Establishment of the Tualatin Hills and Laurelwood District Viticultural Areas

Published date03 June 2020
Citation85 FR 34095
Record Number2020-10919
SectionRules and Regulations
CourtAlcohol And Tobacco Tax And Trade Bureau
Federal Register, Volume 85 Issue 107 (Wednesday, June 3, 2020)
[Federal Register Volume 85, Number 107 (Wednesday, June 3, 2020)]
                [Rules and Regulations]
                [Pages 34095-34100]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2020-10919]
                [[Page 34095]]
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                DEPARTMENT OF THE TREASURY
                Alcohol and Tobacco Tax and Trade Bureau
                27 CFR Part 9
                [Docket No. TTB-2019-0003; T.D. TTB-160; Ref: Notice No. 181]
                RIN 1513-AC52
                Establishment of the Tualatin Hills and Laurelwood District
                Viticultural Areas
                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 144,000-acre ``Tualatin Hills'' viticultural area in
                portions of Multnomah and Washington Counties, Oregon, and the
                approximately 33,600-acre ``Laurelwood District'' viticultural area in
                portions of Washington and Yamhill Counties, Oregon. TTB is
                establishing both viticultural areas in the same document because a
                small portion of their boundaries is contiguous. The two viticultural
                areas lie entirely within the established Willamette Valley
                viticultural area. The Laurelwood District viticultural area is also
                entirely within the established Chehalem Mountains 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 6, 2020.
                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 various
                authorities through Treasury Order 120-01, dated December 10, 2013
                (superseding Treasury Order 120-01, dated January 24, 2003), to the TTB
                Administrator to perform the functions and duties in the administration
                and enforcement of these laws.
                 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 grape-growing 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;
                 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 boundary;
                 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;
                 An explanation showing the proposed AVA is sufficiently
                distinct from an existing AVA so as to warrant separate recognition, if
                the proposed AVA is to be established within, or overlapping, an
                existing AVA; and
                 A detailed narrative description of the proposed AVA
                boundary based on USGS map markings.
                Tualatin Hills Petition
                 TTB received a petition from Rudolf Marchesi, president of
                Montinore Estate, Alfredo Apolloni, owner and winemaker of Apolloni
                Vineyards, and Mike Kuenz, general manager of David Hill Vineyard and
                Winery, on behalf of themselves and other local grape growers and
                vintners, proposing the establishment of the ``Tualatin Hills'' AVA in
                portions of Multnomah and Washington Counties.
                 The proposed Tualatin Hills AVA is located in Oregon, lies entirely
                within the established Willamette Valley AVA (27 CFR 9.90), and covers
                approximately 144,000 acres. There are 33 commercially-producing
                vineyards covering a total of approximately 860.5 acres, as well as 21
                wineries, within the proposed AVA. According to the petition, the
                distinguishing features of the proposed Tualatin Hills AVA are its
                soils, elevation, and climate.
                 The soils of the proposed AVA are described as primarily Laurelwood
                soils and similar associated types, such as Kinton and Cornelius soils,
                with almost no exposed volcanic or marine sedimentary soil types. The
                Laurelwood soils are derived from weathered basalt and loess and are
                fine, silty soils with no rocks. The soils generally have low levels of
                organic material and a high clay content, making them moderately
                fertile without promoting overly vigorous vine growth. The soils reach
                depths of up to 100 feet which, when combined with the high clay
                content, reduces the need for irrigation in most vineyards within the
                proposed AVA.
                 The petition describes Laurelwood soils as unique to the
                northwestern portion of the established Willamette Valley AVA, which
                includes the proposed Tualatin Hills AVA. According to the petition,
                the only place outside the proposed AVA where Laurelwood soils occur is
                on the northeast-facing slopes of the
                [[Page 34096]]
                established Chehalem Mountains AVA, within the proposed Laurelwood
                District AVA. However, the petition notes that the Laurelwood soils
                within the Chehalem Mountains AVA are frequently mixed with volcanic,
                sedimentary, and alluvial soils. To the north of the proposed Tualatin
                Hills AVA, the soils formed primarily from volcanic material from
                eruptions near the Oregon-Washington-Idaho border between 6 and 17
                million years ago and contain very little loess and no Laurelwood
                series soils. West of the proposed AVA, the soils are primarily Coastal
                sediment soils originating from volcanic soils and marine uplifted
                soils that formed 50 million years ago. To the south of the proposed
                AVA within the established Chehalem Mountains AVA, the soils are also
                formed primarily from marine sediments, although the soils are
                sometimes striated with older decomposing basalt and volcanic
                materials. To the east of the proposed AVA, the soils are primarily
                formed from Columbia River basalt and sedimentary materials.
                 The proposed Tualatin Hills AVA is located in the upland hills of
                the Tualatin River watershed and encompasses elevations between 200 and
                1,000 feet, which is generally considered the upper limit for growing
                commercial wine grapes in this region of Oregon. Furthermore, the
                petition states that elevations below 200 feet were excluded because
                the lower elevations are relatively flat and more susceptible to frost.
                The proposed AVA is surrounded to the north and west by the higher
                elevations of the Coastal Range, which typically exceed 1,000 feet. To
                the east of the proposed AVA is the broad, flat plain of the Tualatin
                River Valley, where elevations are generally below 200 feet. The
                petition notes that there is a small region between the northeast
                corner and the southeast corner of the proposed AVA that has similar
                elevations to the proposed AVA. However, this region was not included
                in the proposed AVA because it is within the urban development zone of
                metro Portland and is currently used for commercial and residential
                buildings and public parks; there is no commercial viticulture in this
                area. To the south and southeast of the proposed AVA are the Chehalem
                Mountains, which includes elevations of over 1,000 feet and, according
                to the petition, are considered to be a separate, distinct landform
                from the uplands within the proposed Tualatin Hills AVA.
                 The climate of the proposed Tualatin Hills AVA is characterized by
                average annual rainfall amounts of 43.67 inches, which is lower than
                annual rainfall amounts in the regions to the west and north, and
                higher than amounts in the regions to the east and south. The moderate
                rainfall amounts discourage the growth of mold and mildew in vineyards
                within the AVA. Differences between daytime high temperatures and
                nighttime low temperatures, referred to as diurnal temperature
                variations, are greater in the proposed AVA than in the all the
                surrounding regions except the region to the south. Greater diurnal
                variations slow the development of sugars and reduce acid loss in
                grapes, allowing grape varietals that require a long growing season to
                fully develop their flavor and aroma compounds.
                Laurelwood District Petition
                 TTB received a petition from Luisa Ponzi, president of Ponzi
                Vineyards, Maria Ponzi, winemaker of Ponzi Vineyards, and Kevin
                Johnson, winemaker of Dion Vineyards, on behalf of themselves and other
                local grape growers and vintners, proposing the establishment of the
                ``Laurelwood'' AVA. However, at the request of TTB, the petitioners
                agreed to add the word ``District'' to the proposed name, in order to
                avoid a potential impact on current label holders who are using
                ``Laurelwood'' as a brand name or fanciful name on their wine labels.
                The proposed Laurelwood District AVA is located west of the city of
                Portland and lies entirely within the established Willamette Valley AVA
                and the established Chehalem Mountains AVA. The proposed Laurelwood
                District AVA covers approximately 33,600 acres and contains 25 wineries
                and approximately 70 commercially-producing vineyards that cover a
                total of approximately 975 acres.
                 According to the petition, the distinguishing feature of the
                proposed Laurelwood District AVA is the predominance of the Laurelwood
                soil series. Although Laurelwood soil exists outside the proposed
                Laurelwood District AVA, specifically within the proposed Tualatin
                Hills AVA to the northwest, the petition states that there are
                differences between the Laurelwood soil of the proposed Laurelwood
                District AVA and the Laurelwood soil of the proposed Tualatin Hills
                AVA. For instance, the Laurelwood soil of the proposed Laurelwood
                District AVA consists of loess combined with basalt that is older than
                the basalt found in the Laurelwood soil of the proposed Tualatin Hills
                AVA. However, the petition states that the primary distinction between
                the soils of the two proposed AVAs is the contiguity of Laurelwood soil
                within the proposed Laurelwood District AVA. Within the proposed
                Tualatin Hills AVA, large concentrations of Laurelwood soil are
                dispersed throughout, separated by regions without Laurelwood soils. By
                contrast, within the proposed Laurelwood District AVA, Laurelwood soil
                covers the entirety of the proposed AVA. Additionally, within the
                proposed Tualatin Hills AVA, Laurelwood soil is often mixed with
                related soil series, particularly Kinton and Cornelius soils. Within
                the proposed Laurelwood District AVA, Kinton and Cornelius soils exist
                only in small, isolated pockets along the eastern edge.
                Notice of Proposed Rulemaking and Comments Received
                 TTB published Notice No. 181 in the Federal Register on June 19,
                2019 (84 FR 28442), proposing to establish the Tualatin Hills and
                Laurelwood District AVAs. In the notice, TTB summarized the evidence
                from the two petitions regarding the name, boundary, and distinguishing
                features for the proposed AVAs. The notice also compared the
                distinguishing features of the proposed AVAs to the surrounding areas.
                For a detailed description of the evidence relating to the name,
                boundary, and distinguishing features of the proposed AVAs, and for a
                detailed comparison of the distinguishing features of the proposed AVAs
                to the surrounding areas, see Notice No. 181.
                 In Notice No. 181, 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 Tualatin Hills and
                Laurelwood District AVA's location within the Willamette Valley AVA,
                TTB solicited comments on whether the evidence submitted in the
                petition regarding the distinguishing features of the two proposed AVAs
                sufficiently differentiates them from the Willamette Valley AVA. TTB
                also requested comments on whether the geographic features of the
                proposed AVAs are so distinguishable from the Willamette Valley AVA
                that the proposed AVAs should no longer be part of the established AVA.
                TTB solicited comments on whether distinguishing features of the
                proposed Laurelwood District sufficiently differentiate it from the
                established Chehalem Mountains AVA, and if the features of the proposed
                AVA are so distinctive that it should no longer be part of the
                established Chehalem Mountains AVA. Finally, TTB also solicited
                comments on whether the distinguishing features of the proposed
                Laurelwood District AVA sufficiently differentiate it from the proposed
                [[Page 34097]]
                neighboring Tualatin Hills AVA, and on whether the distinguishing
                features of the proposed Tualatin Hills AVA sufficiently differentiate
                it from the proposed Laurelwood District AVA. The comment period closed
                August 19, 2019.
                Comments Received on the Proposed Tualatin Hills and Laurelwood
                District AVAs
                 In response to Notice No. 181, TTB received a total of nine
                comments. Of the nine comments, only one comment (comment 3)
                specifically mentioned the proposed Tualatin Hills AVA. That comment,
                submitted by a local wine industry member with vineyards in both of the
                proposed AVAs, supported the establishment of the proposed Tualatin
                Hills AVA as a way to inform consumers of the region's characteristics,
                which he believes are unique from the surrounding regions, including
                the proposed Laurelwood District AVA. None of the comments opposed the
                establishment of the proposed Tualatin Hills AVA or its inclusion
                within the established Willamette Valley AVA.
                 All nine of the comments TTB received mentioned the proposed
                Laurelwood District AVA. Three of the comments, comments 1, 4, and 5,
                did not oppose establishing this AVA, but expressed opposition to the
                proposed Laurelwood District AVA name. The opposing comments generally
                state the belief that naming an AVA after a soil type would be
                misleading, as it would imply that the soil is found only within that
                AVA, when in fact there are vineyards outside the proposed AVA that are
                planted entirely on Laurelwood soil. As a result, consumers would be
                confused by wines made outside the proposed Laurelwood District AVA
                that claim that the grapes were grown in Laurelwood soils. Comment 4
                stated that allowing an AVA to be named after a soil type would ``set a
                dangerous precedent'' and could lead to the creation of other AVAs that
                treat the name of a soil type as if it were ``solely proprietary.''
                Comment 4 was the only comment to suggest alternative names for the
                proposed AVA, including ``North Slope,'' ``Laurel,'' ``Mountainside,''
                ``Fern Hill, ``Spring Hill,'' ``Midway,'' and ``Mountain Home.''
                Comment 4 appeared to favor the name ``North Slope,'' noting that 91
                percent of the wine wholesalers the commenter surveyed in his work as a
                director of wine sales for a local winery preferred that name to
                ``Laurelwood District.'' Comment 4 also claimed that the website of
                Ponzi Vineyards, one of the petitioners for the proposed Laurelwood
                District AVA, uses the phrase ``North Slope'' to refer to the
                vineyard's location.
                 Six of the comments support the establishment of the Laurelwood
                District AVA as proposed. The supporting comments all came from self-
                identified local wine industry members. The comments generally support
                the proposed Laurelwood District AVA due to the prevalence of the
                Laurelwood soil, and believe that the establishment of the proposed AVA
                would provide consumers with more information about the origin of the
                grapes in the wine, rather than cause confusion. Comment 6 also stated
                the belief that there is ample evidence that the region of the proposed
                AVA is known as ``Laurelwood,'' but did not provide any additional
                examples.
                TTB Response to Opposing Comments
                 TTB believes that the commenters who oppose the proposed
                ``Laurelwood District'' AVA name may misunderstand the rationale for
                the proposed name and what limitations its establishment would place on
                the use of the Laurelwood soil name on a wine label or in advertising.
                Although the prominent soil series in both the proposed Tualatin Hills
                and Laurelwood District AVAs is called ``Laurelwood,'' the proposed
                Laurelwood District AVA does not derive its name from the soil but from
                the community of Laurelwood, which, according to the petition, was
                named after a school built in the area in 1904. The soil series was
                first formally identified by the USDA in 1974,\1\ on Iowa Hill within
                the proposed AVA. Establishment of the proposed Laurelwood District AVA
                would not set a precedent of naming AVAs after a soil series because
                Sec. 9.12(a)(1) of the TTB regulations requires a petitioner to
                provide evidence that the region is referred to by the proposed name.
                If the proposed name refers only to a soil series, the name would not
                meet the regulatory requirements. TTB has determined that the petition
                provided sufficient evidence to demonstrate that the name
                ``Laurelwood'' applies to the larger region surrounding the community
                of Laurelwood, including the region of the proposed AVA, and that the
                name does not apply solely to the soil series.
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                 \1\ https://soilseries.sc.egov.usda.gov/OSD_Docs/L/LAURELWOOD.html.
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                 Furthermore, TTB notes that at least 20 established AVAs share
                their names with soils or soil series. For example, Comment 8,
                submitted in response to the proposed rulemaking, mentions The Rocks
                District of Milton-Freewater AVA (27 CFR 9.249), which shares its name
                with the Freewater soil series,\2\ a soil series found within and
                outside of the AVA.\3\ The Loess Hills District AVA (27 CFR 9.255)
                includes the word ``loess,'' which is the predominant type of soil
                found within the AVA but also exists elsewhere.\4\ The Arroyo Seco AVA
                (27 CFR 9.59) shares its name with the Arroyo Seco soil series,\5\
                which is found within the AVA and elsewhere in Monterey County,
                California.\6\ The establishment of these AVAs does not prohibit
                winemakers from mentioning the presence of the soil series in their
                vineyards, nor does it prohibit any other AVAs from containing these
                soils. Further, when established, no commenters expressed concern or
                opposition that these AVAs share names with a soil series found within
                and outside their boundaries.
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                 \2\ https://soilseries.sc.egov.usda.gov/OSD_Docs/F/FREEWATER.html.
                 \3\ ``Petition to establish The Rocks District of Milton-
                Freewater American Viticultural Area, Oregon,'' Page 3, within
                Docket No. TTB-2014-0003 at https://www.regulations.gov.
                 \4\ 80 FR 34857, 34858-34859, ``Notice of Proposed Rulemaking--
                Proposed Establishment of the Loess Hills District Viticultural
                Area.''
                 \5\ https://soilseries.sc.egov.usda.gov/OSD_Docs/A/ARROYO_SECO.html.
                 \6\ See Figure 5.8-1 of the Environmental Impact Report of the
                Rancho San Juan Specific Plan and HYH Property Project, https://www.co.monterey.ca.us/home/showdocument?id=36998.
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                 Additionally, although the distinguishing feature of the proposed
                Laurelwood District AVA is the Laurelwood soil series, it is not merely
                the presence of this soil that defines the proposed AVA. The Laurelwood
                soil series does have a very narrow range, but it is found in some of
                the regions surrounding the proposed Laurelwood District AVA, including
                the proposed Tualatin Hills AVA. What primarily distinguishes the
                proposed Laurelwood District AVA from other regions that contain
                Laurelwood soil is the near-uniformity of the soil within the proposed
                boundaries. Soil maps included as Exhibit A-1 of the Tualatin Hills AVA
                petition and Figure 1 of the Laurelwood District AVA show that the
                soils of the proposed Laurelwood AVA consist almost entirely of
                Laurelwood series, whereas the proposed Tualatin Hills AVA has large
                patches of Laurelwood soils separated by expanses of soils from other
                series, including Kinton and Cornelius soils.\7\ Because Exhibit A-1
                was too large to include in the online public docket, TTB has placed a
                similar image of the entire extent of the Laurelwood soil series
                [[Page 34098]]
                obtained from the University of California-Davis Soil Series Extent
                Explorer \8\ in the docket. Establishment of the AVA would not mean
                that TTB does not recognize the presence of Laurelwood soil in other
                regions or AVAs, only that TTB recognizes the ubiquity of the soil
                within the proposed AVA as the feature that distinguishes it from the
                surrounding regions.
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                 \7\ See Exhibits A-1 and Figure 1 in the docket number TTB-2019-
                0003 at www.regulations.gov.
                 \8\ https://casoilresource.lawr.ucdavis.edu/see/#laurelwood.
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                 TTB is proposing to make only the full name of the proposed
                Laurelwood District AVA a term of viticultural significance.
                Additionally, current label holders who use the word ``Laurelwood'' in
                a brand name would not be affected by the establishment of the
                Laurelwood District AVA.
                 Finally, although comment 4 provided some alternative names for the
                proposed Laurelwood District AVA, the comment only noted that the names
                were names of features or communities within the proposed AVA. The
                comment did not include evidence that the entire region of the proposed
                AVA is known by any of these alternative names, as required by Sec.
                9.12(a)(1). The link to the Ponzi Vineyards website included in the
                comment \9\ does note that the family's vineyards are ``situated on the
                North slope (sic)'' of the Chehalem Mountains AVA, but it is unclear if
                this statement uses the phrase ``North slope'' more to describe the
                geographic orientation of the vineyards, rather than as the name of the
                entire region. Therefore, TTB cannot determine that ``North Slope'' or
                any of the other suggested names would be more appropriate for the
                proposed AVA than ``Laurelwood District.''
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                 \9\ https://www.ponzivineyards.com/About-Us/Vineyards.
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                TTB Determination
                 After careful review of the petition and the comments received in
                response to Notice No. 181, TTB finds that the evidence provided by the
                petitioners supports the establishment of the Tualatin Hills and
                Laurelwood District AVAs. Accordingly, under the authority of the FAA
                Act, section 1111(d) of the Homeland Security Act of 2002, and part 4
                of the TTB regulations, TTB establishes the ``Tualatin Hills'' AVA in
                portions of Multnomah and Washington Counties, Oregon, and the
                ``Laurelwood District'' AVA in portions of Washington and Yamhill
                Counties, Oregon, effective 30 days from the publication date of this
                document.
                 TTB has also determined that the Tualatin Hills AVA will remain
                part of the established Willamette Valley AVA. As discussed in Notice
                No. 181, the Tualatin Hills AVA shares some broad characteristics with
                the Willamette Valley AVA. For example, elevations within both AVAs are
                generally below 1,000 feet, and the soils are primarily silty loams and
                clay loams. However, the Tualatin Hills AVA is comprised mainly of
                rolling hills and lacks the major valley floors that are a primary
                feature of the Willamette Valley AVA. Additionally, annual rainfall
                amounts are slightly higher for the Tualatin Hills AVA than for the
                Willamette Valley AVA in general.
                 TTB has also determined that the Laurelwood District AVA will
                remain part of both the established Willamette Valley AVA and the
                established Chehalem Mountains AVA. As discussed in Notice No. 181, the
                Laurelwood District AVA shares some broad characteristics with both
                established AVAs. For example, both the Willamette Valley AVA and the
                Laurelwood District AVA are in the rain shadow of the Cascade Mountains
                and, therefore, share similar annual rainfall amounts and growing
                degree day accumulations. Like the Chehalem Mountains AVA, the
                Laurelwood District AVA consists of hilly-to-mountainous terrain with
                vineyards planted at elevations between 200 and 1,000 feet. However,
                the Laurelwood District AVA differs from both the Willamette Valley and
                Chehalem Mountains AVAs because its primary soil is the Laurelwood
                series, whereas the other two AVAs have a much wider diversity of
                soils.
                Boundary Description
                 See the narrative description of the boundary of the Tualatin Hills
                AVA and the Laurelwood District 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. The boundaries of the Tualatin Hills and
                Laurelwood District AVAs 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 these two AVAs, their names, ``Tualatin
                Hills'' and ``Laurelwood District,'' will be recognized as names 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 ``Tualatin Hills'' or
                ``Laurelwood District'' 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. TTB is not designating the phrase ``Laurelwood''
                as a term of viticultural significance, in order to avoid a potential
                negative effect on current labels that use ``Laurelwood'' as part of a
                brand name or as a truthful description of vineyard soils on wine
                labels. Therefore, the phrase ``Laurelwood'' (without the word
                ``district'') may be used as a brand name, part of a brand name, or a
                truthful description of vineyard soils on wine labels without having to
                meet the appellation of origin eligibility requirements for the
                Laurelwood District AVA.
                 The establishment of the Tualatin Hills and Laurelwood District
                AVAs will not affect any existing AVA, and any bottlers using
                ``Willamette Valley'' or ``Chehalem Mountains'' as an appellation of
                origin or in a brand name for wines made from grapes grown within the
                Willamette Valley AVA will not be affected by the establishment of
                these new AVAs. The establishment of the Tualatin Hills AVA will allow
                vintners to use ``Tualatin Hills'' and ``Willamette Valley'' as
                appellations of origin for wines made primarily from grapes grown
                within the Tualatin Hills AVA if the wines meet the eligibility
                requirements for the appellation. The establishment of the Laurelwood
                District AVA will allow vintners to use ``Laurelwood District,''
                ``Willamette Valley,'' and ``Chehalem Mountains'' as appellations of
                origin for wines made
                [[Page 34099]]
                primarily from grapes grown within the Laurelwood District 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. 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. Subpart C is amended by adding Sec. 9.268 to read as follows:
                Sec. 9.268 Tualatin Hills.
                 (a) Name. The name of the viticultural area described in this
                section is ``Tualatin Hills''. For purposes of part 4 of this chapter,
                ``Tualatin Hills'' is a term of viticultural significance.
                 (b) Approved maps. The 6 United States Geological Survey (USGS)
                1:24,000 scale topographic maps and the single 1:250,000 scale
                topographic map used to determine the boundary of the Tualatin Hills
                viticultural area are titled:
                 (1) Vancouver, 1974 (1:250,000);
                 (2) Dixie Mountain, OR, 2014;
                 (3) Gaston, OR, 2014;
                 (4) Laurelwood, OR, 2014;
                 (5) Forest Grove, OR, 2014;
                 (6) Hillsboro, OR, 2014; and
                 (7) Linnton, OR, 2014.
                 (c) Boundary. The Tualatin Hills viticultural area is located in
                Clackamas, Multnomah and Washington Counties, in Oregon. The boundary
                of the Tualatin Hills viticultural area is as described below:
                 (1) The beginning point is on the Dixie Mountain map at the
                intersection of North West Skyline Boulevard and North West Moreland
                Road. From the beginning point, proceed southwesterly along North West
                Moreland Road for approximately 1.3 miles to road's intersection with
                the Multnomah-Washington County line; then
                 (2) Proceed south along the Multnomah-Washington County for
                approximately 1.2 miles to the county line's intersection with the
                1,000-foot elevation contour; then
                 (3) Proceed northwesterly along the 1,000-foot elevation contour,
                crossing onto the Vancouver map and continuing generally southwesterly
                along the meandering 1,000-foot elevation contour to its intersection
                with the Washington-Yamhill County line; then
                 (4) Proceed east along the Washington-Yamhill County line, crossing
                onto the Gaston map, to the intersection of the county line with NW
                South Road; then
                 (5) Proceed northeast along NW South Road to its intersection with
                SW South Road; then
                 (6) Proceed northeasterly along SW South Road to its intersection
                with the 200-foot elevation contour; then
                 (7) Proceed easterly along the 200-foot elevation contour for
                approximately 1.9 miles to its intersection with East Main Street/SW
                Gaston Road in the village of Gaston; then
                 (8) Proceed south, then east along SW Gaston Road for approximately
                0.9 mile, crossing onto the Laurelwood map, to the road's intersection
                with the 240-foot contour line just south of an unnamed road known
                locally as SW Dixon Mill Road; then
                 (9) Proceed north along the meandering 240-foot elevation contour
                for approximately 5 miles to its intersection with SW Sandstrom Road;
                then
                 (10) Proceed west along SW Sandstrom Road for approximately 0.15
                mile to its third crossing of the 200-foot elevation contour; then
                 (11) Proceed northwesterly and then northeasterly along the
                meandering 200-foot contour line for approximately 2.9 miles to its
                intersection with an unnamed road known locally as SW Fern Hill Road,
                north of an unnamed road known locally as SW Blooming Fern Hill Road;
                then
                 (12) Proceed north along SW Fern Hill Road for approximately 1.2
                miles, crossing onto the Forest Grove map, to the road's intersection
                with Oregon Highway 47; then
                 (13) Proceed northerly along Oregon Highway 47 for approximately
                7.6 miles to its intersection with Oregon Highway 6/NW Wilson River
                Highway; then
                 (14) Proceed east along Oregon Highway 6/NW Wilson River Highway
                for approximately 2.5 miles to its intersection with Sunset Highway;
                then
                 (15) Proceed southeast along Sunset Highway for approximately 2.3
                miles to its intersection with the railroad tracks; then
                 (16) Proceed east along the railroad tracks, crossing onto the
                Hillsboro map, to the intersection of the railroad tracks and an
                unnamed road known locally as NW Dick Road; then
                 (17) Proceed south along NW Dick Road for approximately 0.3 mile to
                its intersection with NW Phillips Road; then
                 (18) Proceed east along NW Phillips Road for approximately 1.2
                miles, crossing onto the Linnton map, to the road's intersection with
                an unnamed road known locally as NW Old Cornelius Pass Road; then
                 (19) Proceed northeast along NW Old Cornelius Pass Road to its
                intersection with NW Skyline Boulevard Road; then
                 (20) Proceed north and west along NW Skyline Boulevard for
                approximately 10.5 miles, crossing over the northeast corner of the
                Hillsboro map and onto the Dixie Mountain map and then returning to the
                beginning point.
                0
                3. Subpart C is amended by adding Sec. 9.269 to read as follows:
                Sec. 9.269 Laurelwood District.
                 (a) Name. The name of the viticultural area described in this
                section is ``Laurelwood District''. For purposes of part 4 of this
                chapter, ``Laurelwood District'' is a term of viticultural
                significance.
                 (b) Approved maps. The six United States Geological Survey (USGS)
                1:24,000 scale topographic maps used to determine the boundary of the
                Laurelwood District viticultural area are titled:
                 (1) Laurelwood, OR, 2014;
                 (2) Scholls, Oreg., 1961; photorevised 1985;
                 (3) Newberg, OR, 2014;
                 (4) Beaverton, Oreg., 1961; photorevised 1984;
                 (5) Sherwood, Oreg., 1961; photorevised 1985; and
                 (6) Dundee, Oreg., 1956; revised 1993.
                 (c) Boundary. The Laurelwood District viticultural area is located
                in
                [[Page 34100]]
                Washington and Yamhill Counties, in Oregon. The boundary of the
                Laurelwood District viticultural area is as described below:
                 (1) The beginning point is on the Laurelwood map at the
                intersection of Winters Road and Blooming Fern Hill Road in section 17,
                T1S/R3W. From the beginning point, proceed west then northwest along
                Blooming Fern Hill Road for approximately 0.4 mile to its intersection
                with the 200-foot elevation contour; then
                 (2) Proceed north then northeasterly along the 200-foot elevation
                contour for 1.5 miles to its intersection with SW La Follette Road;
                then
                 (3) Proceed south along SW La Follette Road for 0.25 mile to its
                intersection with the 240-foot elevation contour, north of Blooming
                Fern Hill Road; then
                 (4) Proceed easterly then southerly along the 240-foot elevation
                contour, crossing onto the Scholls map and back onto the Laurelwood
                map, for a total of 17 miles to the intersection of the elevation
                contour with SW Laurel Road; then
                 (5) Proceed east along SW Laurel Road for 0.15 mile to its
                intersection with the 200-foot elevation contour; then
                 (6) Proceed easterly along the 200-foot elevation contour, crossing
                over the Scholls map and onto the Newberg map, then crossing Heaton
                Creek and back onto the Scholls map for a total of 17.5 miles to the
                intersection of the elevation contour with Mountain Home Road east of
                Heaton Creek; then
                 (7) Proceed easterly then southerly along the 200-foot elevation
                contour, crossing over the Beaverton and Sherwood maps and back onto
                the Scholls map for a total of 8.9 miles to the intersection of the
                elevation contour with the middle tributary of an unnamed stream along
                the western boundary of section 24, T2S/R2W; then
                 (8) Proceed southeast along the 200-foot elevation contour,
                crossing over the northeast corner of the Newberg map and onto the
                Sherwood map, to the intersection of the elevation contour with Edy
                Road in section 25, T2S/R2W; then
                 (9) Proceed southwest along the 200-foot elevation contour,
                crossing onto the Newberg map and back onto the Sherwood map, to the
                intersection of the elevation contour with Elwert Road along the
                eastern boundary of section 25, T2S/R2W; then
                 (10) Proceed south along Elwert Road for 0.85 mile to its
                intersection with an unnamed highway known locally as Oregon Highway
                99W, along the eastern boundary of section 36, T2S/R2W; then
                 (11) Proceed southwesterly along Oregon Highway 99W for 0.45 mile
                to its intersection with the 250-foot elevation contour immediately
                south of an unnamed tributary of Cedar Creek in section 36, T2S/R2W;
                then
                 (12) Proceed southerly along the 250-foot elevation contour for 1
                mile to its intersection with Middleton Road in section 1, T2S/R2W;
                then
                 (13) Proceed southwesterly along Middleton Road, which becomes Rein
                Road, for 0.5 mile to the intersection of the road with the 200-foot
                elevation contour immediately south of Cedar Creek; then
                 (14) Proceed easterly along the 200-foot elevation contour for 1.6
                miles to its intersection with an unnamed light-duty east-west road
                known locally as Brookman Road in the village of Middleton, section 6,
                T3S/R1W; then
                 (15) Proceed east on Brookman Road for 0.4 mile to its intersection
                with the shared Washington-Clackamas County line at the western corner
                of section 5, T3S/R1W; then
                 (16) Proceed south along the Washington-Clackamas County line for 1
                mile to its intersection with Parrett Mountain Road along the eastern
                boundary of section 7, T3S/R1W; then
                 (17) Proceed southwesterly along Parrett Mountain Road, crossing
                onto the Newberg map, for a total of 2.6 miles, to the intersection
                with an unnamed local road known locally as NE Old Parrett Mountain
                Road; then
                 (18) Proceed west along NE Old Parrett Mountain Road for 1.7 mile
                to its intersection with NE Schaad Road; then
                 (19) Proceed west along NE Schaad Road for 0.5 mile to its
                intersection with an unnamed local road known locally as NE Corral
                Creek Road; then
                 (20) Proceed north along NE Corral Creek Road for 0.9 mile to its
                westernmost intersection with an unnamed local road known locally as NE
                Veritas Lane, south of Oregon Highway 99W; then
                 (21) Proceed north westerly in a straight line for approximately
                0.05 mile to the intersection of Oregon Highway 99W and the 250-foot
                elevation contour; then
                 (22) Proceed northwesterly along the 250-foot elevation contour for
                1 mile to its intersection with the second, westernmost intermittent
                stream that is an unnamed tributary of Spring Brook; then
                 (23) Proceed northerly along the unnamed stream, crossing the
                single-gauge railroad track, for 0.5 mile to the intersection of the
                stream with the 430-foot elevation contour; then
                 (24) Proceed west along the 430-foot elevation contour for 0.25
                mile, crossing an unnamed road known locally as Owls Lane, to the
                intersection of the elevation contour with NE Kincaid Road; then
                 (25) Proceed northwesterly along NE Kincaid Road for 0.25 mile to
                its intersection with NE Springbrook Road; then
                 (26) Proceed northwesterly along NE Springbrook Road for 0.22 mile
                to its intersection with an unnamed road known locally as Bell Road;
                then
                 (27) Proceed east along Bell Road for 0.5 mile, making a sharp
                northwesterly turn, then continuing along the road for 0.2 mile to its
                intersection with Mountain Top Road; then
                 (28) Proceed northwesterly along Mountain Top Road for 1.9 miles to
                its intersection with SW Hillsboro Highway, also known as Highway 219;
                then
                 (29) Proceed north along SW Hillsboro Highway for 0.1 mile to its
                intersection with Mountain Top Road at the Washington-Yamhill County
                line; then
                 (30) Proceed northwest along Mountain Top Road for 3.1 miles,
                crossing onto the Dundee map, to the intersection of the road with Bald
                Peak Road in section 26, T2S/R3W; then
                 (31) Proceed northwest, then northeast, then north along Bald Peak
                Road, crossing onto the Laurelwood map, for a total of 4.8 miles, to
                the intersection of the road with SW Laurelwood Road; then
                 (32) Proceed southwest, then northwest, along SW Laurelwood Road
                for 0.8 mile to its intersection with the 700-foot elevation contour;
                then
                 (33) Proceed northeast, then northwest, then north along the 700-
                foot elevation contour for 5 miles, passing west of Iowa Hill and
                Spring Hill, to the intersection of the elevation contour and SW
                Winters Road; then
                 (34) Proceed north on SW Winters Road for 2 miles, returning to the
                beginning point.
                 Signed: January 28, 2020.
                Mary G. Ryan,
                Acting Administrator.
                 Approved: May 13, 2020.
                Timothy E. Skud,
                Deputy Assistant Secretary (Tax, Trade, and Tariff Policy).
                [FR Doc. 2020-10919 Filed 6-2-20; 8:45 am]
                 BILLING CODE 4810-31-P
                

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