceed south along Taylor Flats 

Road, crossing onto the Columbia Point 

map, to the road’s intersection with 

Birch Road; then 

(19) Proceed west along Birch Road 

for 1 mile to its intersection with Alder 

Road; then 

(20) Proceed south along Alder Road 

for 0.7 mile to its intersection with the 

550-foot elevation contour; then 

(21) Proceed westerly along the 550- 

foot elevation contour to its intersection 

with Sagemoor Road; then 

(22) Proceed westerly along Sagemoor 

Road for 0.7 mile, crossing onto the 

Richland map and returning to the 

beginning point. 

Signed: January 4, 2021. 

Mary G. Ryan, 

Administrator. 

Approved: January 1, 2021. 

Timothy E. Skud, 

Deputy Assistant Secretary (Tax, Trade, and 

Tariff Policy). 

[FR Doc. 2021–12769 Filed 6–16–21; 8:45 am] 

BILLING CODE 4810–31–P 

DEPARTMENT OF THE TREASURY 

Alcohol and Tobacco Tax and Trade 

Bureau 

27 CFR Part 9 

[Docket No. TTB–2020–0003; T.D. TTB–166; 

Ref: Notice No. 188] 

RIN 1513–AC70 

Establishment of the Palos Verdes 

Peninsula Viticultural Area 

AGENCY: Alcohol and Tobacco Tax and 

Trade Bureau, Treasury. 

ACTION: Final rule; Treasury decision. 

SUMMARY: The Alcohol and Tobacco Tax 

and Trade Bureau (TTB) establishes the 

approximately 15,900-acre ‘‘Palos 

Verdes Peninsula’’ viticultural area in 

the southwestern coastal region of Los 

Angeles County, California. The Palos 

Verdes Peninsula viticultural area is not 

located within, nor does it contain, any 

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 July 

19, 2021. 

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 the functions 

and duties in the administration and 

enforcement of these provisions to the 

TTB Administrator through Treasury 

Order 120–01, dated December 10, 2013 

(superseding Treasury Order 120–01, 

dated January 24, 2003). 

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 provides that any interested party 

may petition TTB to establish a grapegrowing 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; 


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