[Federal Register Volume 72, Number 27 (Friday, February 9, 2007)]
[Rules and Regulations]
[Pages 6165-6168]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 07-575]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 9

[T.D. TTB-58; Re: Notice No. 59]
RIN 1513-AB13


Establishment of the Outer Coastal Plain Viticultural Area 
(2003R-166P)

AGENCY: Alcohol and Tobacco Tax and Trade Bureau (TTB), Treasury.

ACTION: Final rule; Treasury decision.

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SUMMARY: This Treasury decision establishes the Outer Coastal Plain 
viticultural area in southeastern New Jersey. The viticultural area 
consists of approximately 2,255,400 acres and includes all of 
Cumberland, Cape May, Atlantic, and Ocean Counties and portions of 
Salem, Gloucester, Camden, Burlington, and Monmouth Counties. We 
designate viticultural areas to allow bottlers to better describe the 
origin of their wines and to allow consumers to better identify the 
wines they may purchase.

DATES: Effective Date: March 12, 2007.

FOR FURTHER INFORMATION CONTACT: Jennifer Berry, Alcohol and Tobacco 
Tax and Trade Bureau, Regulations and Rulings Division, P.O. Box 18152, 
Roanoke, VA 24014; telephone 540-344-9333.

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 
regulations promulgated under the FAA Act.
    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) contains 
the list of approved 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 distinguishable by geographical features, the boundaries 
of which have been recognized and defined 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 geographical 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 9.3(b) of the TTB regulations requires 
the petition to include--
    <bullet> Evidence that the proposed viticultural area is locally 
and/or nationally known by the name specified in the petition;
    <bullet> Historical or current evidence that supports setting the 
boundary of the proposed viticultural area as the petition specifies;
    <bullet> Evidence relating to the geographical features, such as 
climate, soils, elevation, and physical features, that distinguish the 
proposed viticultural area from surrounding areas;
    <bullet> A description of the specific boundary of the proposed 
viticultural area, based on features found on United States Geological 
Survey (USGS) maps; and
    <bullet> A copy of the appropriate USGS map(s) with the proposed 
viticultural area's boundary prominently marked.

Rulemaking Proceedings

Outer Coastal Plain Petition

    James Quarella of Bellview Winery, Landisville, New Jersey, 
petitioned TTB to establish the ``Outer Coastal Plain'' as an American 
viticultural area in southeastern New Jersey. The proposed viticultural 
area covers approximately 2,255,400 acres and includes all of 
Cumberland, Cape May, Atlantic, and Ocean Counties and portions of 
Salem, Gloucester, Camden, Burlington, and Monmouth Counties. According 
to the petitioner, the area currently includes thirteen wineries, 
several vineyards, and approximately 750 acres planted to vines. We 
summarize below the evidence submitted in support of the petition.
Name Evidence
    The Outer Coastal Plain is one of five defined physiographic 
regions of New Jersey. The other regions are the Inner Coastal Plain, 
the Newark Basin Piedmont, the Highlands, and the Appalachian Valley 
and Ridge.
    The Outer Coastal Plain includes most of the State's Atlantic 
coastline and the area known as the ``Pinelands'' or ``Pine Barrens.'' 
The petitioner states that most geology reference sources and such

[[Page 6166]]

government entities as the New Jersey Department of Environmental 
Protection, USGS, and the United States Department of Agriculture 
(USDA), call the region the ``Outer Coastal Plain.''
    As evidence that the proposed viticultural area is known locally 
and nationally by this name, the petitioner submitted several documents 
that identify the area as the ``Outer Coastal Plain.'' These documents 
included--
    <bullet> A map from a National Park Service Web site showing 
landform regions in New Jersey, at http://www.cr.nps.gov/history/online_books/nj2/chap1.htm;
    <bullet> A map entitled ``Geographic Boundaries of the Outer 
Coastal Plain (OCP) of New Jersey,'' issued by the New Jersey 
Department of Environmental Protection; and
    <bullet> A list of native trees and shrubs for the Outer Coastal 
Plain on the Web site of the New Jersey Agricultural Experiment 
Station/Cook College, Rutgers, The State University of New Jersey, at 
http://www.rce.rutgers.edu/njriparianforestbuffers/nativeOUTER.htm.
    Both the Outer Coastal Plain and the Inner Coastal Plain comprise 
the extensive, seaward-sloping Atlantic Coastal Plain. The Atlantic 
Coastal Plain stretches about 2,200 miles along the coast of the 
Eastern United States, from Massachusetts to Florida.
Boundary Evidence
    The Outer Coastal Plain encompasses the southeastern part of the 
State of New Jersey. The proposed viticultural area is roughly 
triangular in shape and comprises the most easterly and southerly 
portions of New Jersey, including most of the State's Atlantic 
coastline and the area known as the ``Pinelands'' or ``Pine Barrens.'' 
According to the petitioner, the geographical and geological features 
that define the boundaries of the proposed viticultural area clearly 
distinguish it from surrounding areas. The proposed viticultural area's 
proximity to the Atlantic Ocean and Delaware Bay greatly influences its 
climate and its geographical and geological features, such as soils and 
underlying sediments. These features are described in greater detail in 
the following section.
    The Atlantic Ocean coastline, including its barrier islands, forms 
the proposed viticultural area's eastern boundary, and Delaware Bay 
forms its southern boundary. The diagonal western boundary is 
immediately east of a belt of low hills, called cuestas. These cuestas, 
which extend in a northeasterly direction from the Delaware River 
lowlands in the southwest to the Atlantic Highlands overlooking Raritan 
Bay in the northeast, separate the proposed viticultural area from the 
Inner Coastal Plain. The diagonal western boundary meets the eastern 
boundary within the city of Long Branch, New Jersey, on the Atlantic 
coastline.
    As historical evidence for these proposed boundaries, the 
petitioner cited the area's long viticultural history. According to 
evidence that the petitioner submitted, viticulture flourished in the 
area as early as the mid-19th century. Egg Harbor City, New Jersey, was 
the center of a thriving wine industry with hundreds of acres of 
grapes. In 1864, Louis Renault established Renault Winery in Egg Harbor 
City, where he found the soils and climate to be similar to those of 
his native Rheims, France. Today, Renault Winery is one of the oldest, 
continuous winery operations in the United States. Around the same 
time, Dr. Thomas Welch founded the U.S. grape juice industry in 
Vineland, New Jersey, with a product that became known as Welch's Grape 
Juice. Although Prohibition devastated the area's wineries, the wine 
industry has made a strong comeback in recent years, due largely to the 
New Jersey Farm Winery Act of 1981. The number of wineries in the State 
jumped from 9 in 1981 to 27 today, 13 of which are in the proposed 
viticultural area.
Distinguishing Features
    Soils and Geology. The petitioner asserts that the soils and 
geology of the proposed viticultural area clearly distinguish it from 
surrounding areas. Despite its large landmass, the Outer Coastal Plain 
has remarkably uniform, well drained sandy soils that derived from 
unconsolidated sediments. The relatively low fertility and low pH of 
these soils, the petitioner notes, are favorable for grape growing. In 
contrast to the soils of the Outer Coastal Plain, the fine, silty soils 
of the Inner Coastal Plain to the west have both higher fertility and 
higher pH and the soils to the north are dense and rocky, and are 
derived from bedrock.
    As evidence of the proposed viticultural area's distinctive 
geology, the petitioner submitted the ``Geologic Map of New Jersey.'' 
Published by the State's Department of Environmental Protection, this 
map clearly shows that most of the Outer Coastal Plain is underlain by 
unconsolidated deposits of sand, silt, and clay of the Tertiary period 
and that a small coastal fringe consists of beach and estuarine 
deposits of the Holocene epoch. The parent material of soils in other 
parts of the State formed in later geologic periods. The Inner Coastal 
Plain, in contrast, is underlain by sand, silt, and clay of the 
Cretaceous period, and the northern regions of the State are underlain 
by sedimentary, igneous, and metamorphic rocks of still later geologic 
periods.
    According to the petitioner, a unique feature of the proposed 
viticultural area is its significant aquifers, particularly the 
Cohansey aquifer, the largest freshwater aquifer in the mid-Atlantic 
region. The petitioner states that this aquifer is so important to the 
region's drainage and water supply that it was one reason the Pinelands 
National Reserve was created as a federally protected area. The 
Cohansey aquifer is part of the 1.93-million-acre Kirkwood-Cohansey 
aquifer system, the borders of which nearly correspond to those of the 
proposed viticultural area. The Cohansey and other aquifers, the 
petitioner notes, provide an abundant source of water for the proposed 
viticultural area's vineyards. In contrast to the Outer Coastal Plain, 
the adjacent Inner Coastal Plain has smaller, confined aquifers, mostly 
in the Potomac-Raritan-Magothy aquifer system.
    Elevation. The petitioner states that the proposed viticultural 
area's elevation is another feature that distinguishes it from adjacent 
areas. According to an elevation map issued by the New Jersey 
Geological Survey, almost the entire area has elevations of less than 
280 feet above sea level, and most of the area has elevations 
significantly below that height. The petitioner notes that the proposed 
viticultural area's low elevation and proximity to the Atlantic Ocean 
are moderating influences on its climate, as described below. 
Elevations in the other regions of New Jersey are higher. Elevations in 
the northwestern part of the State, for example, range from 1,300 to 
1,680 feet.
    Climate. According to the petitioner, the climate of the Outer 
Coastal Plain is strongly influenced by the Atlantic Ocean to the east 
and Delaware Bay to the south. Because of this maritime influence on 
its climate, the proposed viticultural area is generally warmer, has a 
longer growing season, and has more moderate temperatures than areas to 
the west and north. As evidence of the maritime influence, the 
petitioner submitted a USDA plant hardiness zone map of New Jersey and 
noted that the proposed viticultural area is in zones 6B, 7A, or 7B, 
whereas areas to the north and west are in cooler zones and have 
shorter growing seasons. The petitioner also submitted a climate 
overview published on the Web site of the New Jersey State 
Climatologist at

[[Page 6167]]

http://climate.Rutgers.edu/stateclim_v1/njclimoverview.html. The 
overview shows that the proposed viticultural area has between 190 and 
217 freeze-free days per year. In contrast, the Highlands region to the 
north averages 163 freeze-free days and the central Piedmont region 
averages 179 freeze-free days. The petitioner notes that because of 
these climatic differences, more temperature-sensitive grape varieties 
may be grown in vineyards within the proposed viticultural area than in 
vineyards in other adjacent regions.

Notice of Proposed Rulemaking

    On July 3, 2006, TTB published a notice of proposed rulemaking 
regarding the establishment of the Outer Coastal Plain viticultural 
area in the Federal Register (71 FR 37870) as Notice No. 59. In that 
notice, TTB invited comments by September 1, 2006, from all interested 
persons. We expressed particular interest in receiving comments on 
whether the proposed area name would result in a conflict with 
currently used brand names and whether the name ``New Jersey Outer 
Coastal Plain'' would more appropriately identify the proposed 
viticultural area. We received no comments on these or any other issues 
in response to that notice.

TTB Finding

    After careful review of the petition, TTB finds that the evidence 
submitted supports the establishment of the proposed viticultural area. 
Therefore, under the authority of the Federal Alcohol Administration 
Act and part 4 of our regulations, we establish the ``Outer Coastal 
Plain'' viticultural area in the State of New Jersey effective 30 days 
from the publication date of this document.

Boundary Description

    See the narrative boundary description of the viticultural area in 
the regulatory text published at the end of this final rule.

Maps

    The petitioner provided the required maps, and we list 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 and 
its inclusion in part 9 of the TTB regulations, its name, ``Outer 
Coastal Plain,'' is recognized under 27 CFR 4.39(i)(3) as a name of 
viticultural significance. The text of the new regulation clarifies 
this point. Consequently, wine bottlers using ``Outer Coastal Plain `` 
in a brand name, including a trademark, or in another label reference 
as to the origin of the wine, must ensure that the product is eligible 
to use the viticultural area's name 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 
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). Different rules apply if 
a wine has a brand name containing a viticultural area name or other 
viticulturally significant term 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

    We certify 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 is 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, 58 FR 51735. Therefore, it requires no 
regulatory assessment.

Drafting Information

    Jennifer Berry of the Regulations and Rulings Division drafted this 
document.

List of Subjects in 27 CFR Part 9

    Wine.

Regulatory Amendment

0
For the reasons discussed in the preamble, we amend 27 CFR, chapter 1, 
part 9, 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.  9.207 to read as follows:


Sec.  9.207  Outer Coastal Plain.

    (a) Name. The name of the viticultural area described in this 
section is ``Outer Coastal Plain''. For purposes of part 4 of this 
chapter, ``Outer Coastal Plain'' is a term of viticultural 
significance.
    (b) Approved maps. The appropriate maps for determining the 
boundary of the Outer Coastal Plain viticultural area are seven United 
States Geological Survey topographic maps. They are titled--
    (1) Wilmington, Delaware-New Jersey-Pennsylvania-Maryland, 1984, 
1:100,000 scale;
    (2) Hammonton, New Jersey, 1984, 1:100,000 scale;
    (3) Trenton, New Jersey-Pennsylvania-New York, 1986, 1:100,000 
scale;
    (4) Long Branch, New Jersey, 1954, photorevised 1981, 1:24,000 
scale;
    (5) Atlantic City, New Jersey, 1984, 1:100,000 scale;
    (6) Cape May, New Jersey, 1981, 1:100,000 scale; and
    (7) Dover, Delaware-New Jersey-Maryland, 1984, 1:100,000 scale.
    (c) Boundary. The Outer Coastal Plain viticultural area includes 
all of Cumberland, Cape May, Atlantic, and Ocean Counties and portions 
of Salem, Gloucester, Camden, Burlington, and Monmouth Counties in the 
State of New Jersey. The boundary of the Outer Coastal Plain 
viticultural area is as described below.
    (1) The beginning point is on the Wilmington map at the confluence 
of Alloway Creek with the Delaware River (within Mad Horse Creek State 
Wildlife Management Area) in Salem County;
    (2) From the beginning point, proceed northeasterly in a straight 
line to the village of Hagerville; then
    (3) Continue north on an unnamed road locally known as County Road 
(CR) 658 to its intersection with State Route (SR) 49; then
    (4) Proceed northwesterly on SR 49 to its intersection with SR 45 
in the center of the town of Salem; then
    (5) Proceed northeasterly on SR 45 to its intersection with SR 540 
at the village of Pointers; then
    (6) Proceed north on SR 540 into the village of Slapes Corner; then
    (7) Proceed northeasterly on an unnamed road locally known as CR 
646 to its intersection with the New Jersey Turnpike near the village 
of Auburn; then
    (8) Proceed northeasterly on the New Jersey Turnpike for 
approximately 18

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miles to its intersection with SR 47; then
    (9) Proceed south on SR 47 for approximately 0.5 mile to its 
intersection with SR 534 at the village of Gardenville Center; then
    (10) Proceed southeasterly through Gardenville Center on SR 534 to 
its intersection with SR 544; then
    (11) Proceed northeasterly on SR 544 to its intersection with SR 73 
on the Hammonton map; then
    (12) Proceed north-northwesterly on SR 73 to its intersection with 
SR 70 in Cropwell; then
    (13) Proceed east on SR 70 to its intersection with U.S. 206 in Red 
Lion; then
    (14) Proceed north on U.S. 206, onto the Trenton map, to the 
intersection of U.S. 206 and an unnamed road locally known as CR 537, 
in the village of Chambers Corner; then
    (15) Proceed northeasterly on CR 537, through the village of 
Jobstown; then
    (16) Continue northeasterly on CR 537, through the villages of 
Smithburg and Freehold, to its intersection with SR 18, east-northeast 
of Freehold; then
    (17) Proceed easterly on SR 18 to its intersection with the Garden 
State Parkway; then
    (18) Proceed north on the Garden State Parkway to its intersection 
with SR 36 and proceed east along SR 36 onto the Long Branch map; then
    (19) Using the Long Branch map, continue east on SR 36 to where it 
intersects with Joline Avenue; then
    (20) Proceed northeasterly on Joline Avenue to the Atlantic Ocean 
shoreline; then
    (21) Follow the Atlantic Ocean shoreline south, encompassing all 
coastal islands, onto the Trenton, Hammonton, Atlantic City, and Cape 
May maps, to the city of Cape May; then
    (22) Proceed west, then north, along the eastern bank of the 
Delaware River, onto the Atlantic City, Dover, and Wilmington maps to 
the beginning point.

    Dated: December 4, 2006.
John J. Manfreda,
Administrator.

    Approved: January 29, 2007.
Timothy E. Skud,
Deputy Assistant Secretary, (Tax, Trade, and Tariff Policy).
[FR Doc. 07-575 Filed 2-8-07; 8:45 am]
BILLING CODE 4810-31-P