Establishment of the Upper Cumberland Viticultural Area, 42363-42366 [2024-10626]

Download as PDF Federal Register / Vol. 89, No. 95 / Wednesday, May 15, 2024 / Rules and Regulations these final regulations are not significant and are not subject to review under section 6(b) of Executive Order 12866, as amended. II. Regulatory Flexibility Act Pursuant to the Regulatory Flexibility Act (5 U.S.C. chapter 6), it is hereby certified that these final regulations will not have a significant economic impact on a substantial number of small entities. Accordingly, a regulatory flexibility analysis is not required. These regulations affect all individuals who prepare or assist in preparing all or substantially all of a tax return or claim for refund for compensation. Only individuals, not businesses, can have a PTIN. Thus, the economic impact of these regulations on any small entity generally will be a result of an individual tax return preparer who is required to have a PTIN owning a small business or a small business otherwise employing an individual tax return preparer who is required to have a PTIN. The Treasury Department and the IRS estimate that approximately 847,555 individuals will apply annually for an initial or renewal PTIN. Although these regulations will likely affect a substantial number of small entities, the economic impact on those entities is not significant. These regulations establish an $11 fee per application or application for renewal (plus the fee payable directly to the third-party contractor), which is a reduction from the previously established fee, and will therefore not have a significant economic impact on small entities. Accordingly, a regulatory flexibility analysis is not required. lotter on DSK11XQN23PROD with RULES1 III. Unfunded Mandates Reform Act Section 202 of the Unfunded Mandates Reform Act of 1995 (UMRA) requires that agencies assess anticipated costs and benefits and take certain other actions before issuing a final rule that includes any Federal mandate that may result in expenditures in any one year by a State, local, or Tribal government, in the aggregate, or by the private sector, of $100 million in 1995 dollars, updated annually for inflation. These final regulations do not include any Federal mandate that may result in expenditures by State, local, or Tribal governments, or by the private sector in excess of that threshold. IV. Executive Order 13132: Federalism Executive Order 13132 (Federalism) prohibits an agency from publishing any rule that has federalism implications if the rule either imposes substantial, direct compliance costs on State and local governments, and is not required VerDate Sep<11>2014 15:57 May 14, 2024 Jkt 262001 42363 by statute, or preempts State law, unless the agency meets the consultation and funding requirements of section 6 of the Executive order. These final regulations do not have federalism implications and do not impose substantial direct compliance costs on State and local governments or preempt State law within the meaning of the Executive order. DEPARTMENT OF THE TREASURY V. Submission to Small Business Administration Establishment of the Upper Cumberland Viticultural Area Pursuant to section 7805(f) of the Code, the notice of proposed rulemaking and the interim final rule that preceded these final regulations was submitted to the Chief Counsel for the Office of Advocacy of the Small Business Administration for comment on its impact on small business. No comments were received on the proposed regulations or the interim final rule. VI. Congressional Review Act Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), the Office of Information and Regulatory Affairs designated this rule as not a major rule, as defined by 5 U.S.C. 804(2). Drafting Information Alcohol and Tobacco Tax and Trade Bureau 27 CFR Part 9 [Docket No. TTB–2023–0006; T.D. TTB–194; Re: Notice No. 224] RIN 1513–AD02 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 2,186,689-acre ‘‘Upper Cumberland’’ American viticultural area (AVA) in Middle Tennessee. The Upper Cumberland viticultural area is not located within, nor does it contain, any other established viticultural area. TTB designates viticultural areas to allow vintners to better describe the origin of their wines and to allow consumers to better identify wines they may purchase. SUMMARY: This final rule is effective June 14, 2024. 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: The principal author of these regulations is Jamie Song, Office of the Associate Chief Counsel (Procedure and Administration). Other personnel from the Treasury Department and the IRS participated in the development of the regulations. Background on Viticultural Areas List of Subjects in 26 CFR Part 300 TTB Authority Estate taxes, Excise taxes, Fees, Gift taxes, Income taxes, Reporting and recordkeeping requirements. 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). In addition, the Secretary of the Treasury has delegated certain administrative and enforcement authorities to TTB through Treasury Order 120–01. Part 4 of the TTB regulations (27 CFR part 4) authorizes TTB to establish definitive viticultural areas and regulate PART 300—USER FEES Accordingly, the interim rule amending 26 CFR part 300, which was published at 88 FR 68456 on October 4, 2023, is adopted as final without change. ■ Douglas W. O’Donnell, Deputy Commissioner. Approved: April 28, 2024. Aviva R. Aron-Dine, Acting Assistant Secretary of the Treasury (Tax Policy). [FR Doc. 2024–10631 Filed 5–14–24; 8:45 am] BILLING CODE 4830–01–P PO 00000 Frm 00023 Fmt 4700 Sfmt 4700 E:\FR\FM\15MYR1.SGM 15MYR1 42364 Federal Register / Vol. 89, No. 95 / Wednesday, May 15, 2024 / Rules and Regulations 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, once approved, a name and a delineated boundary codified in part 9 of the regulations. These designations allow vintners and consumers to attribute a given quality, reputation, or other characteristic of a wine made from grapes grown in an area to the wine’s geographic origin. The establishment of AVAs allows vintners to describe more accurately the origin of their wines to consumers and helps consumers to identify wines they may purchase. Establishment of an AVA is neither an approval nor an endorsement by TTB of the wine produced in that area. lotter on DSK11XQN23PROD with RULES1 Requirements Section 4.25(e)(2) of the TTB regulations (27 CFR 4.25(e)(2)) outlines the procedure for proposing an AVA and allows any interested party to petition TTB to establish a grapegrowing region as an AVA. Section 9.12 of the TTB regulations (27 CFR 9.12) prescribes standards for petitions to establish or modify AVAs. Petitions to establish an AVA must include the following: • Evidence that the area within the proposed AVA boundary is nationally or locally known by the AVA name specified in the petition; • An explanation of the basis for defining the boundary of the proposed AVA; • A narrative description of the features of the proposed AVA affecting viticulture, such as climate, geology, soils, physical features, and elevation, that make the proposed AVA distinctive and distinguish it from adjacent areas outside the proposed AVA; • 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. VerDate Sep<11>2014 15:57 May 14, 2024 Jkt 262001 Upper Cumberland Petition TTB received a petition from the Appalachian Region Wine Producers Association proposing the establishment of the ‘‘Upper Cumberland’’ AVA in Middle Tennessee. The proposed Upper Cumberland AVA covers approximately 2,186,689 acres and is not located within any other AVA. There are 55 commercially producing vineyards covering a total of approximately 71 acres within the proposed AVA, as well as nine wineries. According to the petition, the distinguishing features of the proposed AVA are its geology and elevation, soils, and climate. The proposed Upper Cumberland AVA covers portions of three distinct geographical regions: the western portion of the Cumberland Plateau, the Eastern Highland Ridge, and the eastern portion of the Outer Central Basin. The eastern region of the proposed AVA is located on the western portion of the Cumberland Plateau and was formed from layers of sedimentary rocks that were deposited when an ocean covered the area. The average elevations in the eastern region of the proposed AVA range from 1,500 to 1,800 feet. The middle region of the proposed AVA is located on a cuesta known as the Eastern Highland Rim. This region of the proposed AVA is comprised mainly of various limestones, chert, and shale and contains elevations ranging from 600 to 1,000 feet. The western region of the proposed Upper Cumberland AVA is mostly an escarpment located on the Outer Central Basin of Middle Tennessee with underlying rocks of limestone, chert, and shale. The petition did not include a range of elevations for the western region of the proposed AVA but noted that the elevations are higher than the average elevations of the Inner Central Basin region located farther to the west. The petition notes that the uplifted elevations of the proposed AVA allow more direct and concentrated sunlight— particularly UV light—into the vineyards than in vineyards at lower elevations. According to the petition, for every 1,000 feet of elevation, the level of UV light increases between 10 and 20 percent. As a result of greater levels of UV rays, grapes develop thicker skins which increases the color concentration and tannins in the resulting wines. According to the petition, regions to the north and south of the proposed AVA contain the same geological features found within the proposed AVA, but the petition did not provide information on elevations within these regions. The region east of the proposed AVA is the Valley and Ridge Province PO 00000 Frm 00024 Fmt 4700 Sfmt 4700 of Tennessee, where the sediment and rock was folded and faulted rather than being uplifted into a plateau. Elevations range from 1,100 to 1,500 feet in the ridges and from 700 to 1,000 feet in the valleys. To the west of the proposed AVA is the Inner Central Basin where elevations are 300 to 400 feet lower than elevations within the adjacent portion of the proposed AVA. The petition states that there are three types of soil orders in the proposed AVA. It defines Ultisols soils as ‘‘strongly leached, acid forest soils with relatively low fertility.’’ Inceptisols soils ‘‘exhibit minimal horizon development’’ and ‘‘lack features characteristic of other soil orders.’’ Alfisols soils are moderately-leached soils with relatively high native fertility. The petition notes the eastern portion of the proposed AVA contains Ultisols and Inceptisols soils that are moderately deep, dominantly well-drained, and strongly acidic. These soils have an udic soil moisture regime, meaning that water moves down through the soil at some time in most years, and the amount of soil moisture plus rainfall is approximately equal to or exceeds the amount of evapotranspiration. The middle portion of the proposed AVA contains Ultisols, Inceptisols, and Alfisols soils that are moderately-to-very deep, moderately well-drained, and loamy or clayey. These soils are in the udic soil moisture regime and are also predominantly in the thermic soil temperature regime, meaning that soil temperatures at a depth of 20 inches range from 59 to 72 degrees Fahrenheit. The western portion of the proposed AVA contains Ultisols, Inceptisols, and Alfisols soil orders. Soils in this portion have a thermic soil temperature regime and udic soil moisture regime, similar to the soils in the middle portion of the proposed AVA. The petition notes that the acidic and well-drained soils of the proposed Upper Cumberland AVA allow grapes to retain acidity as they ripen, resulting in ‘‘brighter, more acidic finished wines.’’ According to the petition, to the north and south of the proposed AVA, the soils are similar to the soils within the proposed AVA. Soils east of the proposed AVA are almost exclusively Ultisols soils that generally have a thermic soil temperature regime and an udic soil moisture regime. Soils west of the proposed AVA include Mollisols soils, which are found in grassland ecosystems and are not found in the proposed AVA. Additionally, the region west of the proposed AVA does not contain as many Ultisols soils as the proposed AVA. E:\FR\FM\15MYR1.SGM 15MYR1 Federal Register / Vol. 89, No. 95 / Wednesday, May 15, 2024 / Rules and Regulations The petition provided climate data, specifically annual minimum and maximum temperatures, growing season mean temperatures, growing season length, growing degree days 1 (GDDs), USDA plant hardiness zones, and annual precipitation amounts for the proposed Upper Cumberland AVA and the surrounding regions. According to the petition, the proposed AVA has a climate that is suitable for growing a wide variety of wine grapes, including vinifera, hybrid, native, and muscadine varietals currently growing within the proposed AVA. The proposed AVA has an average growing season length of 212 days, a mean growing degree temperature of 67.5 degrees Fahrenheit, and an average annual precipitation amount of 50.02 inches. The area south of the proposed AVA has a generally warmer climate, longer growing season, and higher annual precipitation amount than the proposed AVA. In the area east of the proposed AVA, the mean growing season temperature is similar to the proposed AVA, but the growing season is slightly shorter, and the annual precipitation amount is slightly higher. The area west of the proposed AVA has a shorter mean growing season temperature and a higher mean annual precipitation amount than the proposed AVA. Notice of Proposed Rulemaking and Comments Received lotter on DSK11XQN23PROD with RULES1 TTB published Notice No. 224 in the Federal Register on August 29, 2023 (88 FR 59482), proposing to establish the Upper Cumberland AVA. In the notice, TTB summarized the evidence from the petition regarding the name, boundary, and distinguishing features for the proposed AVA. The notice also included information from the petition comparing the distinguishing features of the proposed AVA to the surrounding areas. For a detailed description of the evidence relating to the name, boundary, and distinguishing features of the proposed AVA, and for a detailed comparison of the distinguishing features of the proposed AVA to the surrounding areas, see Notice No. 224. In Notice No. 224, TTB solicited 1 See Albert J. Winkler, General Viticulture (Berkeley: University of California Press, 1974), pages 61–64. In the Winkler climate classification system, annual heat accumulation during the growing season, measured in annual Growing Degree Days (GDDs), defines climatic regions. One GDD accumulates for each degree Fahrenheit that a day’s mean temperature is above 50 degrees F, the minimum temperature required for grapevine growth. The Winkler scale regions are as follows: Region Ia: 1,500–2,000 GDDs; Region Ib: 2,000– 2,500 GDDs; Region II: 2,500–3,000 GDDs; Region III: 3,000–3,500 GDDs; Region IV: 3,500–4,000 GDDs; Region V: 4,000–4,900 GDDs. VerDate Sep<11>2014 15:57 May 14, 2024 Jkt 262001 comments on the accuracy of the name, boundary, and other required information submitted in support of the petition. The comment period for Notice No. 224 closed on October 30, 2023. In response to Notice No. 224, TTB received four comments. The commenters were Mountain Valley Vineyards, Inc, the Tennessee Wine and Grape Board, the Tennessee Farm Winegrowers Alliance, and the Upper Cumberland Tourism Association. All the comments supported the establishment of the proposed Upper Cumberland AVA, suggesting, for example, that the AVA designation would support the growth of the wine and grape industries and make the area appealing for tourism, new businesses and jobs, and new residents. The comments did not raise any new issues concerning the proposed AVA. TTB did not receive any comments opposing the establishment of the Upper Cumberland AVA. TTB Determination After careful review of the petition and the comments received in response to Notice No. 224, TTB finds that the evidence provided by the petitioner supports the establishment of the Upper Cumberland AVA. Accordingly, under the authority of the FAA Act, section 1111(d) of the Homeland Security Act of 2002, and parts 4 and 9 of the TTB regulations, TTB establishes the ‘‘Upper Cumberland’’ AVA in Middle Tennessee, effective 30 days from the publication date of this document. Boundary Description See the narrative description of the boundary of the Upper Cumberland AVA in the regulatory text published at the end of this final rule. Maps The petitioner provided the required maps, and they are listed below in the regulatory text. The Upper Cumberland AVA boundary may also be viewed on the AVA Map Explorer on the TTB website, at https://www.ttb.gov/wine/ ava-map-explorer. Impact on Current Wine Labels Part 4 of the TTB regulations prohibits any label reference on a wine that indicates or implies an origin other than the wine’s true place of origin. For a wine to be labeled with an AVA name or with a brand name that includes an AVA name, at least 85 percent of the wine must be derived from grapes grown within the area represented by that name, and the wine must meet the other conditions listed in 27 CFR 4.25(e)(3). If the wine is not eligible for PO 00000 Frm 00025 Fmt 4700 Sfmt 4700 42365 labeling with an AVA name and that name appears in the brand name, then the label is not in compliance and the bottler must change the brand name and obtain approval of a new label. Similarly, if the AVA name appears in another reference on the label in a misleading manner, the bottler would have to obtain approval of a new label. Different rules apply if a wine has a brand name containing an AVA name that was used as a brand name on a label approved before July 7, 1986. See 27 CFR 4.39(i)(2) for details. With the establishment of the Upper Cumberland AVA, its name, ‘‘Upper Cumberland,’’ 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 regulations clarifies this point. Consequently, wine bottlers using the name ‘‘Upper Cumberland’’ 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 Cumberland AVA will not affect any existing AVA. The establishment of the Upper Cumberland AVA will allow vintners to use ‘‘Upper Cumberland’’ as an appellation of origin for wines made primarily from grapes grown within the Upper Cumberland AVA if the wines meet the eligibility requirements for the appellation. Regulatory Flexibility Act TTB certifies that this regulation will not have a significant economic impact on a substantial number of small entities. The regulation imposes no new reporting, recordkeeping, or other administrative requirement. Any benefit derived from the use of an AVA name would be the result of a proprietor’s efforts and consumer acceptance of wines from that area. Therefore, no regulatory flexibility analysis is required. Executive Order 12866 It has been determined that this final rule is not a significant regulatory action as defined by Executive Order 12866, as amended. Therefore, no regulatory assessment is required. Drafting Information Vonzella C. Johnson of the Regulations and Rulings Division drafted this final rule. List of Subjects in 27 CFR Part 9 Wine. E:\FR\FM\15MYR1.SGM 15MYR1 42366 Federal Register / Vol. 89, No. 95 / Wednesday, May 15, 2024 / Rules and Regulations 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. Subpart C—Approved American Viticultural Areas ■ 2. Add § 9.294 to read as follows: lotter on DSK11XQN23PROD with RULES1 § 9.294 Upper Cumberland. (a) Name. The name of the viticultural area described in this section is ‘‘Upper Cumberland’’. For purposes of part 4 of this chapter, ‘‘Upper Cumberland’’ is a term of viticultural significance. (b) Approved maps. The 8 United States Geological Survey (USGS) 1:100,000 scale topographic maps used to determine the boundary of the Upper Cumberland viticultural area are: (1) Bowling Green, 1985; (2) Tompkinsville, 1985; photoinspected 1992; (3) Corbin, 1981; (4) Nashville, 1984; (5) Cookeville, 1982; (6) Oak Ridge, 1979; (7) McMinnville, 1981; and (8) Watts Bar Lake, 1981. (c) Boundary. The Upper Cumberland viticultural area is located in Cumberland, Fentress, Macon, Overton, Putnam, Smith, Warren, and White Counties, in Tennessee. The boundary of the viticultural area is described as follows: (1) The beginning point is on the Bowling Green map at the intersection of the shared Macon–Sumner County line and the shared Kentucky– Tennessee State line. From the beginning point, proceed south along the shared Macon–Sumner County line, crossing onto the Nashville map and continuing along the shared Macon– Sumner County line to its intersection with the Trousdale County line; then (2) Proceed east, then southeast, then east along the shared Trousdale–Macon County line, crossing onto the Cookeville map and continuing east along the shared Trousdale–Macon County line to its intersection with the Smith County line; then (3) Proceed southwesterly along the shared Smith–Trousdale County line, crossing back onto the Nashville map and continuing southwesterly, then westerly along the shared Smith– Trousdale County line to its intersection with the Wilson County line; then VerDate Sep<11>2014 15:57 May 14, 2024 Jkt 262001 (4) Proceed southeasterly along the shared Wilson–Smith County line to its intersection with the DeKalb County line; then (5) Proceed east along the shared Smith–DeKalb County line, crossing onto the Cookeville map and continuing east along the Smith–DeKalb County line to its intersection with the Putnam County line; then (6) Proceed southeast along the shared DeKalb–Putnam County line to its intersection with the White County line; then (7) Proceed southeast along the shared DeKalb–White County line, crossing onto the McMinnville map and continuing south along the DeKalb– White County line to its intersection with the Warren County line; then (8) Proceed west along the shared DeKalb–Warren County line to its intersection with the Cannon County line; then (9) Proceed southwesterly along the shared Warren–Cannon County line to its intersection with the Coffee County line; then (10) Proceed southeast along the shared Warren–Coffee County line to its intersection with the Grundy County line; then (11) Proceed east along the shared Warren–Grundy County line to its intersection with the Sequatchie County line; then (12) Proceed east along the shared Warren–Sequatchie County line to its intersection with the Van Buren County line; then (13) Proceed northwest, then north along the shared Warren–Van Buren County line to its intersection with the White County line; then (14) Proceed east, then southerly along the shared White–Van Buren County line to its intersection with the shared Cumberland–Bledsoe County line; then (15) Proceed east along the shared Bledsoe–Cumberland County line to its intersection with U.S. Highway 127/ State Road 29; then (16) Proceed northeast in a straight line for a total of 21.81 miles, crossing over the Watts Bar Lake map and onto the Oak Ridge map to the intersection of the straight line with the shared Cumberland–Morgan County line east of Hebbertsburg; then (17) Proceed northwesterly, then westerly, then northwesterly along the shared Cumberland–Morgan County line to its intersection with the Fentress County line; then (18) Proceed north, then northeast along the shared Fentress–Morgan County line to its intersection with the Scott County line; then PO 00000 Frm 00026 Fmt 4700 Sfmt 9990 (19) Proceed northeast, then northwest along the shared Scott– Fentress County line, crossing onto the Corbin map and continuing along the shared Scott–Fentress County line to its intersection with the Pickett County line; then (20) Proceed west, then northwesterly along the shared Fentress–Pickett County line, crossing over the Tompkinsville map and onto the Cookeville map and continuing along the shared Fentress–Pickett County line to its intersection with the Overton County line; then (21) Proceed west, then northwesterly along the shared Pickett–Overton County line, crossing onto the Tompkinsville map and continuing along the shares Pickett–Overton County line to its intersection with the Clay County line; then (22) Proceed southwesterly along the shared Overton–Clay County line, crossing onto the Cookeville map and continuing south along the shared Overton–Clay County line to its intersection with the Jackson County line; then (23) Proceed southerly along the shared Overton–Jackson County line to its intersection with the Putnam County line; then (24) Proceed westerly along the shared Putnam–Jackson County line to its intersection with the Smith County line; then (25) Proceed westerly, then northerly along the shared Smith–Jackson County line to its intersection with the Macon County line; then (26) Proceed north along the shared Macon–Jackson County line, crossing onto the Tompkinsville map and continuing along the shared Macon– Jackson County line to its intersection with the Clay County line; then (27) Proceed north along the shared Macon–Clay County line to its intersection with the shared Tennessee– Kentucky State line; then (28) Proceed west along the Tennessee–Kentucky State line, crossing onto the Bowling Green map and returning to the beginning point. Signed: May 9, 2024. Mary G. Ryan, Administrator. Approved: May 10, 2024. Aviva R. Aron-Dine, Acting Assistant Secretary (Tax Policy). [FR Doc. 2024–10626 Filed 5–14–24; 8:45 am] BILLING CODE 4810–31–P E:\FR\FM\15MYR1.SGM 15MYR1

Agencies

[Federal Register Volume 89, Number 95 (Wednesday, May 15, 2024)]
[Rules and Regulations]
[Pages 42363-42366]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-10626]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 9

[Docket No. TTB-2023-0006; T.D. TTB-194; Re: Notice No. 224]
RIN 1513-AD02


Establishment of the Upper Cumberland 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 2,186,689-acre ``Upper Cumberland'' American 
viticultural area (AVA) in Middle Tennessee. The Upper Cumberland 
viticultural area is not located within, nor does it contain, any other 
established viticultural area. TTB designates viticultural areas to 
allow vintners to better describe the origin of their wines and to 
allow consumers to better identify wines they may purchase.

DATES: This final rule is effective June 14, 2024.

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). In addition, the Secretary of the Treasury 
has delegated certain administrative and enforcement authorities to TTB 
through Treasury Order 120-01.
    Part 4 of the TTB regulations (27 CFR part 4) authorizes TTB to 
establish definitive viticultural areas and regulate

[[Page 42364]]

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, once approved, a name and a delineated boundary 
codified in part 9 of the regulations. These designations allow 
vintners and consumers to attribute a given quality, reputation, or 
other characteristic of a wine made from grapes grown in an area to the 
wine's geographic origin. The establishment of AVAs allows vintners to 
describe more accurately the origin of their wines to consumers and 
helps consumers to identify wines they may purchase. Establishment of 
an AVA is neither an approval nor an endorsement by TTB of the wine 
produced in that area.

Requirements

    Section 4.25(e)(2) of the TTB regulations (27 CFR 4.25(e)(2)) 
outlines the procedure for proposing an AVA and allows any interested 
party to petition TTB to establish a grape-growing region as an AVA. 
Section 9.12 of the TTB regulations (27 CFR 9.12) prescribes standards 
for petitions to establish or modify AVAs. Petitions to establish an 
AVA must include the following:
     Evidence that the area within the proposed AVA boundary is 
nationally or locally known by the AVA name specified in the petition;
     An explanation of the basis for defining the boundary of 
the proposed AVA;
     A narrative description of the features of the proposed 
AVA affecting viticulture, such as climate, geology, soils, physical 
features, and elevation, that make the proposed AVA distinctive and 
distinguish it from adjacent areas outside the proposed AVA;
     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 Cumberland Petition

    TTB received a petition from the Appalachian Region Wine Producers 
Association proposing the establishment of the ``Upper Cumberland'' AVA 
in Middle Tennessee. The proposed Upper Cumberland AVA covers 
approximately 2,186,689 acres and is not located within any other AVA. 
There are 55 commercially producing vineyards covering a total of 
approximately 71 acres within the proposed AVA, as well as nine 
wineries.
    According to the petition, the distinguishing features of the 
proposed AVA are its geology and elevation, soils, and climate. The 
proposed Upper Cumberland AVA covers portions of three distinct 
geographical regions: the western portion of the Cumberland Plateau, 
the Eastern Highland Ridge, and the eastern portion of the Outer 
Central Basin. The eastern region of the proposed AVA is located on the 
western portion of the Cumberland Plateau and was formed from layers of 
sedimentary rocks that were deposited when an ocean covered the area. 
The average elevations in the eastern region of the proposed AVA range 
from 1,500 to 1,800 feet. The middle region of the proposed AVA is 
located on a cuesta known as the Eastern Highland Rim. This region of 
the proposed AVA is comprised mainly of various limestones, chert, and 
shale and contains elevations ranging from 600 to 1,000 feet. The 
western region of the proposed Upper Cumberland AVA is mostly an 
escarpment located on the Outer Central Basin of Middle Tennessee with 
underlying rocks of limestone, chert, and shale. The petition did not 
include a range of elevations for the western region of the proposed 
AVA but noted that the elevations are higher than the average 
elevations of the Inner Central Basin region located farther to the 
west.
    The petition notes that the uplifted elevations of the proposed AVA 
allow more direct and concentrated sunlight--particularly UV light--
into the vineyards than in vineyards at lower elevations. According to 
the petition, for every 1,000 feet of elevation, the level of UV light 
increases between 10 and 20 percent. As a result of greater levels of 
UV rays, grapes develop thicker skins which increases the color 
concentration and tannins in the resulting wines.
    According to the petition, regions to the north and south of the 
proposed AVA contain the same geological features found within the 
proposed AVA, but the petition did not provide information on 
elevations within these regions. The region east of the proposed AVA is 
the Valley and Ridge Province of Tennessee, where the sediment and rock 
was folded and faulted rather than being uplifted into a plateau. 
Elevations range from 1,100 to 1,500 feet in the ridges and from 700 to 
1,000 feet in the valleys. To the west of the proposed AVA is the Inner 
Central Basin where elevations are 300 to 400 feet lower than 
elevations within the adjacent portion of the proposed AVA.
    The petition states that there are three types of soil orders in 
the proposed AVA. It defines Ultisols soils as ``strongly leached, acid 
forest soils with relatively low fertility.'' Inceptisols soils 
``exhibit minimal horizon development'' and ``lack features 
characteristic of other soil orders.'' Alfisols soils are moderately-
leached soils with relatively high native fertility. The petition notes 
the eastern portion of the proposed AVA contains Ultisols and 
Inceptisols soils that are moderately deep, dominantly well-drained, 
and strongly acidic. These soils have an udic soil moisture regime, 
meaning that water moves down through the soil at some time in most 
years, and the amount of soil moisture plus rainfall is approximately 
equal to or exceeds the amount of evapotranspiration.
    The middle portion of the proposed AVA contains Ultisols, 
Inceptisols, and Alfisols soils that are moderately-to-very deep, 
moderately well-drained, and loamy or clayey. These soils are in the 
udic soil moisture regime and are also predominantly in the thermic 
soil temperature regime, meaning that soil temperatures at a depth of 
20 inches range from 59 to 72 degrees Fahrenheit.
    The western portion of the proposed AVA contains Ultisols, 
Inceptisols, and Alfisols soil orders. Soils in this portion have a 
thermic soil temperature regime and udic soil moisture regime, similar 
to the soils in the middle portion of the proposed AVA. The petition 
notes that the acidic and well-drained soils of the proposed Upper 
Cumberland AVA allow grapes to retain acidity as they ripen, resulting 
in ``brighter, more acidic finished wines.''
    According to the petition, to the north and south of the proposed 
AVA, the soils are similar to the soils within the proposed AVA. Soils 
east of the proposed AVA are almost exclusively Ultisols soils that 
generally have a thermic soil temperature regime and an udic soil 
moisture regime. Soils west of the proposed AVA include Mollisols 
soils, which are found in grassland ecosystems and are not found in the 
proposed AVA. Additionally, the region west of the proposed AVA does 
not contain as many Ultisols soils as the proposed AVA.

[[Page 42365]]

    The petition provided climate data, specifically annual minimum and 
maximum temperatures, growing season mean temperatures, growing season 
length, growing degree days \1\ (GDDs), USDA plant hardiness zones, and 
annual precipitation amounts for the proposed Upper Cumberland AVA and 
the surrounding regions. According to the petition, the proposed AVA 
has a climate that is suitable for growing a wide variety of wine 
grapes, including vinifera, hybrid, native, and muscadine varietals 
currently growing within the proposed AVA. The proposed AVA has an 
average growing season length of 212 days, a mean growing degree 
temperature of 67.5 degrees Fahrenheit, and an average annual 
precipitation amount of 50.02 inches.
---------------------------------------------------------------------------

    \1\ See Albert J. Winkler, General Viticulture (Berkeley: 
University of California Press, 1974), pages 61-64. In the Winkler 
climate classification system, annual heat accumulation during the 
growing season, measured in annual Growing Degree Days (GDDs), 
defines climatic regions. One GDD accumulates for each degree 
Fahrenheit that a day's mean temperature is above 50 degrees F, the 
minimum temperature required for grapevine growth. The Winkler scale 
regions are as follows: Region Ia: 1,500-2,000 GDDs; Region Ib: 
2,000- 2,500 GDDs; Region II: 2,500-3,000 GDDs; Region III: 3,000-
3,500 GDDs; Region IV: 3,500-4,000 GDDs; Region V: 4,000-4,900 GDDs.
---------------------------------------------------------------------------

    The area south of the proposed AVA has a generally warmer climate, 
longer growing season, and higher annual precipitation amount than the 
proposed AVA. In the area east of the proposed AVA, the mean growing 
season temperature is similar to the proposed AVA, but the growing 
season is slightly shorter, and the annual precipitation amount is 
slightly higher. The area west of the proposed AVA has a shorter mean 
growing season temperature and a higher mean annual precipitation 
amount than the proposed AVA.

Notice of Proposed Rulemaking and Comments Received

    TTB published Notice No. 224 in the Federal Register on August 29, 
2023 (88 FR 59482), proposing to establish the Upper Cumberland AVA. In 
the notice, TTB summarized the evidence from the petition regarding the 
name, boundary, and distinguishing features for the proposed AVA. The 
notice also included information from the petition comparing the 
distinguishing features of the proposed AVA to the surrounding areas. 
For a detailed description of the evidence relating to the name, 
boundary, and distinguishing features of the proposed AVA, and for a 
detailed comparison of the distinguishing features of the proposed AVA 
to the surrounding areas, see Notice No. 224. In Notice No. 224, TTB 
solicited comments on the accuracy of the name, boundary, and other 
required information submitted in support of the petition. The comment 
period for Notice No. 224 closed on October 30, 2023.
    In response to Notice No. 224, TTB received four comments. The 
commenters were Mountain Valley Vineyards, Inc, the Tennessee Wine and 
Grape Board, the Tennessee Farm Winegrowers Alliance, and the Upper 
Cumberland Tourism Association. All the comments supported the 
establishment of the proposed Upper Cumberland AVA, suggesting, for 
example, that the AVA designation would support the growth of the wine 
and grape industries and make the area appealing for tourism, new 
businesses and jobs, and new residents. The comments did not raise any 
new issues concerning the proposed AVA. TTB did not receive any 
comments opposing the establishment of the Upper Cumberland AVA.

TTB Determination

    After careful review of the petition and the comments received in 
response to Notice No. 224, TTB finds that the evidence provided by the 
petitioner supports the establishment of the Upper Cumberland AVA. 
Accordingly, under the authority of the FAA Act, section 1111(d) of the 
Homeland Security Act of 2002, and parts 4 and 9 of the TTB 
regulations, TTB establishes the ``Upper Cumberland'' AVA in Middle 
Tennessee, effective 30 days from the publication date of this 
document.

Boundary Description

    See the narrative description of the boundary of the Upper 
Cumberland AVA in the regulatory text published at the end of this 
final rule.

Maps

    The petitioner provided the required maps, and they are listed 
below in the regulatory text. The Upper Cumberland AVA boundary may 
also be viewed on the AVA Map Explorer on the TTB website, at https://www.ttb.gov/wine/ava-map-explorer.

Impact on Current Wine Labels

    Part 4 of the TTB regulations prohibits any label reference on a 
wine that indicates or implies an origin other than the wine's true 
place of origin. For a wine to be labeled with an AVA name or with a 
brand name that includes an AVA name, at least 85 percent of the wine 
must be derived from grapes grown within the area represented by that 
name, and the wine must meet the other conditions listed in 27 CFR 
4.25(e)(3). If the wine is not eligible for labeling with an AVA name 
and that name appears in the brand name, then the label is not in 
compliance and the bottler must change the brand name and obtain 
approval of a new label. Similarly, if the AVA name appears in another 
reference on the label in a misleading manner, the bottler would have 
to obtain approval of a new label. Different rules apply if a wine has 
a brand name containing an AVA name that was used as a brand name on a 
label approved before July 7, 1986. See 27 CFR 4.39(i)(2) for details.
    With the establishment of the Upper Cumberland AVA, its name, 
``Upper Cumberland,'' will be recognized as a name of viticultural 
significance under Sec.  4.39(i)(3) of the TTB regulations (27 CFR 
4.39(i)(3)). The text of the regulations clarifies this point. 
Consequently, wine bottlers using the name ``Upper Cumberland'' 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 Cumberland AVA will not affect any 
existing AVA. The establishment of the Upper Cumberland AVA will allow 
vintners to use ``Upper Cumberland'' as an appellation of origin for 
wines made primarily from grapes grown within the Upper Cumberland AVA 
if the wines meet the eligibility requirements for the appellation.

Regulatory Flexibility Act

    TTB certifies that this regulation will not have a significant 
economic impact on a substantial number of small entities. The 
regulation imposes no new reporting, recordkeeping, or other 
administrative requirement. Any benefit derived from the use of an AVA 
name would be the result of a proprietor's efforts and consumer 
acceptance of wines from that area. Therefore, no regulatory 
flexibility analysis is required.

Executive Order 12866

    It has been determined that this final rule is not a significant 
regulatory action as defined by Executive Order 12866, as amended. 
Therefore, no regulatory assessment is required.

Drafting Information

    Vonzella C. Johnson of the Regulations and Rulings Division drafted 
this final rule.

List of Subjects in 27 CFR Part 9

    Wine.

[[Page 42366]]

The Regulatory Amendment

    For the reasons discussed in the preamble, TTB amends title 27, 
chapter I, part 9, Code of Federal Regulations, as follows:

PART 9--AMERICAN VITICULTURAL AREAS

0
1. The authority citation for part 9 continues to read as follows:

    Authority:  27 U.S.C. 205.

Subpart C--Approved American Viticultural Areas

0
2. Add Sec.  9.294 to read as follows:


Sec.  9.294   Upper Cumberland.

    (a) Name. The name of the viticultural area described in this 
section is ``Upper Cumberland''. For purposes of part 4 of this 
chapter, ``Upper Cumberland'' is a term of viticultural significance.
    (b) Approved maps. The 8 United States Geological Survey (USGS) 
1:100,000 scale topographic maps used to determine the boundary of the 
Upper Cumberland viticultural area are:
    (1) Bowling Green, 1985;
    (2) Tompkinsville, 1985; photoinspected 1992;
    (3) Corbin, 1981;
    (4) Nashville, 1984;
    (5) Cookeville, 1982;
    (6) Oak Ridge, 1979;
    (7) McMinnville, 1981; and
    (8) Watts Bar Lake, 1981.
    (c) Boundary. The Upper Cumberland viticultural area is located in 
Cumberland, Fentress, Macon, Overton, Putnam, Smith, Warren, and White 
Counties, in Tennessee. The boundary of the viticultural area is 
described as follows:
    (1) The beginning point is on the Bowling Green map at the 
intersection of the shared Macon-Sumner County line and the shared 
Kentucky-Tennessee State line. From the beginning point, proceed south 
along the shared Macon-Sumner County line, crossing onto the Nashville 
map and continuing along the shared Macon-Sumner County line to its 
intersection with the Trousdale County line; then
    (2) Proceed east, then southeast, then east along the shared 
Trousdale-Macon County line, crossing onto the Cookeville map and 
continuing east along the shared Trousdale-Macon County line to its 
intersection with the Smith County line; then
    (3) Proceed southwesterly along the shared Smith-Trousdale County 
line, crossing back onto the Nashville map and continuing 
southwesterly, then westerly along the shared Smith-Trousdale County 
line to its intersection with the Wilson County line; then
    (4) Proceed southeasterly along the shared Wilson-Smith County line 
to its intersection with the DeKalb County line; then
    (5) Proceed east along the shared Smith-DeKalb County line, 
crossing onto the Cookeville map and continuing east along the Smith-
DeKalb County line to its intersection with the Putnam County line; 
then
    (6) Proceed southeast along the shared DeKalb-Putnam County line to 
its intersection with the White County line; then
    (7) Proceed southeast along the shared DeKalb-White County line, 
crossing onto the McMinnville map and continuing south along the 
DeKalb-White County line to its intersection with the Warren County 
line; then
    (8) Proceed west along the shared DeKalb-Warren County line to its 
intersection with the Cannon County line; then
    (9) Proceed southwesterly along the shared Warren-Cannon County 
line to its intersection with the Coffee County line; then
    (10) Proceed southeast along the shared Warren-Coffee County line 
to its intersection with the Grundy County line; then
    (11) Proceed east along the shared Warren-Grundy County line to its 
intersection with the Sequatchie County line; then
    (12) Proceed east along the shared Warren-Sequatchie County line to 
its intersection with the Van Buren County line; then
    (13) Proceed northwest, then north along the shared Warren-Van 
Buren County line to its intersection with the White County line; then
    (14) Proceed east, then southerly along the shared White-Van Buren 
County line to its intersection with the shared Cumberland-Bledsoe 
County line; then
    (15) Proceed east along the shared Bledsoe-Cumberland County line 
to its intersection with U.S. Highway 127/State Road 29; then
    (16) Proceed northeast in a straight line for a total of 21.81 
miles, crossing over the Watts Bar Lake map and onto the Oak Ridge map 
to the intersection of the straight line with the shared Cumberland-
Morgan County line east of Hebbertsburg; then
    (17) Proceed northwesterly, then westerly, then northwesterly along 
the shared Cumberland-Morgan County line to its intersection with the 
Fentress County line; then
    (18) Proceed north, then northeast along the shared Fentress-Morgan 
County line to its intersection with the Scott County line; then
    (19) Proceed northeast, then northwest along the shared Scott-
Fentress County line, crossing onto the Corbin map and continuing along 
the shared Scott-Fentress County line to its intersection with the 
Pickett County line; then
    (20) Proceed west, then northwesterly along the shared Fentress-
Pickett County line, crossing over the Tompkinsville map and onto the 
Cookeville map and continuing along the shared Fentress-Pickett County 
line to its intersection with the Overton County line; then
    (21) Proceed west, then northwesterly along the shared Pickett-
Overton County line, crossing onto the Tompkinsville map and continuing 
along the shares Pickett-Overton County line to its intersection with 
the Clay County line; then
    (22) Proceed southwesterly along the shared Overton-Clay County 
line, crossing onto the Cookeville map and continuing south along the 
shared Overton-Clay County line to its intersection with the Jackson 
County line; then
    (23) Proceed southerly along the shared Overton-Jackson County line 
to its intersection with the Putnam County line; then
    (24) Proceed westerly along the shared Putnam-Jackson County line 
to its intersection with the Smith County line; then
    (25) Proceed westerly, then northerly along the shared Smith-
Jackson County line to its intersection with the Macon County line; 
then
    (26) Proceed north along the shared Macon-Jackson County line, 
crossing onto the Tompkinsville map and continuing along the shared 
Macon-Jackson County line to its intersection with the Clay County 
line; then
    (27) Proceed north along the shared Macon-Clay County line to its 
intersection with the shared Tennessee-Kentucky State line; then
    (28) Proceed west along the Tennessee-Kentucky State line, crossing 
onto the Bowling Green map and returning to the beginning point.

    Signed: May 9, 2024.
Mary G. Ryan,
Administrator.
    Approved: May 10, 2024.
Aviva R. Aron-Dine,
Acting Assistant Secretary (Tax Policy).
[FR Doc. 2024-10626 Filed 5-14-24; 8:45 am]
BILLING CODE 4810-31-P
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