[Federal Register Volume 86, Number 162 (Wednesday, August 25, 2021)]
[Rules and Regulations]
[Pages 47380-47382]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2021-18209]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 9

[Docket No. TTB-2020-0010; T.D. TTB-173; Ref: Notice No. 195]
RIN 1513-AC71


Establishment of the Virginia Peninsula 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 673,059-acre ``Virginia Peninsula'' viticultural area (AVA) in 
southeastern Virginia. The Virginia Peninsula viticultural area 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 September 24, 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, 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> 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.

Virginia Peninsula AVA Petition

    TTB received a petition from the Williamsburg Winery proposing the 
establishment of the ``Virginia Peninsula'' AVA in southeastern 
Virginia. The proposed AVA covers 673,059 acres and includes the 
counties of James City, York, New Kent, and Charles City, as well as 
the independent cities of Poquoson, Hampton, Newport News, and 
Williamsburg. The proposed Virginia Peninsula is not located within any 
other AVA. At the time the petition was submitted, the proposed AVA 
contained five commercial vineyards covering a total of approximately 
112 acres. The petition states that vineyard owners plan to plant an 
additional 61 acres of vineyards in the next few years. There are also 
five wineries within the proposed AVA. The petition identifies the 
distinguishing features of the proposed Virginia Peninsula AVA as its 
geology and climate.
    The proposed Virginia Peninsula AVA, along with the regions to the 
north and south, is located on the Atlantic Coastal Plain, a region of 
low topographic relief with elevations ranging from sea level to 
approximately 250 feet. The York River, along with the Pamunkey River 
that feeds it, forms the northern boundary of the proposed AVA, and the 
James River forms the southern boundary. The Atlantic Coastal Plain is 
underlain by Cenozoic-era sand, mud, and gravel that were deposited 
during periods of higher sea levels. According to the petition, the 
geological formations of the proposed AVA are ideal for viticulture, as 
the bedrock tends to be fractured, allowing for greater root depth and 
greater rainfall

[[Page 47381]]

permeability. To the east of the proposed AVA is the Atlantic Ocean. To 
the west of the proposed AVA are the Hopewell fault and the Atlantic 
Seaboard Fall Line, which mark the beginning of the Piedmont and Blue 
Ridge regions of Virginia. The geology of these regions to the west 
consists of igneous and metamorphic rock, including granite and gneiss. 
The bedrock is less porous and less fractured than the bedrock of the 
proposed AVA. As a result, neither grapevine roots nor rain can 
penetrate as deeply as within the more fractured bedrock of the 
proposed AVA.
    The proposed Virginia Peninsula AVA is characterized by a humid 
subtropical climate, with long, humid summers and moderate to mild 
winters. Average growing season temperatures within the proposed AVA 
range from an average low of 65 degrees Fahrenheit (F) to an average 
high of 84 degrees F. The average maximum high temperature is 100 
degrees F, while the average minimum low temperature is 35 degrees F. 
The proposed AVA averages 57 days with temperatures over 90 degrees F 
and 2.6 days with temperatures over 100 degrees F. According to the 
petition, temperatures above 90 degrees F reduce photosynthesis in 
grapevines. Because photosynthesis is the process which produces sugar, 
reduced photosynthesis rates would require fruit to hang longer to 
achieve optimal sugar levels. The longer hang time increases the risk 
of disease or animals destroying a crop before it can be harvested.
    The regions to the north and south of the proposed AVA have lower 
average growing season high temperatures, lower average growing season 
low temperatures, and lower average maximum high temperatures than the 
proposed AVA. Average minimum low growing season temperatures to the 
north are lower than within the proposed Virginia Peninsula AVA, while 
average minimum low growing season temperatures to the south are the 
same as within the proposed AVA. The regions to the north and south 
both have significantly fewer days with temperatures over 90 degrees F 
than the proposed AVA, and neither region has any days with 
temperatures over 100 degrees. The petition did not include temperature 
information for the region to the west of the proposed AVA.
    According to the petition, the proposed Virginia Peninsula receives 
an average of 40.4 inches of rain a year, with an average of 7 inches 
occurring during the harvest season period of August 21 to November 8. 
During the harvest period, the proposed AVA has an average of 21 days 
with rain, and an average of 4.8 days with over \1/2\ inch of rain. The 
average annual and growing season rainfall amounts of the proposed AVA 
are higher than the amounts for the region to the north and less than 
the amounts for the region to the south. The proposed AVA also has more 
average harvest days with rain and more average harvest days with over 
\1/2\ inch of rain than the region to the north, and fewer average 
harvest days with rain and fewer average harvest days with over \1/2\ 
inch of rain than the region to the south. The petition did not include 
rainfall information from the region to the west of the proposed AVA. 
According to the petition, frequent rainfall during the harvest season, 
particularly daily amounts over \1/2\ inch, can cause ripening fruits 
to split and can dilute flavors. The high growing season temperatures 
combined with frequent rainfall during the typical harvest season mean 
that vineyard managers within the proposed Virginia Peninsula AVA 
frequently face the decision whether to pick grapes before they've 
reached peak ripeness, or to let the fruit continue to ripen but 
potentially spoil.

Notice of Proposed Rulemaking and Comments Received

    TTB published Notice No. 195 in the Federal Register on October 1, 
2020 (85 FR 61895), proposing to establish the Virginia Peninsula 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. 
195. In Notice No. 195, TTB solicited comments on the accuracy of the 
name, boundary, and other required information submitted in support of 
the petition. The comment period closed on November 30, 2020. TTB did 
not receive any comments in response to Notice No. 195.

TTB Determination

    After careful review of the petition, TTB finds that the evidence 
provided by the petitioner supports the establishment of the Virginia 
Peninsula 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 ``Virginia Peninsula'' AVA in 
southeastern Virginia, effective 30 days from the publication date of 
this document.

Boundary Description

    See the narrative description of the boundary of the Virginia 
Peninsula 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 Virginia Peninsula 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 Virginia Peninsula AVA, its name, 
``Virginia Peninsula,'' 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 ``Virginia Peninsula'' 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 Virginia Peninsula AVA will not affect any 
existing AVA. The establishment of the Virginia Peninsula AVA will 
allow vintners to use ``Virginia Peninsula'' as an appellation of 
origin for wines made primarily from grapes grown within the Virginia 
Peninsula AVA if the wines meet the eligibility requirements for the 
appellation.

[[Page 47382]]

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

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.  9.279 to subpart C to read as follows:


Sec.  9.279  Virginia Peninsula AVA.

    (a) Name. The name of the viticultural area described in this 
section is ``Virginia Peninsula''. For purposes of part 4 of this 
chapter, ``Virginia Peninsula'' is a term of viticultural significance.
    (b) Approved maps. The 5 United States Geological Survey (USGS) 
1:100,000 scale topographic maps used to determine the boundary of the 
Virginia Peninsula viticultural area are titled:
    (1) Norfolk, Virginia-North Carolina; 1985;
    (2) Petersburg, Virginia, 1984;
    (3) Richmond, Virginia, 1984;
    (4) Tappahannock, Virginia-Maryland; 1984; and
    (5) Williamsburg, Virginia, 1984.
    (c) Boundary. The Virginia Peninsula viticultural area is located 
in James City, York, New Kent, and Charles City Counties, Virginia, as 
well as the independent Virginia cities of Poquoson, Hampton, Newport 
News, and Williamsburg. The boundary of the Virginia Peninsula 
viticultural area is as described below:
    (1) The beginning point is on the Norfolk, Virginia-North Carolina 
map at the intersection of the Newport News City boundary and the James 
River Bridge. From the beginning point, proceed northwesterly along the 
Newport News City boundary to the point in the James River where the 
city boundary becomes concurrent with the James City County boundary; 
then
    (2) Proceed northwesterly along the James City County boundary to 
the point where it becomes concurrent with the Charles City County 
boundary; then
    (3) Proceed along the Charles City County boundary, crossing onto 
the Petersburg, Virginia, map and continuing along the Charles City 
County boundary to the point where it intersects the Henrico County 
boundary at Turkey Island Creek; then
    (4) Proceed north-northeasterly along the concurrent Henrico 
County-Charles City County boundary to its intersection with the 
Chickahominy River, which is concurrent with the New Kent County 
boundary; then
    (5) Proceed northwesterly along the Chickahominy River-New Kent 
County boundary, crossing onto the Richmond, Virginia, map to its 
intersection with the Hanover County boundary; then
    (6) Proceed northeasterly along the Hanover County-New Kent County 
boundary to its intersection with the King William County boundary at 
the Pamunkey River; then
    (7) Proceed southeasterly along the King William County-New Kent 
County boundary, crossing onto the Tappahannock, Virginia-Maryland map, 
to the intersection of the concurrent county boundary with the York 
River; then
    (8) Proceed southeasterly along the York River, crossing onto the 
Williamsburg, Virginia map, to the intersection of the river with the 
Chesapeake Bay north of Tue Point; then
    (9) Proceed southeast in a straight line to the shoreline of Marsh 
Point; then
    (10) Proceed southeasterly, then southwesterly along the shoreline 
to the Hampton Roads Bridge-Tunnel; then
    (11) Proceed southwest in a straight line, crossing onto the 
Norfolk, Virginia-North Carolina map, to the northeastern terminus of 
the Hampton City boundary; then
    (12) Proceed southwesterly along the Hampton City boundary to the 
point where it intersects with the Newport News City boundary; then
    (13) Proceed southwesterly, then northwesterly along the Newport 
News City boundary, returning to the beginning point.

    Signed: June 9, 2021.
Mary G. Ryan,
Administrator.

    Approved: June 11, 2021.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and Tariff Policy).
[FR Doc. 2021-18209 Filed 8-24-21; 8:45 am]
BILLING CODE 4810-31-P