Establishment of the Upper Hiwassee Highlands Viticultural Area, 41891-41894 [2014-16919]
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Federal Register / Vol. 79, No. 138 / Friday, July 18, 2014 / Rules and Regulations
PART 301—PROCEDURE AND
ADMINISTRATION
Paragraph 1. The authority citation
for part 301 is amended by adding an
entry in numerical order to read in part
as follows:
■
Authority: 26 U.S.C. 7805 * * *
Section 301.6039E–1 also issued under 26
U.S.C. 6039E.
Par. 2. Section 301.6039E–1 is added
to read as follows:
■
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§ 301.6039E–1 Information reporting by
passport applicants.
(a) In general. Every individual who
applies for a U.S. passport or the
renewal of a passport (passport
applicant), other than a passport for use
in diplomatic, military, or other official
U.S. government business, shall include
with his or her passport application the
information described in paragraph
(b)(1) of this section in the time and
manner described in paragraph (b)(2) of
this section.
(b) Required information—(1) In
general. The information required under
paragraph (a) of this section shall
include the following information:
(i) The passport applicant’s full name
and, if applicable, previous name;
(ii) The passport applicant’s
permanent address and, if different,
mailing address;
(iii) The passport applicant’s taxpayer
identifying number (TIN), if such a
number has been issued to the passport
applicant. A TIN means the individual’s
social security number (SSN) issued by
the Social Security Administration. A
passport applicant who does not have
an SSN must enter zeros in the
appropriate space on the passport
application; and
(iv) The passport applicant’s date of
birth.
(2) Time and manner for furnishing
information. A passport applicant must
provide the information required by this
section with his or her passport
application, whether by personal
appearance or mail, to the Department
of State (including United States
Embassies and Consular posts abroad).
(c) Penalties—(1) In general. If the
information required by paragraph (b)(1)
of this section is incomplete or
incorrect, or the information is not filed
in the time and manner described in
paragraph (b)(2) of this section, then the
passport applicant may be subject to a
penalty equal to $500 per application.
Before assessing a penalty under this
section, the IRS will provide to the
passport applicant written notice of the
potential assessment of the $500
penalty, requesting the information
being sought, and offering the applicant
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an opportunity to explain why the
information was not provided with the
passport application. A passport
applicant has 60 days from the date of
the notice of the potential assessment of
the penalty (90 days from such date if
the notice is addressed to an applicant
outside the United States) to respond to
the notice. If the passport applicant
demonstrates to the satisfaction of the
Commissioner (or the Commissioner’s
delegate) that the failure is due to
reasonable cause and not due to willful
neglect, after considering all the
surrounding circumstances, then the
IRS will not assess the penalty.
(2) Example. The following example
illustrates the provisions of paragraph
(c) of this section.
Example. C, a citizen of the United States,
makes an error in supplying information on
his passport application. Based on the nature
of the error and C’s timely response to correct
the error after being contacted by the IRS, the
Commissioner concludes that the mistake is
due to reasonable cause and not due to
willful neglect. Accordingly, no penalty is
assessed.
(d) Effective/applicability date. This
section applies to passport applications
submitted after July 18, 2014.
John Dalrymple,
Deputy Commissioner for Services and
Enforcement.
Approved: June 26, 2014.
Mark J. Mazur,
Assistant Secretary of the Treasury (Tax
Policy).
[FR Doc. 2014–16944 Filed 7–17–14; 8:45 am]
BILLING CODE 4830–01–P
DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade
Bureau
27 CFR Part 9
[Docket No. TTB–2013–0008; T.D. TTB–120;
Ref: Notice No. 139]
RIN 1513–AC02
Establishment of the Upper Hiwassee
Highlands Viticultural Area
Alcohol and Tobacco Tax and
Trade Bureau, Treasury.
ACTION: Final rule; Treasury decision.
AGENCY:
The Alcohol and Tobacco Tax
and Trade Bureau (TTB) establishes the
approximately 690-square mile ‘‘Upper
Hiwassee Highlands’’ viticultural area
in Cherokee and Clay Counties, North
Carolina, and Towns, Union, and
Fannin Counties, Georgia. The
viticultural area does not lie within or
contain any other established
SUMMARY:
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41891
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 August
18, 2014.
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 (Revised),
dated December 10, 2013, to the TTB
Administrator to perform the functions
and duties in the administration and
enforcement of this law.
Part 4 of the TTB regulations (27 CFR
part 4) authorizes the establishment of
definitive viticultural areas and the use
of their names as appellations of origin
on wine labels and in wine
advertisements. Part 9 of the TTB
regulations (27 CFR part 9) 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
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Federal Register / Vol. 79, No. 138 / Friday, July 18, 2014 / Rules and Regulations
expand their plantings by an additional
75.5 acres within the next 5 years. Five
wineries were operating within the
proposed AVA at the time the petition
was submitted. According to the
petition, the distinguishing features of
the proposed Upper Hiwassee
Highlands AVA include topography,
temperature, and soils.
Commerce. After the comment period
closed, TTB received a comment by
mail from Senator Johnny Isakson of
Georgia, expressing support for the
proposed AVA. The Senator’s comment
was added to the rulemaking docket.
TTB received no comments opposing
the Upper Hiwassee Highlands AVA, as
proposed.
Requirements
Section 4.25(e)(2) of the TTB
regulations 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 the
standards for petitions for the
establishment 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,
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.
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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.
Notice of Proposed Rulemaking and
Comments Received
TTB published Notice No. 139 in the
Federal Register on July 12, 2013 (78 FR
41891), proposing to establish the Upper
Hiwassee Highlands AVA. In the
document, TTB summarized the
evidence from the petition regarding the
name, boundary, and distinguishing
features for the proposed AVA. The
distinguishing features of the proposed
AVA include topography, temperature,
and soils. The document also compared
the distinguishing features of the
proposed AVA to the surrounding areas.
For a description of the evidence
relating to the name, boundary, and
distinguishing features of the proposed
AVA, and for a comparison of the
distinguishing features of the proposed
AVA to the surrounding areas, see
Notice No. 139.
In Notice No. 139, TTB solicited
comments on the accuracy of the name,
boundary, climatic, and other required
information submitted in support of the
petition. The comment period closed on
September 10, 2013.
In response to Notice No. 139, TTB
received a total of 37 comments, all of
which supported the establishment of
the Upper Hiwassee Highlands AVA.
Among the commenters were the Clay
County (NC) Chamber of Commerce; the
Clay County Travel and Tourism Board
of Directors; the Clay County Economic
Development Commission; the Cherokee
County (NC) Director of Economic
Development; the Cherokee County
Board of Commissioners; the Cherokee
County Tourism Development
Authority; the Cherokee County
Chamber of Commerce; the Agricultural
Extension Agent for Cherokee County;
the Director of Economic Development
for Tri-County Community College in
Murphy, North Carolina; Southern
Appalachian Family Farms, which
promotes local and alternative
sustainable markets for agricultural
products; the Director of Fermentation
Sciences at Appalachian State
University; the Georgia Department of
Agriculture; the Tourism Division of the
Georgia Department of Economic
Development; the Towns County (GA)
Chamber of Commerce; a Commissioner
for Union County (GA); and the
Blairsville–Union County Chamber of
TTB Determination
Upper Hiwassee Highlands Petition
TTB received a petition from Eric
Carlson, owner of Calaboose Cellars, on
behalf of himself and members of the
Vineyard and Winery Operators of the
Upper Hiwassee River Basin group,
proposing the establishment of the
approximately 690-square mile ‘‘Upper
Hiwassee Highlands’’ AVA. The
proposed AVA is located in the
southern Appalachian Mountains
within the upper Hiwassee River basin
in all or portions of Cherokee and Clay
Counties in southwestern North
Carolina and Towns, Union, and Fannin
Counties in northwestern Georgia. The
proposed AVA contains 26
commercially producing vineyards,
growing approximately 54 acres of
French–American hybrids, American
grape varieties, and Vitis vinifera.
According to the petition, present
vineyard operators estimate they will
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After careful review of the petition
and the comments received in response
to Notice No. 139, TTB finds that the
evidence provided by the petitioner
supports the establishment of the
approximately 690-square mile Upper
Hiwassee Highlands AVA. 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
‘‘Upper Hiwassee Highlands’’ AVA in
Cherokee and Clay Counties, North
Carolina, and Towns, Union, and
Fannin Counties, Georgia, effective 30
days from the publication date of this
document.
Boundary Description
See the narrative description of the
boundary of the AVA in the regulatory
text published at the end of this final
rule.
Maps
The petitioner provided the required
maps, and they are listed below in the
regulatory text.
Impact on Current Wine Labels
Part 4 of the TTB regulations prohibits
any label reference on a wine that
indicates or implies an origin other than
the wine’s true place of origin. With the
establishment of this AVA, its name,
‘‘Upper Hiwassee Highlands,’’ will be
recognized as a name of viticultural
significance under § 4.39(i)(3) of the
TTB regulations (27 CFR 4.39(i)(3)). The
text of the regulation clarifies this point.
Once this final rule becomes effective,
wine bottlers using the name ‘‘Upper
Hiwassee Highlands’’ in a brand name,
including a trademark, or in another
label reference as to the origin of the
wine, will have to ensure that the
product is eligible to use the AVA name
as an appellation of origin.
The establishment of the Upper
Hiwassee Highlands AVA will not affect
any existing AVA. The establishment of
the Upper Hiwassee Highlands AVA
will allow vintners to use ‘‘Upper
Hiwassee Highlands’’ as an appellation
of origin for wines made from grapes
grown within the Upper Hiwassee
Highlands AVA, if the wines meet the
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Federal Register / Vol. 79, No. 138 / Friday, July 18, 2014 / Rules and Regulations
eligibility requirements for the
appellation.
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
§ 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
§ 4.39(i)(2) of the TTB regulations (27
CFR 4.39(i)(2)) for details.
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 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.
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The Regulatory Amendment
For the reasons discussed in the
preamble, TTB amends title 27, chapter
I, part 9, Code of Federal Regulations, as
follows:
PART 9—AMERICAN VITICULTURAL
AREAS
1. The authority citation for part 9
continues to read as follows:
■
Authority: 27 U.S.C. 205.
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Subpart C—Approved American
Viticultural Areas
2. Subpart C is amended by adding
§ 9.234 to read as follows:
■
§ 9.234
Upper Hiwassee Highlands.
(a) Name. The name of the viticultural
area described in this section is ‘‘Upper
Hiwassee Highlands’’. For purposes of
part 4 of this chapter, ‘‘Upper Hiwassee
Highlands’’ is a term of viticultural
significance.
(b) Approved maps. The 24 United
States Geological Survey (USGS)
1:24,000 scale topographic maps used to
determine the boundary of the Upper
Hiwassee Highlands viticultural area are
titled:
(1) Unaka, NC/TN, 1957; photorevised
1978;
(2) McDaniel Bald, NC/TN, 1957;
photoinspected 1976;
(3) Marble, NC, 1938; photorevised
1990;
(4) Andrews, NC, 1938; photorevised
1990;
(5) Topton, NC, 1957; photoinspected
1976;
(6) Peachtree, NC, 1937; photorevised
1973;
(7) Hayesville, NC, 1966; photorevised
1978; photoinspected 1987;
(8) Shooting Creek, NC, 1957;
photorevised 1990;
(9) Rainbow Springs, NC, 1957;
photorevised 1978;
(10) Macedonia, GA/NC, 1988;
(11) Hightower Bald, GA/NC, 1988;
(12) Tray Mountain, GA, 1957;
photorevised 1985;
(13) Jacks Gap, GA, 1988;
(14) Hiawassee, GA/NC, 1988;
(15) Blairsville, GA/NC, 1988;
(16) Cowrock, GA, 1988;
(17) Coosa Bald, GA, 1988;
(18) Neels Gap, GA, 1988;
(19) Mulky Gap, GA, 1965;
(20) Wilscot, GA, 1947;
(21) Nottely Dam, GA/NC, 1988;
(22) Culberson, NC/GA, 1988;
(23) Persimmon Creek, NC, 1957;
photorevised 1978; and
(24) Isabella, TN/NC, 1957;
photorevised 1978.
(c) Boundary. The Upper Hiwassee
Highlands viticultural area is located in
Cherokee and Clay Counties, North
Carolina, and Towns, Union, and
Fannin Counties, Georgia. The boundary
of the Upper Hiwassee Highlands
viticultural area is as described below:
(1) The beginning point is in Cherokee
County, North Carolina, on the Unaka
map at the intersection of the
northwestern end of the Hiwassee Dam
and an unnamed light-duty road known
locally as Hiwassee Dam Access Road.
(2) From the beginning point, proceed
northwesterly on Hiwassee Dam Access
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41893
Road approximately 4.2 miles to the
road’s intersection with an unnamed
light-duty road known locally as Joe
Brown Highway; then
(3) Proceed northeasterly on Joe
Brown Highway approximately 1.4
miles to the highway’s intersection with
an unnamed light-duty road known
locally as Burrell Mountain Road; then
(4) Proceed east-northeasterly along a
straight line (drawn from the
intersection of Joe Brown Highway and
Burrell Mountain Road to the peak of
Bird Knob) to the point where the line
intersects the 2,400-foot elevation line
west of Bird Knob; then
(5) Proceed initially southerly and
then easterly along the meandering
2,400-foot elevation line and continue to
follow the elevation line in an overall
clockwise direction through Cherokee
and Clay Counties, North Carolina, and
then Towns and Union Counties,
Georgia, crossing over as necessary the
McDaniel Bald, Marble, Andrews,
Topton, Peachtree, Hayesville, Shooting
Creek, Rainbow Springs, Macedonia,
Hightower Bald, Tray Mountain, Jacks
Gap, Hiwassee, Blairsville, Cowrock,
Coosa Bald, Neels Gap, and Mulky Gap
maps and ending on the Wilscot map,
at the intersection of the 2,400-foot
elevation line with the Union–Fannin
County boundary line at Skeenah Gap;
then
(6) Proceed northerly along the
meandering Union–Fannin County
boundary line, crossing over the Mulky
Gap and Nottely Dam maps and onto the
Culberson map, to the summit of High
Top Mountain; then
(7) Proceed northwesterly in a straight
line approximately one mile to the
intersection of two unnamed light-duty
roads known locally as Cutcane Road
and Mt. Herman Road, near Mt. Herman
Church; then
(8) Proceed northwesterly on Mt.
Herman Road approximately one mile to
the road’s intersection with State Spur
60 (Murphy Highway); then
(9) Proceed southwesterly on State
Spur 60 (Murphy Highway)
approximately 2 miles to the road’s
intersection with an unnamed light-duty
road known locally as Knollwood Road;
then
(10) Proceed northwesterly in a
straight line approximately 1.75 miles to
the summit of Watson Mountain; then
(11) Proceed northeasterly in a
straight line approximately 2.15 miles,
crossing onto the Persimmon Creek
map, to the line’s intersection with the
wagon and jeep track at the
southernmost summit of Vance
Mountain in Cherokee County, North
Carolina; then
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(12) Proceed north-northwesterly
along the wagon and jeep track
approximately 0.8 mile to the track’s
intersection with a marked foot trail
near the 2,200-foot elevation line on the
northern spur of Vance Mountain; then
(13) Proceed north-northwesterly
along the foot trail approximately 0.5
mile to the trail’s intersection with an
unnamed road known locally as Wallace
Road, and then continue northnorthwesterly along Wallace Road
approximately 0.4 mile to the road’s
intersection with U.S. Highway 64 near
Hothouse; then
(14) Proceed westerly along U.S.
Highway 64 approximately one mile to
the highway’s intersection with a
marked northerly foot trail at Nealy Gap;
then
(15) Proceed northerly along the
marked foot trail, briefly crossing to and
from the Isabella map, to the foot trail’s
intersection with an unnamed
unimproved road, and then continue
northerly on the unimproved road to its
intersection with a second unnamed
unimproved road known locally as
Charles Laney Road, a total approximate
distance of 0.75 mile; then
(16) Proceed northwesterly on the
unnamed unimproved road known
locally as Charles Laney Road, crossing
onto the Isabella map, to the road’s end,
and then continue north-northwesterly
on a marked foot trail to the trail’s
intersection with a wagon and jeep track
at Wolfpen Gap, a total approximate
distance of one mile; then
(17) Proceed easterly and then
northeasterly along the wagon and jeep
trail, crossing onto the Persimmon Creek
map, to the 3,284-foot benchmark (MLB
1514) on Payne Mountain, then
continue northeasterly on the wagon
and jeep trail (which is partially marked
as a foot trail) along the ridge line of
Payne Mountain to the peak of Harris
Top, then continue north-northeasterly
on the wagon and jeep trail to the peak
of Beaver Top, a total approximate
distance of 2.75 miles; then
(18) Proceed northeasterly
approximately 0.25 mile on the wagon
and jeep trail to the point where the trail
turns sharply to the southeast at a
summit within the 2,480-foot elevation
line on the western shoulder of Indian
Grave Gap; then
(19) Proceed north in a straight line
approximately 0.95 mile to the summit
of Candy Mountain, and then continue
north-northwest in a straight line
approximately 0.45 mile to the line’s
intersection with an unnamed light-duty
road known locally as Candy Mountain
Road; then
(20) Proceed east-northeasterly on
Candy Mountain Road approximately
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0.8 mile to the 1,740-foot benchmark
(BM HR 116); then
(21) Proceed northerly in a straight
line approximately 1.2 miles to the
southernmost peak of Ghormley
Mountain (within the 2,440-foot
elevation line); then
(22) Proceed north-northeast in a
straight line approximately 1.3 miles to
the intersection of an unnamed lightduty road known locally as Lower Bear
Paw Road and an unnamed unimproved
road just south of Reids Chapel (the
chapel is shown along the southern edge
of the Unaka map); then
(23) Proceed northerly on Lower Bear
Paw Road approximately 0.35 mile,
crossing onto the Unaka map, to the
road’s intersection with an unnamed
light-duty road known locally as
Hiwassee Dam Access Road; then
(24) Proceed easterly and then
northerly along Hiwassee Dam Access
Road approximately 2.9 miles, returning
to the beginning point at the
northwestern end of Hiwassee Dam.
Signed: April 15, 2014.
John J. Manfreda,
Administrator.
Approved: May 7, 2014.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and
Tariff Policy).
[FR Doc. 2014–16919 Filed 7–17–14; 8:45 am]
BILLING CODE 4810–31–P
DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade
Bureau
27 CFR Part 9
[Docket No. TTB–2013–0007; T.D. TTB–121;
Ref: Notice No. 138]
RIN 1513–AC01
Establishment of the Malibu Coast
Viticultural Area
Alcohol and Tobacco Tax and
Trade Bureau, Treasury.
ACTION: Final rule; Treasury decision.
AGENCY:
The Alcohol and Tobacco Tax
and Trade Bureau (TTB) establishes the
‘‘Malibu Coast’’ viticultural area, which
covers approximately 44,590 acres in
portions of Los Angeles County and
Ventura County, California. The
viticultural area includes the
established Saddle Rock–Malibu and
Malibu–Newton Canyon viticultural
areas. 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.
SUMMARY:
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This final rule is effective August
18, 2014.
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:
DATES:
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 (Revised),
dated December 10, 2013, to the TTB
Administrator to perform the functions
and duties in the administration and
enforcement of this law.
Part 4 of the TTB regulations (27 CFR
part 4) authorizes the establishment of
definitive viticultural areas and the use
of their names as appellations of origin
on wine labels and in wine
advertisements. Part 9 of the TTB
regulations (27 CFR part 9) 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 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
E:\FR\FM\18JYR1.SGM
18JYR1
]]>Agencies
[Federal Register Volume 79, Number 138 (Friday, July 18, 2014)]
[Rules and Regulations]
[Pages 41891-41894]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-16919]
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DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade Bureau
27 CFR Part 9
[Docket No. TTB-2013-0008; T.D. TTB-120; Ref: Notice No. 139]
RIN 1513-AC02
Establishment of the Upper Hiwassee Highlands Viticultural Area
AGENCY: Alcohol and Tobacco Tax and Trade Bureau, Treasury.
ACTION: Final rule; Treasury decision.
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SUMMARY: The Alcohol and Tobacco Tax and Trade Bureau (TTB) establishes
the approximately 690-square mile ``Upper Hiwassee Highlands''
viticultural area in Cherokee and Clay Counties, North Carolina, and
Towns, Union, and Fannin Counties, Georgia. The viticultural area does
not lie within or contain any other established viticultural area. TTB
designates viticultural areas to allow vintners to better describe the
origin of their wines and to allow consumers to better identify wines
they may purchase.
DATES: This final rule is effective August 18, 2014.
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 (Revised), dated
December 10, 2013, to the TTB Administrator to perform the functions
and duties in the administration and enforcement of this law.
Part 4 of the TTB regulations (27 CFR part 4) authorizes the
establishment of definitive viticultural areas and the use of their
names as appellations of origin on wine labels and in wine
advertisements. Part 9 of the TTB regulations (27 CFR part 9) 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
[[Page 41892]]
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 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 the standards for
petitions for the establishment 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, 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.
Upper Hiwassee Highlands Petition
TTB received a petition from Eric Carlson, owner of Calaboose
Cellars, on behalf of himself and members of the Vineyard and Winery
Operators of the Upper Hiwassee River Basin group, proposing the
establishment of the approximately 690-square mile ``Upper Hiwassee
Highlands'' AVA. The proposed AVA is located in the southern
Appalachian Mountains within the upper Hiwassee River basin in all or
portions of Cherokee and Clay Counties in southwestern North Carolina
and Towns, Union, and Fannin Counties in northwestern Georgia. The
proposed AVA contains 26 commercially producing vineyards, growing
approximately 54 acres of French-American hybrids, American grape
varieties, and Vitis vinifera. According to the petition, present
vineyard operators estimate they will expand their plantings by an
additional 75.5 acres within the next 5 years. Five wineries were
operating within the proposed AVA at the time the petition was
submitted. According to the petition, the distinguishing features of
the proposed Upper Hiwassee Highlands AVA include topography,
temperature, and soils.
Notice of Proposed Rulemaking and Comments Received
TTB published Notice No. 139 in the Federal Register on July 12,
2013 (78 FR 41891), proposing to establish the Upper Hiwassee Highlands
AVA. In the document, TTB summarized the evidence from the petition
regarding the name, boundary, and distinguishing features for the
proposed AVA. The distinguishing features of the proposed AVA include
topography, temperature, and soils. The document also compared the
distinguishing features of the proposed AVA to the surrounding areas.
For a description of the evidence relating to the name, boundary, and
distinguishing features of the proposed AVA, and for a comparison of
the distinguishing features of the proposed AVA to the surrounding
areas, see Notice No. 139.
In Notice No. 139, TTB solicited comments on the accuracy of the
name, boundary, climatic, and other required information submitted in
support of the petition. The comment period closed on September 10,
2013.
In response to Notice No. 139, TTB received a total of 37 comments,
all of which supported the establishment of the Upper Hiwassee
Highlands AVA. Among the commenters were the Clay County (NC) Chamber
of Commerce; the Clay County Travel and Tourism Board of Directors; the
Clay County Economic Development Commission; the Cherokee County (NC)
Director of Economic Development; the Cherokee County Board of
Commissioners; the Cherokee County Tourism Development Authority; the
Cherokee County Chamber of Commerce; the Agricultural Extension Agent
for Cherokee County; the Director of Economic Development for Tri-
County Community College in Murphy, North Carolina; Southern
Appalachian Family Farms, which promotes local and alternative
sustainable markets for agricultural products; the Director of
Fermentation Sciences at Appalachian State University; the Georgia
Department of Agriculture; the Tourism Division of the Georgia
Department of Economic Development; the Towns County (GA) Chamber of
Commerce; a Commissioner for Union County (GA); and the Blairsville-
Union County Chamber of Commerce. After the comment period closed, TTB
received a comment by mail from Senator Johnny Isakson of Georgia,
expressing support for the proposed AVA. The Senator's comment was
added to the rulemaking docket. TTB received no comments opposing the
Upper Hiwassee Highlands AVA, as proposed.
TTB Determination
After careful review of the petition and the comments received in
response to Notice No. 139, TTB finds that the evidence provided by the
petitioner supports the establishment of the approximately 690-square
mile Upper Hiwassee Highlands AVA. 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 ``Upper Hiwassee
Highlands'' AVA in Cherokee and Clay Counties, North Carolina, and
Towns, Union, and Fannin Counties, Georgia, effective 30 days from the
publication date of this document.
Boundary Description
See the narrative description of the boundary of the AVA in the
regulatory text published at the end of this final rule.
Maps
The petitioner provided the required maps, and they are listed
below in the regulatory text.
Impact on Current Wine Labels
Part 4 of the TTB regulations prohibits any label reference on a
wine that indicates or implies an origin other than the wine's true
place of origin. With the establishment of this AVA, its name, ``Upper
Hiwassee Highlands,'' 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 regulation clarifies this point. Once this
final rule becomes effective, wine bottlers using the name ``Upper
Hiwassee Highlands'' in a brand name, including a trademark, or in
another label reference as to the origin of the wine, will have to
ensure that the product is eligible to use the AVA name as an
appellation of origin.
The establishment of the Upper Hiwassee Highlands AVA will not
affect any existing AVA. The establishment of the Upper Hiwassee
Highlands AVA will allow vintners to use ``Upper Hiwassee Highlands''
as an appellation of origin for wines made from grapes grown within the
Upper Hiwassee Highlands AVA, if the wines meet the
[[Page 41893]]
eligibility requirements for the appellation.
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 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.
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 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. 9.234 to read as follows:
Sec. 9.234 Upper Hiwassee Highlands.
(a) Name. The name of the viticultural area described in this
section is ``Upper Hiwassee Highlands''. For purposes of part 4 of this
chapter, ``Upper Hiwassee Highlands'' is a term of viticultural
significance.
(b) Approved maps. The 24 United States Geological Survey (USGS)
1:24,000 scale topographic maps used to determine the boundary of the
Upper Hiwassee Highlands viticultural area are titled:
(1) Unaka, NC/TN, 1957; photorevised 1978;
(2) McDaniel Bald, NC/TN, 1957; photoinspected 1976;
(3) Marble, NC, 1938; photorevised 1990;
(4) Andrews, NC, 1938; photorevised 1990;
(5) Topton, NC, 1957; photoinspected 1976;
(6) Peachtree, NC, 1937; photorevised 1973;
(7) Hayesville, NC, 1966; photorevised 1978; photoinspected 1987;
(8) Shooting Creek, NC, 1957; photorevised 1990;
(9) Rainbow Springs, NC, 1957; photorevised 1978;
(10) Macedonia, GA/NC, 1988;
(11) Hightower Bald, GA/NC, 1988;
(12) Tray Mountain, GA, 1957; photorevised 1985;
(13) Jacks Gap, GA, 1988;
(14) Hiawassee, GA/NC, 1988;
(15) Blairsville, GA/NC, 1988;
(16) Cowrock, GA, 1988;
(17) Coosa Bald, GA, 1988;
(18) Neels Gap, GA, 1988;
(19) Mulky Gap, GA, 1965;
(20) Wilscot, GA, 1947;
(21) Nottely Dam, GA/NC, 1988;
(22) Culberson, NC/GA, 1988;
(23) Persimmon Creek, NC, 1957; photorevised 1978; and
(24) Isabella, TN/NC, 1957; photorevised 1978.
(c) Boundary. The Upper Hiwassee Highlands viticultural area is
located in Cherokee and Clay Counties, North Carolina, and Towns,
Union, and Fannin Counties, Georgia. The boundary of the Upper Hiwassee
Highlands viticultural area is as described below:
(1) The beginning point is in Cherokee County, North Carolina, on
the Unaka map at the intersection of the northwestern end of the
Hiwassee Dam and an unnamed light-duty road known locally as Hiwassee
Dam Access Road.
(2) From the beginning point, proceed northwesterly on Hiwassee Dam
Access Road approximately 4.2 miles to the road's intersection with an
unnamed light-duty road known locally as Joe Brown Highway; then
(3) Proceed northeasterly on Joe Brown Highway approximately 1.4
miles to the highway's intersection with an unnamed light-duty road
known locally as Burrell Mountain Road; then
(4) Proceed east-northeasterly along a straight line (drawn from
the intersection of Joe Brown Highway and Burrell Mountain Road to the
peak of Bird Knob) to the point where the line intersects the 2,400-
foot elevation line west of Bird Knob; then
(5) Proceed initially southerly and then easterly along the
meandering 2,400-foot elevation line and continue to follow the
elevation line in an overall clockwise direction through Cherokee and
Clay Counties, North Carolina, and then Towns and Union Counties,
Georgia, crossing over as necessary the McDaniel Bald, Marble, Andrews,
Topton, Peachtree, Hayesville, Shooting Creek, Rainbow Springs,
Macedonia, Hightower Bald, Tray Mountain, Jacks Gap, Hiwassee,
Blairsville, Cowrock, Coosa Bald, Neels Gap, and Mulky Gap maps and
ending on the Wilscot map, at the intersection of the 2,400-foot
elevation line with the Union-Fannin County boundary line at Skeenah
Gap; then
(6) Proceed northerly along the meandering Union-Fannin County
boundary line, crossing over the Mulky Gap and Nottely Dam maps and
onto the Culberson map, to the summit of High Top Mountain; then
(7) Proceed northwesterly in a straight line approximately one mile
to the intersection of two unnamed light-duty roads known locally as
Cutcane Road and Mt. Herman Road, near Mt. Herman Church; then
(8) Proceed northwesterly on Mt. Herman Road approximately one mile
to the road's intersection with State Spur 60 (Murphy Highway); then
(9) Proceed southwesterly on State Spur 60 (Murphy Highway)
approximately 2 miles to the road's intersection with an unnamed light-
duty road known locally as Knollwood Road; then
(10) Proceed northwesterly in a straight line approximately 1.75
miles to the summit of Watson Mountain; then
(11) Proceed northeasterly in a straight line approximately 2.15
miles, crossing onto the Persimmon Creek map, to the line's
intersection with the wagon and jeep track at the southernmost summit
of Vance Mountain in Cherokee County, North Carolina; then
[[Page 41894]]
(12) Proceed north-northwesterly along the wagon and jeep track
approximately 0.8 mile to the track's intersection with a marked foot
trail near the 2,200-foot elevation line on the northern spur of Vance
Mountain; then
(13) Proceed north-northwesterly along the foot trail approximately
0.5 mile to the trail's intersection with an unnamed road known locally
as Wallace Road, and then continue north-northwesterly along Wallace
Road approximately 0.4 mile to the road's intersection with U.S.
Highway 64 near Hothouse; then
(14) Proceed westerly along U.S. Highway 64 approximately one mile
to the highway's intersection with a marked northerly foot trail at
Nealy Gap; then
(15) Proceed northerly along the marked foot trail, briefly
crossing to and from the Isabella map, to the foot trail's intersection
with an unnamed unimproved road, and then continue northerly on the
unimproved road to its intersection with a second unnamed unimproved
road known locally as Charles Laney Road, a total approximate distance
of 0.75 mile; then
(16) Proceed northwesterly on the unnamed unimproved road known
locally as Charles Laney Road, crossing onto the Isabella map, to the
road's end, and then continue north-northwesterly on a marked foot
trail to the trail's intersection with a wagon and jeep track at
Wolfpen Gap, a total approximate distance of one mile; then
(17) Proceed easterly and then northeasterly along the wagon and
jeep trail, crossing onto the Persimmon Creek map, to the 3,284-foot
benchmark (MLB 1514) on Payne Mountain, then continue northeasterly on
the wagon and jeep trail (which is partially marked as a foot trail)
along the ridge line of Payne Mountain to the peak of Harris Top, then
continue north-northeasterly on the wagon and jeep trail to the peak of
Beaver Top, a total approximate distance of 2.75 miles; then
(18) Proceed northeasterly approximately 0.25 mile on the wagon and
jeep trail to the point where the trail turns sharply to the southeast
at a summit within the 2,480-foot elevation line on the western
shoulder of Indian Grave Gap; then
(19) Proceed north in a straight line approximately 0.95 mile to
the summit of Candy Mountain, and then continue north-northwest in a
straight line approximately 0.45 mile to the line's intersection with
an unnamed light-duty road known locally as Candy Mountain Road; then
(20) Proceed east-northeasterly on Candy Mountain Road
approximately 0.8 mile to the 1,740-foot benchmark (BM HR 116); then
(21) Proceed northerly in a straight line approximately 1.2 miles
to the southernmost peak of Ghormley Mountain (within the 2,440-foot
elevation line); then
(22) Proceed north-northeast in a straight line approximately 1.3
miles to the intersection of an unnamed light-duty road known locally
as Lower Bear Paw Road and an unnamed unimproved road just south of
Reids Chapel (the chapel is shown along the southern edge of the Unaka
map); then
(23) Proceed northerly on Lower Bear Paw Road approximately 0.35
mile, crossing onto the Unaka map, to the road's intersection with an
unnamed light-duty road known locally as Hiwassee Dam Access Road; then
(24) Proceed easterly and then northerly along Hiwassee Dam Access
Road approximately 2.9 miles, returning to the beginning point at the
northwestern end of Hiwassee Dam.
Signed: April 15, 2014.
John J. Manfreda,
Administrator.
Approved: May 7, 2014.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and Tariff Policy).
[FR Doc. 2014-16919 Filed 7-17-14; 8:45 am]
BILLING CODE 4810-31-P
