Proposed Establishment of the Candy Mountain Viticultural Area and Modification of the Yakima Valley Viticultural Area

Citation84 FR 42863
Record Number2019-17688
Published date19 August 2019
CourtAlcohol And Tobacco Tax And Trade Bureau
Federal Register, Volume 84 Issue 160 (Monday, August 19, 2019)
[Federal Register Volume 84, Number 160 (Monday, August 19, 2019)]
                [Proposed Rules]
                [Pages 42863-42869]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2019-17688]
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                DEPARTMENT OF THE TREASURY
                Alcohol and Tobacco Tax and Trade Bureau
                27 CFR Part 9
                [Docket No. TTB-2019-0006; Notice No. 184]
                RIN 1513-AC42
                Proposed Establishment of the Candy Mountain Viticultural Area
                and Modification of the Yakima Valley Viticultural Area
                AGENCY: Alcohol and Tobacco Tax and Trade Bureau, Treasury.
                ACTION: Notice of proposed rulemaking.
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                SUMMARY: The Alcohol and Tobacco Tax and Trade Bureau (TTB) proposes to
                establish the 815-acre ``Candy Mountain'' viticultural area in Benton
                County, Washington. TTB also proposes to expand the boundary of the
                existing 1,093-acre Yakima Valley viticultural area by approximately 72
                acres in order to avoid a partial overlap with the proposed Candy
                Mountain viticultural area. Both the existing Yakima Valley AVA and the
                proposed Candy Mountain AVA are located entirely within the existing
                Columbia Valley AVA. TTB designates viticultural areas to allow
                vintners to better describe the origin of their wines and to allow
                consumers to better identify wines they may purchase. TTB invites
                comments on these proposals.
                DATES: TTB must receive your comments on or before October 18, 2019.
                ADDRESSES: You may electronically submit comments to TTB on this
                proposal, and view copies of this document, its supporting materials,
                and any comments TTB receives on it within Docket No. TTB-2019-0006 as
                posted on Regulations.gov (https://www.regulations.gov), the Federal e-
                rulemaking portal. Please see the ``Public Participation'' section of
                this document below for full details on how to comment on this proposal
                via Regulations.gov, U.S. mail, or hand delivery, and for full details
                on how to view or obtain copies of this document, its supporting
                materials, and any comments related to this proposal.
                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 Department 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 provisions.
                 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 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 its
                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 that affect viticulture, such as climate, geology,
                [[Page 42864]]
                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; and
                 A detailed narrative description of the proposed AVA
                boundary based on USGS map markings.
                Petition To Establish the Candy Mountain AVA and To Modify the Boundary
                of the Yakima Valley AVA
                 TTB received a petition from Dr. Kevin R. Pogue, a professor of
                geology at Whitman College, proposing to establish the ``Candy
                Mountain'' AVA and to modify the boundary of the existing Yakima Valley
                AVA (27 CFR 9.69). Dr. Pogue submitted the petition on behalf of the
                following industry members with wine businesses within the proposed
                AVA: Ramer Holtan, who is developing a commercial wine grape vineyard
                on Candy Mountain; Premiere Columbia Partners LLC, owners of Candy
                Mountain Vineyard; and Paul and Vickie Kitzke, owners of Kitzke
                Cellars. The proposed Candy Mountain AVA is located in Benton County,
                Washington, and is entirely within the existing Columbia Valley AVA (27
                CFR 9.74), and partially within the existing Yakima Valley AVA. Within
                the 815-acre proposed AVA, currently there are two producing commercial
                vineyards, Candy Mountain Vineyard and Kitzke Cellars, which cover a
                total of approximately fifty-four acres. Additionally, Mr. Holtan has
                secured long-term leases from the Washington Department of Natural
                Resources to plant two hundred additional acres of vineyards within the
                proposed AVA. A copy of the lease was included in the petition as
                evidence of Mr. Holtan's intent to grow wine grapes. Currently, Kitzke
                Cellars is the only winery within the proposed AVA, although the
                petition notes that other wineries in Washington produce wines from
                grapes grown within the proposed AVA.
                 Although most of the proposed Candy Mountain AVA is located within
                the existing Yakima Valley AVA, a small portion of the proposed AVA
                would, if established, extend outside the current eastern boundary of
                the Yakima Valley AVA. To address the potential partial overlap of the
                two AVAs and account for viticultural similarities between the proposed
                Candy Mountain AVA and the larger Yakima Valley AVA, the petition also
                proposes to expand the boundary of the Yakima Valley AVA so that the
                entire proposed Candy Mountain AVA would be included within it. The
                proposed expansion would increase the size of the 1,093-acre Yakima
                Valley AVA by 72 acres.
                 The distinguishing features of the proposed Candy Mountain AVA are
                its soils and topography. Although the petition also included
                information on the general climate of the proposed AVA, the petition
                did not include any actual climate data from within the proposed Candy
                Mountain AVA. Instead, the petition provided climate data from the
                nearby established Red Mountain AVA (27 CFR 9.167), which the petition
                asserts has a similar climate. Because the petition did not include
                evidence from within the proposed AVA to support its climate claims,
                TTB is unable to determine that climate is a distinguishing feature of
                the proposed AVA. Therefore, this proposed rule does not include a
                discussion of the climate of the proposed AVA. Unless otherwise noted,
                all information and data contained in the following sections are from
                the petition to establish the proposed AVA and its supporting exhibits.
                Proposed Candy Mountain AVA
                Name Evidence
                 The proposed Candy Mountain AVA is located on the southwestern
                slopes of a mountain known as Candy Mountain. The mountain is labeled
                on the Richland quadrangle USGS map used to form part of the proposed
                AVA boundary. According to several articles included in the petition, a
                planned nature preserve that would be located at the summit of the
                mountain is referred to as the Candy Mountain Preserve. A housing
                development at the base of the mountain is named Candy Mountain Estates
                and includes a road called Candy Mountain Avenue.
                 The region within the proposed AVA is also referred to as ``Candy
                Mountain'' by members of the wine industry. Premiere Columbia Partners
                LLC named its vineyard within the proposed AVA ``Candy Mountain
                Vineyard.'' \1\ The petition included a page from the website of the
                L'Ecole No. 41 Winery showing a wine made from grapes from the Premiere
                Columbia Partners vineyard labeled as ``Candy Mountain Vineyard Red
                Wine.'' \2\ Additionally, Kitzke Cellars refers to the location of its
                tasting room as ``on Candy Mountain.'' \3\
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                 \1\ http://premierewinegrapes.com/about.
                 \2\ http://www.lecole.com/2013-candy-mountain-red-wine.
                 \3\ http://www.kitzkecellars.com/about.
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                Boundary Evidence
                 The proposed Candy Mountain AVA is located in Benton County,
                Washington, just southwest of the city of West Richland, on the
                southwestern slopes of Candy Mountain. The proposed AVA has a roughly
                oval shape and is oriented along a northwest-southeast axis. The
                proposed northern, western, and southern boundaries follow roads and
                interstate highways that are located along the base of the mountain.
                Most of the eastern boundary follows a line drawn along the crest of
                the mountain to separate the proposed AVA from the northeastern-facing
                side of the mountain. The remainder of the eastern boundary follows
                roads to encompass land near the base of the mountain that has slope
                angles and slope aspects that are similar to those on the southwestern
                side of the mountain.
                Distinguishing Features
                 According to the petition, the distinguishing features of the
                proposed Candy Mountain AVA are its soils and topography.
                Soils
                 The petition states that the soils of the proposed Candy Mountain
                AVA are developed from wind-deposited silt (loess) and fine sand
                overlying sediment deposited by ice-age floods. The sediment is a
                mixture of gravel and sand that was derived directly from the surging
                ice-age flood waters and also includes silt and fine sand that settled
                out of suspension when the flood waters pooled behind downstream
                topographic restrictions. The loess and sediment, in turn, both overlay
                basalt bedrock.
                 According to the petition, the thickness of the sediment deposited
                by ice-age flood waters gradually decreases as elevations increase,
                since the lower elevations were more frequently and heavily inundated
                by multiple ice-age floods. The petition states that the maximum
                elevation reached by the ice-age flood waters in the region of the
                proposed AVA was approximately 1,250 feet. The thickness of the flood-
                water sediment within the proposed Candy Mountain AVA gradually
                decreases as one moves up the mountain, and the sediment is not found
                within the upper 70 feet of the proposed AVA. By contrast, the regions
                to the north, south, and west of the mountain and the proposed Candy
                Mountain AVA are at lower elevations and, therefore, have thicker
                accumulations of flood sediments.
                 The petition states that the thickness of the loess and fine sands
                that form much of the surface soil within the
                [[Page 42865]]
                larger Columbia Basin, including the proposed Candy Mountain AVA, also
                varies with respect to slope angle and slope aspect. Since the loess
                and fine sands were deposited by winds, they accumulated to greater
                depth on shallower slopes, on hillsides that face away from the
                prevailing winds, and in areas that are at lower elevations relative to
                their surroundings. The petition states the soils in the proposed AVA
                are shallower than the surrounding valley soils because the proposed
                Candy Mountain AVA has higher elevations and steeper slopes than the
                surrounding valley floor, and also faces into the prevailing winds.
                 According to the petition, the soils of the proposed AVA have an
                effect on viticulture. The soils are fairly loose, which allows for
                root expansion. The soils also do not have a large water holding
                capacity, meaning that vineyard owners must monitor soil moisture
                carefully to ensure the vines have adequate access to water. Soils with
                low water-holding capacities also induce stress for grape vines, which
                may limit vegetative growth and promote earlier ripening of the grapes.
                Finally, the thin soils allow roots to come into contact with the
                underlying basalt bedrock, which is comprised of calcium-rich feldspars
                and other minerals that are rich in iron and magnesium, such as
                pyroxene and olivine. The petition states that these minerals and
                nutrients are only present in the bedrock, so vines planted in the
                surrounding regions where the soil is thicker do not have the same
                access to these elements as vines planted within the proposed AVA.
                Topography
                 The primary distinguishing topographic features of the proposed
                Candy Mountain AVA are its elevation, slope angle, and slope aspect.
                Elevation
                 The proposed Candy Mountain AVA is located on the southwest slopes
                of Candy Mountain, one of a series of four small mountains that are
                aligned over a distance of 10 miles along a northwest-southeast
                trending axis. Locally, these mountains are known as the ``rattles,''
                due to their segmented nature and their alignment with the much larger
                Rattlesnake Mountain, which is to the northwest. The four ``rattles''
                rise above the surrounding Yakima Valley. Within the proposed Candy
                Mountain AVA, elevations range from 640 feet to 1,320 feet. By
                contrast, much of the land immediately surrounding the proposed AVA is
                a valley floor with elevations below 640 feet. The exception is the
                northeastern side of Candy Mountain, which has similar elevations to
                the proposed Candy Mountain AVA but was excluded from the proposed AVA
                due to its different slope angles and slope aspect.
                 According to the proposed AVA, the elevation of the proposed Candy
                Mountain AVA affects viticulture. The petition states that vineyards
                planted at higher elevations, such as those within the proposed AVA,
                are less susceptible to damage from frosts and freezes associated with
                cool air drainage than lower elevations, such as the surrounding valley
                floor. The cool air does not collect in the higher elevation vineyards
                and instead flows down the hillsides and eventually settles in the
                valley floor.
                Slope Angle
                 According to the petition, Candy Mountain is a geological feature
                known as an anticline, which is an arch-like structure formed by
                compressional tectonic forces that bent and uplifted the basalt
                bedrock. The rock layers in an anticline are folded downward away from
                the central axis, similar to the roof of a house. The two sides of the
                anticline are called ``limbs.'' In the case of Candy Mountain, the
                inclination, or dip, of the limbs is asymmetric. The limb on the
                northeast side of the mountain has a much steeper dip than the limb on
                the southwest side, where the proposed Candy Mountain AVA is located.
                The northeast side of the mountain has slope angles of up to 60
                degrees. According to the petition, slope angles over 20 degrees are
                difficult to farm and are more susceptible to erosion than shallower
                angles. By contrast, the slope angles on the southwest side of the
                mountain, within in the proposed Candy Mountain AVA, are gentle to
                moderate and range from 2 to 20 degrees. The valley floor surrounding
                both the entire Candy Mountain and the proposed Candy Mountain AVA is
                essentially flat, with slope angles of less than 2 degrees, and is
                susceptible to cold air pooling and the associated frosts and freezes.
                Slope Aspect
                 The petition states that in the northern hemisphere, slopes with a
                southern aspect are favored for viticulture, especially at higher
                latitudes like the region of the proposed Candy Mountain AVA. A south-
                facing slope aspect increases the amount per unit area of solar
                radiation that reaches the surface and promotes photosynthesis in the
                grape vines, as well as grape development and maturation. The proposed
                Candy Mountain AVA is located on the southwest-facing slope of Candy
                Mountain. The opposite side of the mountain, outside of the proposed
                AVA, has a northeast slope aspect. Most of the surrounding valley floor
                is essentially flat, but where slopes exist, they are generally
                oriented towards the north.
                Summary of Distinguishing Features
                 Soils and topography distinguish the proposed Candy Mountain AVA
                from the surrounding regions. The soils consist mainly of a mixture of
                wind-deposited loess and fine sands overlying ice-age flood sediments.
                The topography includes elevations of 640-1,320 feet, slope angles of
                between 2 and 20 degrees, and a southwestern facing slope aspect.
                 The proposed Candy Mountain AVA is surrounded by the low, flat
                valley floor of the Yakima Valley to the north, south, and west. Where
                slopes do exist in these surrounding regions, they generally have a
                northerly aspect. Because these regions have shallower slope angles and
                lower elevations that were more frequently and heavily covered by ice-
                age floods, the soils are deeper than the soils of the proposed AVA. To
                the immediate east of the proposed AVA, on the eastern side of Candy
                Mountain, the elevations are similar to those of the proposed AVA.
                However, the slope angles to the immediate east of the proposed AVA are
                steeper, resulting in shallower soil depths. Additionally, the eastern
                side of the mountain is oriented to the northeast.
                Comparison of the Proposed Candy Mountain AVA to the Existing Yakima
                Valley AVA
                 The Yakima Valley AVA was established by T.D. ATF-128, which was
                published in the Federal Register on April 4, 1983 (48 FR 14374). The
                AVA is located in Yakima and Benton Counties, Washington, and covers
                approximately 1,093 acres. T.D. ATF-128 states that the Yakima Valley
                AVA is a valley drained by the Yakima River and surrounded by higher
                elevations on all sides. The western portion of the AVA is a vast
                expanse of flat land, while the eastern portion is comprised of gently
                sloping land. The primary soils of the Yakima Valley AVA that are used
                for viticulture are the Warden-Shano Association and the Scootenay-
                Starbuck Association. These soils are silt-loams over basalt bedrock
                and alluvial deposits. Rainfall within the AVA is sparse, generally
                averaging less than 10 inches a year.
                 The proposed Candy Mountain AVA shares some of the general
                viticultural features of the Yakima Valley AVA. For
                [[Page 42866]]
                example, the proposed AVA is located within the Yakima River drainage
                basin. Additionally, the soils of the proposed AVA are silts over
                basalt bedrock and ice-age alluvial deposits. Soils of the Warden,
                Shano, Scootenay, and Starbuck series are all present within the
                proposed AVA. The petition also states that a weather station at Benton
                City, 4 miles northwest of the proposed AVA, averaged 6 inches of
                rainfall annually between 2008 and 2015. However, TTB notes that no
                rainfall data was provided from within the proposed AVA.
                 Although the proposed Candy Mountain AVA shares some general
                characteristics with the overlapping Yakima Valley AVA, the proposed
                AVA does have some unique features. For instance, the proposed AVA is
                located on an isolated mountain, whereas the majority of the Yakima
                Valley AVA is described as a broad, flat valley. Additionally, the
                proposed Candy Mountain AVA has a greater diversity of soils than the
                primary agricultural regions of the Yakima Valley AVA. According to the
                petition, the proposed AVA was directly in the path of the fast-moving
                ice-age floodwaters that surrounded Candy Mountain, Red Mountain, and
                Badger Mountain. A strong back-eddy was created as the floodwaters
                surrounded these mountains, causing gravel and various other heavier
                particles to be deposited on the slopes of the mountains. By contrast,
                the soils in the primary agricultural areas of the Yakima Valley AVA
                are more homogenous because they were created from finer particles such
                as sand and silts that were deposited in a slack water environment.
                Proposed Modification of the Yakima Valley AVA
                 As previously noted, the petition to establish the proposed Candy
                Mountain AVA also requested an expansion of the established Yakima
                Valley AVA. The proposed Candy Mountain AVA is located in the
                northeastern portion of the Yakima Valley AVA. Most of the proposed
                Candy Mountain AVA would, if established, be located within the current
                boundary of the Yakima Valley AVA. However, unless the boundary of the
                Yakima Valley AVA is modified, a small portion of the proposed Candy
                Mountain AVA would be outside the Yakima Valley AVA.
                 Currently, the Yakima Valley AVA boundary in the vicinity of the
                proposed AVA and the proposed expansion area follows a straight line
                drawn from the summit of Red Mountain, northwest of the proposed AVA,
                to the summit of Badger Mountain, southeast of the proposed AVA. The
                Yakima Valley AVA boundary crosses the summit of Candy Mountain and is
                concurrent with most of the northern boundary of the proposed Candy
                Mountain AVA. However, a small portion of the proposed AVA is outside
                the Yakima Valley AVA. This portion of the proposed Candy Mountain AVA
                (the ``proposed expansion area'') is shaped like a rectangle standing
                on end and is defined by Arena Road on the west, Dallas Road on the
                east, Interstate 182 on the south, and the 650-foot elevation contour
                on the north. The proposed modification of the Yakima Valley AVA
                boundary would increase the size of the established AVA by 72 acres and
                would result in the entire proposed Candy Mountain AVA being within the
                Yakima Valley AVA.
                 The proposed Candy Mountain AVA petition states that the vineyards
                within the proposed expansion area lie approximately 600 feet outside
                of the current boundary of the Yakima Valley AVA and did not exist at
                the time the Yakima Valley AVA was established. However, the petition
                states that the proposed expansion area is associated with both the
                feature known as the Yakima Valley and the Yakima Valley AVA. For
                example, the proposed expansion area is part of the larger Yakima River
                drainage basin, which is a characteristic of the Yakima Valley AVA.
                Additionally, the petition states that the owners of Kitzke Cellars,
                which manages the seven acres of vineyards within the proposed
                expansion area, have aligned themselves with the Yakima Valley AVA
                through their membership in Wine Yakima Valley, which is the Yakima
                Valley AVA's marketing organization.
                 The petition asserts that the proposed expansion area has similar
                soils, elevation, slope angles, and slope aspect to the remainder of
                the proposed Candy Mountain AVA, which is within the Yakima Valley AVA.
                The petition also describes the general similarities that the entire
                proposed Candy Mountain AVA shares with the established Yakima Valley
                AVA, such as similar soil series and geology. Therefore, because the
                petition demonstrates that the proposed expansion area has similar soil
                and topographic characteristics to the portion of the proposed Candy
                Mountain AVA that is within the Yakima Valley AVA, and that the
                proposed Candy Mountain AVA shares some general characteristics of the
                Yakima Valley AVA, TTB believes the petitioner's proposal to expand the
                Yakima Valley AVA to include the proposed expansion area merits
                consideration and public comment.
                Comparison of the Proposed Candy Mountain AVA to the Existing Columbia
                Valley AVA
                 The Columbia Valley AVA was established by T.D. ATF-190, which was
                published in the Federal Register on November 13, 1984 (49 FR 44897).
                The Columbia Valley AVA covers over 11 million acres in Washington
                surrounded by the Columbia, Snake, and Yakima Rivers. According to T.D.
                ATF-190, the AVA is a large, treeless, broadly undulating basin with
                elevations that are generally below 2,000 feet. In general, the growing
                season within the Columbia Valley AVA is over 150 days, and growing
                degree day accumulations generally number over 2,000. Soils generally
                reach a depth of 2 feet or more and are comprised of silt loam, fine
                sandy loam, sandy loam, or loamy sand.
                 The proposed Candy Mountain AVA is located in the south-central
                portion of the Columbia Valley AVA and shares some broad
                characteristics of the Columbia Valley AVA. For example, elevations
                within the proposed Candy Mountain AVA are below 2,000 feet. The
                petition also states that the proposed AVA has a similar climate to the
                Columbia Valley AVA, although no data is available from within the
                proposed AVA to support these claims.
                 However, the proposed Candy Mountain AVA does have several features
                that distinguish it from the Columbia Valley AVA. Most notably, the
                proposed AVA is characterized as an isolated hill, rather than a broad
                plain. Although the elevations within the proposed AVA are within the
                range of elevations found within the Columbia Valley AVA, the proposed
                AVA's elevations are significantly higher than those of the immediately
                surrounding regions. The petition states that the proposed AVA also has
                steeper slope angles than much of the land within the Columbia Valley
                AVA. Finally, due to the combination of higher elevations and steeper
                slope angles within the proposed AVA, soil depths within the proposed
                Candy Mountain AVA are shallower than the soil depths found within the
                majority of the Columbia Valley AVA.
                TTB Determination
                 TTB concludes that the petition to establish the 815-acre ``Candy
                Mountain'' AVA and to concurrently modify the boundary of the existing
                Yakima Valley AVA merits consideration and public comment, as invited
                in this document.
                 TTB is proposing the establishment of the new AVA and the
                modification of
                [[Page 42867]]
                the existing AVA as one action. Accordingly, if TTB establishes the
                proposed Candy Mountain AVA, then the proposed boundary modification of
                the Yakima Valley would be approved concurrently. If TTB does not
                establish the proposed Candy Mountain AVA, then the present Yakima
                Valley AVA boundary would not be modified.
                Boundary Description
                 See the narrative boundary descriptions of the petitioned-for AVA
                and the boundary modification of the established AVA in the proposed
                regulatory text published at the end of this document.
                Maps
                 The petitioner provided the required maps, and they are listed
                below in the proposed 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. For a wine to be labeled with 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 Sec. 4.25(e)(3) of the TTB regulations (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 Sec. 4.39(i)(2) of the TTB regulations (27 CFR
                4.39(i)(2)) for details.
                 If TTB establishes this proposed AVA, its name, ``Candy Mountain,''
                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
                proposed regulation clarifies this point. Consequently, wine bottlers
                using the name ``Candy Mountain'' in a brand name, including a
                trademark, or in another label reference as to the origin of the wine,
                would have to ensure that the product is eligible to use the AVA name
                as an appellation of origin if this proposed rule is adopted as a final
                rule.
                 If approved, the establishment of the proposed Candy Mountain AVA
                would not affect any existing AVA, and any bottlers using ``Columbia
                Valley'' or ``Yakima Valley'' as an appellation of origin or in a brand
                name for wines made from grapes grown within the Columbia Valley or
                Yakima Valley AVAs would not be affected by the establishment of this
                new AVA. The establishment of the proposed Candy Mountain AVA and
                expansion of the Yakima Valley AVA would allow vintners to use ``Candy
                Mountain,'' ``Yakima Valley,'' and ``Columbia Valley'' as appellations
                of origin for wines made from grapes grown within the proposed Candy
                Mountain AVA if the wines meet the eligibility requirements for the
                appellation. Additionally, vintners would be allowed to use ``Yakima
                Valley,'' ``Columbia Valley,'' and ``Candy Mountain'' as appellations
                of origin for wines made from grapes grown within the proposed Yakima
                Valley AVA expansion area if the wines meet the eligibility
                requirements for the appellation.
                Public Participation
                Comments Invited
                 TTB invites comments from interested members of the public on
                whether TTB should establish the proposed Candy Mountain AVA and
                concurrently modify the boundary of the established Yakima Valley AVA.
                TTB is interested in receiving comments on the sufficiency and accuracy
                of the name, boundary, topography, and other required information
                submitted in support of the Candy Mountain AVA petition. In addition,
                given the proposed Candy Mountain AVA's location within the existing
                Columbia Valley AVA and Yakima Valley AVA, TTB is interested in
                comments on whether the evidence submitted in the petition regarding
                the distinguishing features of the proposed AVA sufficiently
                differentiates it from the existing AVAs. TTB is also interested in
                comments on whether the geographic features of the proposed AVA are so
                distinguishable from either the Columbia Valley AVA or the Yakima
                Valley AVA that the proposed Candy Mountain AVA should not be part of
                one or either established AVA. Please provide any available specific
                information in support of your comments.
                 TTB also invites comments on the proposed expansion of the existing
                Yakima Valley AVA. TTB is especially interested in comments on whether
                the evidence provided in the petition sufficiently demonstrates that
                the proposed expansion area is similar enough to the Yakima Valley AVA
                to be included in the established AVA. Comments should address the
                boundaries, topography, soils, and any other pertinent information that
                supports or opposes the proposed Yakima Valley AVA boundary expansion.
                 Because of the potential impact of the establishment of the
                proposed Candy Mountain AVA on wine labels that include the term
                ``Candy Mountain'' as discussed above under Impact on Current Wine
                Labels, TTB is particularly interested in comments regarding whether
                there will be a conflict between the proposed area name and currently
                used brand names. If a commenter believes that a conflict will arise,
                the comment should describe the nature of that conflict, including any
                anticipated negative economic impact that approval of the proposed AVA
                will have on an existing viticultural enterprise. TTB is also
                interested in receiving suggestions for ways to avoid conflicts, for
                example, by adopting a modified or different name for the proposed AVA.
                Submitting Comments
                 You may submit comments on this proposal by using one of the
                following three methods:
                 Federal e-Rulemaking Portal: You may send comments via the
                online comment form posted with this document within Docket No. TTB-
                2019-0006 on ``Regulations.gov,'' the Federal e-rulemaking portal, at
                https://www.regulations.gov. A direct link to that docket is available
                under Notice No. 184 on the TTB website at https://www.ttb.gov/wine/wine-rulemaking.shtml. Supplemental files may be attached to comments
                submitted via Regulations.gov. For complete instructions on how to use
                Regulations.gov, visit the site and click on the ``Help'' tab at the
                top of the page.
                 U.S. Mail: You may send comments via postal mail to the
                Director, Regulations and Rulings Division, Alcohol and Tobacco Tax and
                Trade Bureau, 1310 G Street NW, Box 12, Washington, DC 20005.
                 Hand Delivery/Courier: You may hand-carry your comments or
                have them hand-carried to the Alcohol and Tobacco Tax and Trade Bureau,
                1310 G Street NW, Suite 400, Washington, DC 20005.
                 Please submit your comments by the closing date shown above in this
                document. Your comments must reference Notice No. 184 and include your
                name and mailing address. Your comments also must be made in English,
                be legible, and be written in language acceptable for public
                disclosure. We do not acknowledge
                [[Page 42868]]
                receipt of comments, and we consider all comments as originals.
                 Your comment must clearly state if you are commenting on your own
                behalf or on behalf of an organization, business, or other entity. If
                you are commenting on behalf of an organization, business, or other
                entity, your comment must include the entity's name as well as your
                name and position title. If you comment via Regulations.gov, please
                enter the entity's name in the ``Organization'' blank of the online
                comment form. If you comment via postal mail, please submit your
                entity's comment on letterhead.
                 You may also write to the Administrator before the comment closing
                date to ask for a public hearing. The Administrator reserves the right
                to determine whether to hold a public hearing.
                Confidentiality
                 All submitted comments and attachments are part of the public
                record and subject to disclosure. Do not enclose any material in your
                comments that you consider to be confidential or inappropriate for
                public disclosure.
                Public Disclosure
                 TTB will post, and you may view, copies of this document, selected
                supporting materials, and any online or mailed comments received about
                this proposal within Docket No. TTB-2019-0006 on the Federal e-
                rulemaking portal, Regulations.gov, at https://www.regulations.gov. A
                direct link to that docket is available on the TTB website at https://www.ttb.gov/wine/wine-rulemaking.shtml under Notice No. 184. You may
                also reach the relevant docket through the Regulations.gov search page
                at https://www.regulations.gov. For instructions on how to use
                Regulations.gov, visit the site and click on the ``Help'' tab at the
                top of the page.
                 All posted comments will display the commenter's name, organization
                (if any), city, and State, and, in the case of mailed comments, all
                address information, including email addresses. TTB may omit voluminous
                attachments or material that it considers unsuitable for posting.
                 You also may view copies of this document, all related petitions,
                maps and other supporting materials, and any electronic or mailed
                comments we receive about this proposal by appointment at the TTB
                Information Resource Center, 1310 G Street NW, Suite 400, Washington,
                DC 20005. You may also obtain copies at 20 cents per 8.5- x 11-inch
                page. Contact TTB's Regulations and Rulings Division at the above
                address, by email at https://www.ttb.gov/webforms/contact_RRD.shtm, or
                by telephone at 202-453-1039, ext. 175, to schedule an appointment or
                to request copies of comments or other materials.
                Regulatory Flexibility Act
                 TTB certifies that this proposed regulation, if adopted, would not
                have a significant economic impact on a substantial number of small
                entities. The proposed regulation imposes no new reporting,
                recordkeeping, or other administrative requirement. Any benefit derived
                from the use of a viticultural area 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
                 This proposed rule is not a significant regulatory action as
                defined by Executive Order 12866. Therefore, it requires no regulatory
                assessment.
                Drafting Information
                 Karen A. Thornton of the Regulations and Rulings Division drafted
                this document.
                List of Subjects in 27 CFR Part 9
                 Wine.
                Proposed Regulatory Amendment
                 For the reasons discussed in the preamble, we propose to amend
                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. Amend Sec. 9.69 by revising paragraphs (b) and (c)(4),
                redesignating paragraphs (c)(5) through (c)(10) as paragraphs (c)(11)
                through (16), and by adding new paragraphs (c)(5) through (c)(10) to
                read as follows:
                Sec. 9.69 Yakima Valley.
                * * * * *
                 (b) Approved maps. The four United States Geological Survey (USGS)
                maps used to determine the boundary of the Yakima Valley viticultural
                area are titled:
                 (1) Walla Walla, Washington (1:250,000 scale), 1953; limited
                revision 1963;
                 (2) Yakima, Washington (1:250,000 scale), 1958; revised 1971;
                 (3) Benton City, WA (1:24,000 scale), 2013;
                 (4) Badger Mountain, Washington (1:24,000 scale), 2013; and
                 (5) Richland, Washington (1:24,000 scale), 2014.
                * * * * *
                 (c) * * *
                 (4) Then southeast, crossing onto the Benton City map, to the top
                of Red Mountain;
                 (5) Then southeast to a point on East Kennedy Road approximately
                2,500 feet east of an intermittent stream flowing north into Lost Lake;
                 (6) Then southeast across the top of Candy Mountain, crossing onto
                the Badger Mountain map, and continuing to the intersection with the
                southernmost point of an unnamed road known locally as Arena Road; then
                 (7) Proceed north for 0.45 mile along Arena Road, crossing onto the
                Richland map, to the intersection with the 670-foot elevation contour;
                then
                 (8) Proceed generally east for 0.4 mile along the elevation contour
                to the intersection with Dallas Road; then
                 (9) Proceed south in a straight line for 0.5 mile, crossing onto
                the Badger Mountain map, to the intersection with Interstate 182; then
                 (10) Proceed southeast in a straight line, crossing onto the Walla
                Walla map, to the top of Badger Mountain;
                * * * * *
                0
                3. Add Sec. 9.__ to read as follows:
                Sec. 9.__ Candy Mountain.
                 (a) Name. The name of the viticultural area described in this
                section is ``Candy Mountain''. For purposes of part 4 of this chapter,
                ``Candy Mountain'' is a term of viticultural significance.
                 (b) Approved maps. The three United States Geological Survey (USGS)
                1:24,000 scale topographic maps used to determine the boundary of the
                Candy Mountain viticultural area are titled:
                 (1) Badger Mountain, Washington, 2013;
                 (2) Benton City, Washington, 2013; and
                 (3) Richland, Washington, 2014.
                 (c) Boundary. The Candy Mountain viticultural area is located in
                Benton County in Washington. The boundary of the Candy Mountain
                viticultural area is as described below:
                 (1) The beginning point is on the Badger Mountain map at the
                southernmost point of an unnamed road known locally as Arena Road. From
                the beginning point, proceed northwest in a straight line for
                approximately 1.85 miles, crossing onto the Benton City
                [[Page 42869]]
                map, to the intersection with East Kennedy Road NE; then
                 (2) Proceed westerly along East Kennedy Road NE for approximately
                2,500 feet to the intersection with an intermittent creek approximately
                0.8 mile south of Lost Lake; then
                 (3) Proceed southeasterly along the easternmost fork of the
                intermittent creek to the intersection with Interstate 82; then
                 (4) Proceed southeast along Interstate 82 for 2.25 miles, crossing
                over the Richland map and onto the Badger Mountain map, and continuing
                along the ramp onto Interstate 182 to a point due south of the
                intersection of Dallas Road and an unnamed road known locally as East
                260 Private Road NE; then
                 (5) Proceed north in a straight line for 0.5 mile, crossing onto
                the Richland map, to the intersection of Dallas Road and the 670-foot
                elevation contour; then
                 (6) Proceed west along the 670-foot elevation contour for 0.4 mile
                to the intersection with Arena Road; then
                 (7) Proceed southerly along Arena Road for approximately 0.45
                miles, returning to the beginning point.
                 Signed: June 18, 2019.
                Mary G. Ryan,
                Acting Administrator.
                 Approved: June 27, 2019.
                Timothy E. Skud,
                Deputy Assistant Secretary (Tax, Trade, and Tariff Policy).
                [FR Doc. 2019-17688 Filed 8-16-19; 8:45 am]
                 BILLING CODE 4810-31-P
                

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