81_FR_62802 81 FR 62626 - Establishment of the Willcox Viticultural Area

81 FR 62626 - Establishment of the Willcox Viticultural Area

DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade Bureau

Federal Register Volume 81, Issue 176 (September 12, 2016)

Page Range62626-62629
FR Document2016-21849

The Alcohol and Tobacco Tax and Trade Bureau (TTB) establishes the approximately 526,000-acre ``Willcox'' viticultural area in portions of Graham and Cochise Counties in southeastern Arizona. The ``Willcox'' viticultural area is not located within any other 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.

Federal Register, Volume 81 Issue 176 (Monday, September 12, 2016)
[Federal Register Volume 81, Number 176 (Monday, September 12, 2016)]
[Rules and Regulations]
[Pages 62626-62629]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-21849]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 9

[Docket No. TTB-2016-0002; T.D. TTB-143; Ref: Notice No. 157]
RIN 1513-AC23


Establishment of the Willcox 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 526,000-acre ``Willcox'' viticultural area in 
portions of Graham and Cochise Counties in southeastern Arizona. The 
``Willcox'' viticultural area is not located within any other 
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 October 12, 2016.

FOR FURTHER INFORMATION CONTACT: Karen A. Thornton, Regulations and 
Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G 
Street NW., Box 12, Washington, DC 20005; phone 202-453-1039, ext. 175.

SUPPLEMENTARY INFORMATION:

Background on Viticultural Areas

TTB Authority

    Section 105(e) of the Federal Alcohol Administration Act (FAA Act), 
27 U.S.C. 205(e), authorizes the Secretary of the Treasury to prescribe 
regulations for the labeling of wine, distilled spirits, and malt 
beverages. The FAA Act provides that these regulations should, among 
other things, prohibit consumer deception and the use of misleading 
statements on labels and ensure that labels provide the consumer with 
adequate information as to the identity and quality of the product. The 
Alcohol and Tobacco Tax and Trade Bureau (TTB) administers the FAA Act 
pursuant to section 1111(d) of the Homeland Security Act of 2002, 
codified at 6 U.S.C. 531(d). The Secretary has delegated various 
authorities through Treasury Department Order 120-01, dated December 
10, 2013 (superseding Treasury Order 120-01, dated January 24, 2003), 
to the TTB Administrator to perform the functions and duties in the 
administration and enforcement of these laws.
    Part 4 of the TTB regulations (27 CFR part 4) authorizes TTB to 
establish definitive viticultural areas and regulate the use of their 
names as appellations of origin on wine labels and in wine 
advertisements. Part 9 of the TTB regulations (27 CFR part 9) sets 
forth standards for the preparation and submission of petitions for the 
establishment or modification of American viticultural areas (AVAs) and 
lists the approved AVAs.

Definition

    Section 4.25(e)(1)(i) of the TTB regulations (27 CFR 4.25(e)(1)(i)) 
defines a viticultural area for American wine as a delimited grape-
growing region having distinguishing features, as described in part 9 
of the regulations, and a name and a delineated boundary, as 
established in part 9 of the regulations. These designations allow 
vintners and consumers to attribute a given quality, reputation, or 
other characteristic of a wine made from grapes grown in an area to the 
wine's geographic origin. The establishment of AVAs allows vintners to 
describe more accurately the origin of their wines to consumers and 
helps consumers to identify wines they may purchase. Establishment of 
an AVA is neither an approval nor an endorsement by TTB of the wine 
produced in that area.

Requirements

    Section 4.25(e)(2) of the TTB regulations (27 CFR 4.25(e)(2)) 
outlines the procedure for proposing an AVA and provides that any 
interested party may petition TTB to establish a grape-growing region 
as an AVA. Section 9.12 of the TTB regulations (27 CFR 9.12) prescribes 
standards for petitions for the establishment or modification of AVAs. 
Petitions to establish an AVA must include the following:
     Evidence that the area within the proposed AVA boundary is 
nationally or locally known by the AVA name specified in the petition;
     An explanation of the basis for defining the boundary of 
the proposed AVA;
     A narrative description of the features of the proposed 
AVA affecting viticulture, such as climate, geology, soils, physical 
features, and elevation, that make the proposed AVA distinctive and 
distinguish it from adjacent areas outside the proposed AVA boundary;
     The appropriate United States Geological Survey (USGS) 
map(s) showing the location of the proposed AVA, with the boundary of 
the proposed AVA clearly drawn thereon; and
     A detailed narrative description of the proposed AVA 
boundary based on USGS map markings.

Willcox Petition

    TTB received a petition from Paul S. Hagar, the special projects 
manager of Dragoon Mountain Vineyard, on behalf of Dragoon Mountain 
Vineyard and other local winery and vineyard owners, proposing the 
establishment of the ``Willcox'' AVA. The proposed AVA contains 
approximately 526,000 acres, and there are 21 commercially-producing 
vineyards covering a total of approximately 454 acres distributed 
throughout the proposed AVA, along with 18 wineries. According to the 
petition, an additional 650 acres of vineyards are planned for the near 
future. The proposed Willcox AVA is not located within any established 
AVA. According to the petition, the distinguishing features of the 
proposed Willcox AVA are its geology, topography, soils, and climate.
    The proposed AVA is in the Arizona geological province known as the 
``basin-and-range'' province, which is characterized by high mountain 
ranges that are separated by valleys. The proposed Willcox AVA is 
located within a broad, shallow basin and is surrounded by higher 
mountain ranges including the Chiricahua, Dos Cabezas, Pinalenos, 
Dragoon, Little Dragoon, and Winchester Mountains. The underlying 
geology of the proposed AVA is comprised mainly of water-borne and 
wind-borne deposits, in contrast to the surrounding mountain ranges 
which are comprised of igneous rock and other volcanic materials. Over 
time, the geologic activity of the region has disrupted the flow of 
creeks, rivers, and drainage systems and has left the proposed AVA in a 
``closed basin.'' Because the basin is ``closed,'' the aquifer beneath 
the proposed AVA is recharged only through rainfall, in contrast to the 
nearby ``open basin'' valleys which have year-round or seasonal creeks. 
Therefore, vineyard owners within the proposed AVA use drip irrigation 
to conserve water.
    The topography within the proposed Willcox AVA is relatively 
uniform and very flat, with slope angles ranging from 0 to 1.5 percent. 
The very shallow slopes, combined with the lack of creeks or streams, 
reduces the risk of erosion

[[Page 62627]]

within the proposed AVA. Because the proposed AVA is surrounded by 
higher, steeper mountains, cool nighttime air flowing down from those 
mountains settles in the vineyards within the proposed AVA. In the 
early spring, this cool air can increase the risk of frost damage to 
new shoots and buds, so vineyard owners often install large fans to mix 
the warmer ambient air with the cooler descending air streams and 
prevent the cool air from pooling.
    The most prevalent soils within the proposed Willcox AVA are Tubac, 
Sonoita, Forrest, and Frye soils, which are predominately loams 
comprised of sand, silt, and clay in relatively even proportions. Loamy 
soils retain adequate amounts of moisture to hydrate vineyards while 
allowing excess water to percolate quickly through to the aquifer. 
Loamy soils are also generally high in nutrients and, therefore, are 
not typically preferred for vineyards because the nutrient levels can 
promote overly vigorous vine and leaf growth. However, the petition 
states that the stress placed on vines by the hot, dry climate of the 
proposed AVA keeps vine and leaf growth in check. The soils of the 
surrounding regions are also mostly loams. However, the four major 
soils of the proposed AVA do not make up as large a percentage of the 
surrounding area, except within the Chiricahua Mountains to the 
southeast of the proposed AVA, where Tubac soils are more prevalent 
than within the proposed Willcox AVA.
    Southeast Arizona, including the region of the proposed Willcox 
AVA, is generally considered to have an arid climate. The most 
significant rainfall occurs during the monsoon season, in July and 
August, when humid air flows into the region from both the Gulf of 
Mexico and the Gulf of California. As the humid air rises over the 
mountains that surround the proposed AVA, the air cools and eventually 
reaches the point where it releases the moisture in the form of rain. 
As the storms move beyond the mountains and foothills, they begin to 
weaken and dissipate. Therefore, growing season precipitation amounts 
are typically lower in the proposed Willcox AVA than in the surrounding 
mountains.
    In the region of the proposed Willcox AVA, elevation also plays a 
role in climate. Regions at higher elevations typically have lower 
growing season temperatures than regions at lower elevations. The 
proposed AVA has higher growing season temperatures than the higher 
surrounding mountains, including the Chiricahua Mountains to the 
southeast. Large valleys lie beyond the mountain ranges that surround 
the proposed AVA. These valleys are at lower elevations than the 
proposed Willcox AVA and, therefore, have higher growing season 
temperatures.

Notice of Proposed Rulemaking and Comments Received

    TTB published Notice No. 157 in the Federal Register on January 21, 
2016 (81 FR 3356), proposing to establish the Willcox AVA. In that 
document, TTB summarized the evidence from the petition regarding the 
name, boundary, and distinguishing features for the proposed AVA. The 
proposed rule also compared the distinguishing features of the proposed 
AVA to the features of 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. 157.
    In Notice No. 157, TTB solicited comments on the accuracy of the 
name, boundary, and other required information submitted in support of 
the petition. The comment period closed on March 21, 2016. TTB received 
three comments in response to Notice No. 157. Two of the three comments 
were from local residents who supported the proposed AVA. One of the 
supporting comments (comment 3) was submitted by a representative of 
Cellar 433 winery and its Dragoon Mountain Vineyard and included three 
letters of support for the proposed AVA from other wine industry 
members within the proposed AVA. The three letters were dated in 2013 
and were provided at that time to the Willcox AVA petitioner, who was 
also an employee of Dragoon Mountain Vineyards. However the letters 
were not included with the proposed Willcox AVA petition, nor had they 
been received by TTB prior to the opening of the comment period. The 
three letters support the proposed Willcox AVA and also mention support 
for a ``Chiricahua Foothills'' AVA. TTB notes that the proposed Willcox 
AVA petition was submitted simultaneously with a petition to establish 
an adjacent ``Chiricahua Foothills'' AVA, but that petition was not 
accepted as perfected by TTB, and the comments regarding the 
petitioned-for Chiricahua Foothills are not being considered as part of 
this rulemaking.
    TTB received one comment from a local resident (comment 2) opposing 
the establishment of an AVA ``in the foothills of the Chiricahua 
Mountains * * *.'' The commenter states his belief that vineyards 
``fragment the open spaces that ranches provide, disrupt the watershed 
and block wildlife patterns.'' The commenter also states his belief 
that the vineyards in the Willcox region do not provide economic 
benefit to the community because most of the vineyards ``are not 
sustainable economically'' and employ seasonal workers from outside the 
area.
    TTB's purpose in establishing an AVA is to allow winemakers to more 
accurately describe the origins of the grapes used to make their wine, 
so that consumers can have more information about the wines they may 
purchase. Economic benefits and other impacts derived from the use of 
an AVA name are the result of a proprietor's efforts and consumer 
acceptance of wines from that area.
    Section 4.25 of the TTB regulations defines an AVA as a delimited 
grape-growing region having distinguishing features and a name and 
delineated boundary as described in part 9 of the regulations. Section 
9.12 of the TTB regulations requires an AVA petition to provide 
sufficient name and geographical and/or climatic information, data, and 
evidence to enable TTB to determine whether the features of the 
proposed AVA are distinguishable from the surrounding regions and have 
an effect on viticulture. TTB determined that the petition to establish 
the proposed Willcox AVA contained sufficient evidence to merit notice 
and comment. Furthermore, TTB has determined that the opposing comment 
did not contain any evidence to contradict the name or distinguishing 
features data contained in the petition. Therefore, TTB does not 
believe that there is sufficient evidence to warrant the withdrawal or 
modification of the proposal to establish the Willcox AVA.

TTB Determination

    After careful review of the petition and the comments received, TTB 
finds that the evidence provided by the petitioner supports the 
establishment of the Willcox 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 ``Willcox'' 
AVA in southeastern Arizona, 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.

[[Page 62628]]

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. 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 this AVA, its name, ``Willcox,'' 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. Consequently, wine bottlers using the 
name ``Willcox'' 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 Willcox AVA will not affect any existing 
AVA. The establishment of the Willcox AVA will allow vintners to use 
``Willcox'' as an appellation of origin for wines made primarily from 
grapes grown within the Willcox AVA if the wines meet the eligibility 
requirements for the appellation.

Regulatory Flexibility Act

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

Executive Order 12866

    It has been determined that this final rule is not a significant 
regulatory action as defined by Executive Order 12866 of September 30, 
1993. Therefore, no regulatory assessment is required.

Drafting Information

    Karen A. Thornton of the Regulations and Rulings Division drafted 
this final rule.

List of Subjects in 27 CFR Part 9

    Wine.

The Regulatory Amendment

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

PART 9--AMERICAN VITICULTURAL AREAS

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

    Authority: 27 U.S.C. 205.

Subpart C--Approved American Viticultural Areas

0
2. Subpart C is amended by adding Sec.  9.259 to read as follows:


Sec.  9.259  Willcox.

    (a) Name. The name of the viticultural area described in this 
section is ``Willcox''. For purposes of part 4 of this chapter, 
``Willcox'' is a term of viticultural significance.
    (b) Approved maps. The 21 United States Geological Survey (USGS) 
1:24,000 scale topographic maps used to determine the boundary of the 
Willcox viticultural area are titled:
    (1) Fort Grant, AZ, 1996;
    (2) West of Greasewood Mountain, AZ, 1996;
    (3) Greasewood Mountain, AZ, 1996;
    (4) Willcox North, AZ, 1996;
    (5) Railroad Pass, Ariz., 1979;
    (6) Simmons Peak, AZ, 1996;
    (7) Dos Cabezas, AZ, 1996;
    (8) Pat Hills North, Ariz., 1974;
    (9) Pat Hills South, Arizona, 1986 provisional edition;
    (10) Sulphur Hills, AZ, 1996;
    (11) Pearce, AZ., 1996;
    (12) Turquoise Mountain, AZ, 1996;
    (13) Black Diamond Peak, AZ, 1996;
    (14) Cochise Stronghold, AZ, 1996;
    (15) Cochise, AZ, 1996;
    (16) Red Bird Hills, AZ, 1996;
    (17) Steele Hills, AZ, 1996;
    (18) Square Mountain, AZ, 1996;
    (19) Muskhog Mountain, AZ, 1996;
    (20) Reiley Peak, AZ, 1996; and
    (21) Sierra Bonita Ranch, Ariz., 1972.
    (c) Boundary. The Willcox viticultural area is located in Cochise 
and Graham Counties in southeastern Arizona. The boundary of the 
Willcox viticultural area is as described below:
    (1) The beginning point is on the Fort Grant map at the 
intersection of State Highway 266 and an unnamed light-duty road known 
locally as Curtis Parkway, in Fort Grant, section 35, T9S/R23E. From 
the beginning point, proceed south-southeast in a straight line 
approximately 20.4 miles, crossing over the West of Greasewood Mountain 
and the Greasewood Mountain map and onto the Willcox North map, to the 
intersection of three unnamed light-duty roads known locally as Porters 
Ranch Road, East Saguaro Road, and North Circle I Road, near benchmark 
(BM) 4,243 on the Willcox North map, section 36, T12S/R24E; then
    (2) Proceed east in a straight line approximately 5 miles to 
Interstate Highway 10 near the community of Raso, section 1, T13S/R25E; 
then
    (3) Proceed south in a straight line approximately 0.8 mile to the 
4,400-foot elevation contour, section 1, T13S/R25E; then
    (4) Proceed southwesterly along the 4,400-foot elevation contour 
around the west end of the Dos Cabezas Mountains and continue 
southeasterly along the 4,400-foot elevation contour for a total of 
approximately 13.3 miles, crossing over the Railroad Pass map and onto 
the Simmons Peak map, to State Highway 186 on the Simmons Peak map, 
section 28, T14S/R26E; then
    (5) Proceed south-southeast in a straight line approximately 15.8 
miles, crossing over the Dos Cabezas map and onto the Pat Hills North 
map, to the intersection of the 4,700-foot elevation contour and an 
unnamed light-duty road known locally as East Creasey Ranch Road on the 
Pat Hills North map near BM 4,695, section 21, T16S/R28E; then
    (6) Proceed southerly along the 4,700-foot elevation contour 
approximately 10.6 miles, crossing onto the Pat Hills South map, to an 
unnamed light-duty road known locally as East Uncle Curtis Lane, 
section 7, T18S/R28 E; then
    (7) Proceed west along East Uncle Curtis Lane approximately 0.5 
mile to an unnamed light-duty road known locally as South Single Tree 
Lane near the marked 4,664-foot elevation point, section 7, T18S/R28E; 
then
    (8) Proceed south along South Single Tree Lane approximately 0.5 
mile to State Highway 181, section 7, T18S/R28E; then
    (9) Proceed west along State Highway 181 approximately 9.9 miles, 
crossing onto the Sulphur Hills map, to State Highway 191, section 10, 
T18S/R26E; then

[[Page 62629]]

    (10) Proceed north-northeasterly, then west, along State Highway 
191 approximately 4.8 miles, crossing onto the Pearce map, to an 
unnamed light-duty road known locally as Kansas Settlement Road, near 
BM 4,327, section 36, T17S/R25E; then
    (11) Proceed southwest in a straight line approximately 8.9 miles, 
crossing over the Turquoise Mountain map and onto the Black Diamond 
Peak map, to the southeastern-most corner of the boundary of the 
Coronado National Forest on the Black Diamond Peak map, section 35, 
T18S/R24 E; then
    (12) Proceed north along the boundary of the Coronado National 
Forest approximately 2 miles to the marked 4,821-foot elevation point, 
section 26, T18S/R24E; then
    (13) Proceed north-northwest in a straight line approximately 13 
miles, crossing over the Cochise Stronghold map and onto the Cochise 
map, to the northeastern corner of the boundary of the Coronado 
National Forest at the marked 4,642 elevation point on the Cochise map, 
section 26, T16S/R23E; then
    (14) Proceed north-northwest in a straight line approximately 1.2 
miles to the intersection of the 4,450-foot elevation contour and an 
unnamed secondary highway known locally as West Dragoon Road, section 
23, T16S/R23E; then
    (15) Proceed north in a straight line approximately 1.3 miles to 
the 4,400-foot elevation contour, section 11, T16S/R23E; then
    (16) Proceed generally northerly along the 4,400-foot elevation 
contour approximately 10 miles, crossing onto the Red Bird Hills map, 
to Interstate Highway 10, section 3, T15S/R23E; then
    (17) Proceed north-northwest in a straight line approximately 5.8 
miles, crossing onto the Steele Hills map, to the intersection of the 
4,600-foot elevation contour and an unnamed light-duty road known 
locally as West Airport Road, section 7, T14S/R23E; then
    (18) Proceed east-northeasterly, then easterly, then northerly, 
then easterly along West Airport Road approximately 7.2 miles, crossing 
back onto the Red Bird Hills map and then onto the Square Mountain map, 
to the 4,240-foot elevation contour east of BM 4,264, section 6, T14S/
R24E; then
    (19) Proceed north-northwest in a straight line approximately 20.5 
miles, crossing over the Muskhog Mountain and Reiley Peak maps and onto 
the Sierra Bonita Ranch map, to the intersection of two unnamed light-
duty roads known locally as West Ash Creek Road and South Wells Road, 
near BM 4,487 on the Sierra Bonita Ranch map, section 3, T11S/R22E; 
then
    (20) Proceed generally northerly along South Wells Road to BM 
4,502, then continuing northerly along the western fork of the road for 
a total of approximately 7.7 miles to an unnamed light-duty road known 
locally as Bonita Aravaipa Road, section 27, T9S/R22E; then
    (21) Proceed east in a straight line approximately 8.2 miles, 
crossing onto the Fort Grant map, to the beginning point.

    Signed: July 25, 2016.
John J. Manfreda,
Administrator.
    Approved: August 22, 2016.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and Tariff Policy).
[FR Doc. 2016-21849 Filed 9-9-16; 8:45 am]
BILLING CODE 4810-31-P



                                                  62626            Federal Register / Vol. 81, No. 176 / Monday, September 12, 2016 / Rules and Regulations

                                                    Dated: July 29, 2016.                                 Secretary has delegated various                       and distinguish it from adjacent areas
                                                  Suzanne Palmieri,                                       authorities through Treasury                          outside the proposed AVA boundary;
                                                  Acting Administrator, Foreign Agricultural              Department Order 120–01, dated                          • The appropriate United States
                                                  Service.                                                December 10, 2013 (superseding                        Geological Survey (USGS) map(s)
                                                  [FR Doc. 2016–21347 Filed 9–9–16; 8:45 am]              Treasury Order 120–01, dated January                  showing the location of the proposed
                                                  BILLING CODE 3410–10–P                                  24, 2003), to the TTB Administrator to                AVA, with the boundary of the
                                                                                                          perform the functions and duties in the               proposed AVA clearly drawn thereon;
                                                                                                          administration and enforcement of these               and
                                                                                                          laws.                                                   • A detailed narrative description of
                                                  DEPARTMENT OF THE TREASURY
                                                                                                             Part 4 of the TTB regulations (27 CFR              the proposed AVA boundary based on
                                                  Alcohol and Tobacco Tax and Trade                       part 4) authorizes TTB to establish                   USGS map markings.
                                                  Bureau                                                  definitive viticultural areas and regulate            Willcox Petition
                                                                                                          the use of their names as appellations of
                                                                                                          origin on wine labels and in wine                        TTB received a petition from Paul S.
                                                  27 CFR Part 9
                                                                                                          advertisements. Part 9 of the TTB                     Hagar, the special projects manager of
                                                  [Docket No. TTB–2016–0002; T.D. TTB–143;                regulations (27 CFR part 9) sets forth                Dragoon Mountain Vineyard, on behalf
                                                  Ref: Notice No. 157]
                                                                                                          standards for the preparation and                     of Dragoon Mountain Vineyard and
                                                  RIN 1513–AC23                                           submission of petitions for the                       other local winery and vineyard owners,
                                                                                                          establishment or modification of                      proposing the establishment of the
                                                  Establishment of the Willcox                            American viticultural areas (AVAs) and                ‘‘Willcox’’ AVA. The proposed AVA
                                                  Viticultural Area                                       lists the approved AVAs.                              contains approximately 526,000 acres,
                                                                                                                                                                and there are 21 commercially-
                                                  AGENCY:  Alcohol and Tobacco Tax and                    Definition                                            producing vineyards covering a total of
                                                  Trade Bureau, Treasury.                                   Section 4.25(e)(1)(i) of the TTB                    approximately 454 acres distributed
                                                  ACTION: Final rule; Treasury decision.                  regulations (27 CFR 4.25(e)(1)(i)) defines            throughout the proposed AVA, along
                                                                                                          a viticultural area for American wine as              with 18 wineries. According to the
                                                  SUMMARY:   The Alcohol and Tobacco Tax                  a delimited grape-growing region having               petition, an additional 650 acres of
                                                  and Trade Bureau (TTB) establishes the                  distinguishing features, as described in              vineyards are planned for the near
                                                  approximately 526,000-acre ‘‘Willcox’’                  part 9 of the regulations, and a name                 future. The proposed Willcox AVA is
                                                  viticultural area in portions of Graham                 and a delineated boundary, as                         not located within any established AVA.
                                                  and Cochise Counties in southeastern                    established in part 9 of the regulations.             According to the petition, the
                                                  Arizona. The ‘‘Willcox’’ viticultural area              These designations allow vintners and                 distinguishing features of the proposed
                                                  is not located within any other                         consumers to attribute a given quality,               Willcox AVA are its geology,
                                                  viticultural area. TTB designates                       reputation, or other characteristic of a              topography, soils, and climate.
                                                  viticultural areas to allow vintners to                 wine made from grapes grown in an area                   The proposed AVA is in the Arizona
                                                  better describe the origin of their wines               to the wine’s geographic origin. The                  geological province known as the
                                                  and to allow consumers to better                        establishment of AVAs allows vintners                 ‘‘basin-and-range’’ province, which is
                                                  identify wines they may purchase.                       to describe more accurately the origin of             characterized by high mountain ranges
                                                  DATES: This final rule is effective                     their wines to consumers and helps                    that are separated by valleys. The
                                                  October 12, 2016.                                       consumers to identify wines they may                  proposed Willcox AVA is located
                                                  FOR FURTHER INFORMATION CONTACT:                        purchase. Establishment of an AVA is                  within a broad, shallow basin and is
                                                  Karen A. Thornton, Regulations and                      neither an approval nor an endorsement                surrounded by higher mountain ranges
                                                  Rulings Division, Alcohol and Tobacco                   by TTB of the wine produced in that                   including the Chiricahua, Dos Cabezas,
                                                  Tax and Trade Bureau, 1310 G Street                     area.                                                 Pinalenos, Dragoon, Little Dragoon, and
                                                  NW., Box 12, Washington, DC 20005;                                                                            Winchester Mountains. The underlying
                                                                                                          Requirements                                          geology of the proposed AVA is
                                                  phone 202–453–1039, ext. 175.
                                                                                                            Section 4.25(e)(2) of the TTB                       comprised mainly of water-borne and
                                                  SUPPLEMENTARY INFORMATION:
                                                                                                          regulations (27 CFR 4.25(e)(2)) outlines              wind-borne deposits, in contrast to the
                                                  Background on Viticultural Areas                        the procedure for proposing an AVA                    surrounding mountain ranges which are
                                                                                                          and provides that any interested party                comprised of igneous rock and other
                                                  TTB Authority
                                                                                                          may petition TTB to establish a grape-                volcanic materials. Over time, the
                                                    Section 105(e) of the Federal Alcohol                 growing region as an AVA. Section 9.12                geologic activity of the region has
                                                  Administration Act (FAA Act), 27                        of the TTB regulations (27 CFR 9.12)                  disrupted the flow of creeks, rivers, and
                                                  U.S.C. 205(e), authorizes the Secretary                 prescribes standards for petitions for the            drainage systems and has left the
                                                  of the Treasury to prescribe regulations                establishment or modification of AVAs.                proposed AVA in a ‘‘closed basin.’’
                                                  for the labeling of wine, distilled spirits,            Petitions to establish an AVA must                    Because the basin is ‘‘closed,’’ the
                                                  and malt beverages. The FAA Act                         include the following:                                aquifer beneath the proposed AVA is
                                                  provides that these regulations should,                   • Evidence that the area within the                 recharged only through rainfall, in
                                                  among other things, prohibit consumer                   proposed AVA boundary is nationally                   contrast to the nearby ‘‘open basin’’
                                                  deception and the use of misleading                     or locally known by the AVA name                      valleys which have year-round or
                                                  statements on labels and ensure that                    specified in the petition;                            seasonal creeks. Therefore, vineyard
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                                                  labels provide the consumer with                          • An explanation of the basis for                   owners within the proposed AVA use
                                                  adequate information as to the identity                 defining the boundary of the proposed                 drip irrigation to conserve water.
                                                  and quality of the product. The Alcohol                 AVA;                                                     The topography within the proposed
                                                  and Tobacco Tax and Trade Bureau                          • A narrative description of the                    Willcox AVA is relatively uniform and
                                                  (TTB) administers the FAA Act                           features of the proposed AVA affecting                very flat, with slope angles ranging from
                                                  pursuant to section 1111(d) of the                      viticulture, such as climate, geology,                0 to 1.5 percent. The very shallow
                                                  Homeland Security Act of 2002,                          soils, physical features, and elevation,              slopes, combined with the lack of creeks
                                                  codified at 6 U.S.C. 531(d). The                        that make the proposed AVA distinctive                or streams, reduces the risk of erosion


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                                                                   Federal Register / Vol. 81, No. 176 / Monday, September 12, 2016 / Rules and Regulations                                      62627

                                                  within the proposed AVA. Because the                    proposed AVA. These valleys are at                    watershed and block wildlife patterns.’’
                                                  proposed AVA is surrounded by higher,                   lower elevations than the proposed                    The commenter also states his belief
                                                  steeper mountains, cool nighttime air                   Willcox AVA and, therefore, have                      that the vineyards in the Willcox region
                                                  flowing down from those mountains                       higher growing season temperatures.                   do not provide economic benefit to the
                                                  settles in the vineyards within the                                                                           community because most of the
                                                                                                          Notice of Proposed Rulemaking and
                                                  proposed AVA. In the early spring, this                                                                       vineyards ‘‘are not sustainable
                                                                                                          Comments Received
                                                  cool air can increase the risk of frost                                                                       economically’’ and employ seasonal
                                                  damage to new shoots and buds, so                          TTB published Notice No. 157 in the                workers from outside the area.
                                                  vineyard owners often install large fans                Federal Register on January 21, 2016
                                                                                                          (81 FR 3356), proposing to establish the                 TTB’s purpose in establishing an AVA
                                                  to mix the warmer ambient air with the
                                                  cooler descending air streams and                       Willcox AVA. In that document, TTB                    is to allow winemakers to more
                                                  prevent the cool air from pooling.                      summarized the evidence from the                      accurately describe the origins of the
                                                     The most prevalent soils within the                  petition regarding the name, boundary,                grapes used to make their wine, so that
                                                  proposed Willcox AVA are Tubac,                         and distinguishing features for the                   consumers can have more information
                                                  Sonoita, Forrest, and Frye soils, which                 proposed AVA. The proposed rule also                  about the wines they may purchase.
                                                  are predominately loams comprised of                    compared the distinguishing features of               Economic benefits and other impacts
                                                  sand, silt, and clay in relatively even                 the proposed AVA to the features of the               derived from the use of an AVA name
                                                  proportions. Loamy soils retain                         surrounding areas. For a detailed                     are the result of a proprietor’s efforts
                                                  adequate amounts of moisture to                         description of the evidence relating to               and consumer acceptance of wines from
                                                  hydrate vineyards while allowing excess                 the name, boundary, and distinguishing                that area.
                                                  water to percolate quickly through to                   features of the proposed AVA, and for                    Section 4.25 of the TTB regulations
                                                  the aquifer. Loamy soils are also                       a detailed comparison of the                          defines an AVA as a delimited grape-
                                                  generally high in nutrients and,                        distinguishing features of the proposed               growing region having distinguishing
                                                  therefore, are not typically preferred for              AVA to the surrounding areas, see                     features and a name and delineated
                                                  vineyards because the nutrient levels                   Notice No. 157.
                                                                                                                                                                boundary as described in part 9 of the
                                                  can promote overly vigorous vine and                       In Notice No. 157, TTB solicited
                                                                                                          comments on the accuracy of the name,                 regulations. Section 9.12 of the TTB
                                                  leaf growth. However, the petition states                                                                     regulations requires an AVA petition to
                                                  that the stress placed on vines by the                  boundary, and other required
                                                                                                          information submitted in support of the               provide sufficient name and
                                                  hot, dry climate of the proposed AVA
                                                                                                          petition. The comment period closed on                geographical and/or climatic
                                                  keeps vine and leaf growth in check.
                                                                                                          March 21, 2016. TTB received three                    information, data, and evidence to
                                                  The soils of the surrounding regions are
                                                                                                          comments in response to Notice No.                    enable TTB to determine whether the
                                                  also mostly loams. However, the four
                                                  major soils of the proposed AVA do not                  157. Two of the three comments were                   features of the proposed AVA are
                                                  make up as large a percentage of the                    from local residents who supported the                distinguishable from the surrounding
                                                  surrounding area, except within the                     proposed AVA. One of the supporting                   regions and have an effect on
                                                  Chiricahua Mountains to the southeast                   comments (comment 3) was submitted                    viticulture. TTB determined that the
                                                  of the proposed AVA, where Tubac soils                  by a representative of Cellar 433 winery              petition to establish the proposed
                                                  are more prevalent than within the                      and its Dragoon Mountain Vineyard and                 Willcox AVA contained sufficient
                                                  proposed Willcox AVA.                                   included three letters of support for the             evidence to merit notice and comment.
                                                     Southeast Arizona, including the                     proposed AVA from other wine industry                 Furthermore, TTB has determined that
                                                  region of the proposed Willcox AVA, is                  members within the proposed AVA. The                  the opposing comment did not contain
                                                  generally considered to have an arid                    three letters were dated in 2013 and                  any evidence to contradict the name or
                                                  climate. The most significant rainfall                  were provided at that time to the                     distinguishing features data contained
                                                  occurs during the monsoon season, in                    Willcox AVA petitioner, who was also                  in the petition. Therefore, TTB does not
                                                  July and August, when humid air flows                   an employee of Dragoon Mountain                       believe that there is sufficient evidence
                                                  into the region from both the Gulf of                   Vineyards. However the letters were not               to warrant the withdrawal or
                                                  Mexico and the Gulf of California. As                   included with the proposed Willcox                    modification of the proposal to establish
                                                  the humid air rises over the mountains                  AVA petition, nor had they been                       the Willcox AVA.
                                                  that surround the proposed AVA, the air                 received by TTB prior to the opening of
                                                  cools and eventually reaches the point                  the comment period. The three letters                 TTB Determination
                                                  where it releases the moisture in the                   support the proposed Willcox AVA and
                                                                                                                                                                  After careful review of the petition
                                                  form of rain. As the storms move                        also mention support for a ‘‘Chiricahua
                                                                                                                                                                and the comments received, TTB finds
                                                  beyond the mountains and foothills,                     Foothills’’ AVA. TTB notes that the
                                                                                                                                                                that the evidence provided by the
                                                  they begin to weaken and dissipate.                     proposed Willcox AVA petition was
                                                                                                                                                                petitioner supports the establishment of
                                                  Therefore, growing season precipitation                 submitted simultaneously with a
                                                                                                                                                                the Willcox AVA. Accordingly, under
                                                  amounts are typically lower in the                      petition to establish an adjacent
                                                                                                                                                                the authority of the FAA Act, section
                                                  proposed Willcox AVA than in the                        ‘‘Chiricahua Foothills’’ AVA, but that
                                                                                                                                                                1111(d) of the Homeland Security Act of
                                                  surrounding mountains.                                  petition was not accepted as perfected
                                                     In the region of the proposed Willcox                                                                      2002, and parts 4 and 9 of the TTB
                                                                                                          by TTB, and the comments regarding
                                                  AVA, elevation also plays a role in                                                                           regulations, TTB establishes the
                                                                                                          the petitioned-for Chiricahua Foothills
                                                  climate. Regions at higher elevations                   are not being considered as part of this              ‘‘Willcox’’ AVA in southeastern
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                                                  typically have lower growing season                     rulemaking.                                           Arizona, effective 30 days from the
                                                  temperatures than regions at lower                         TTB received one comment from a                    publication date of this document.
                                                  elevations. The proposed AVA has                        local resident (comment 2) opposing the               Boundary Description
                                                  higher growing season temperatures                      establishment of an AVA ‘‘in the
                                                  than the higher surrounding mountains,                  foothills of the Chiricahua Mountains                   See the narrative description of the
                                                  including the Chiricahua Mountains to                   * * *.’’ The commenter states his belief              boundary of the AVA in the regulatory
                                                  the southeast. Large valleys lie beyond                 that vineyards ‘‘fragment the open                    text published at the end of this final
                                                  the mountain ranges that surround the                   spaces that ranches provide, disrupt the              rule.


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                                                  62628            Federal Register / Vol. 81, No. 176 / Monday, September 12, 2016 / Rules and Regulations

                                                  Maps                                                    Executive Order 12866                                 Counties in southeastern Arizona. The
                                                    The petitioner provided the required                    It has been determined that this final              boundary of the Willcox viticultural
                                                  maps, and they are listed below in the                  rule is not a significant regulatory action           area is as described below:
                                                                                                          as defined by Executive Order 12866 of                   (1) The beginning point is on the Fort
                                                  regulatory text.
                                                                                                                                                                Grant map at the intersection of State
                                                                                                          September 30, 1993. Therefore, no
                                                  Impact on Current Wine Labels                                                                                 Highway 266 and an unnamed light-
                                                                                                          regulatory assessment is required.
                                                     Part 4 of the TTB regulations prohibits                                                                    duty road known locally as Curtis
                                                  any label reference on a wine that                      Drafting Information                                  Parkway, in Fort Grant, section 35, T9S/
                                                  indicates or implies an origin other than                 Karen A. Thornton of the Regulations                R23E. From the beginning point,
                                                                                                          and Rulings Division drafted this final               proceed south-southeast in a straight
                                                  the wine’s true place of origin. For a
                                                                                                          rule.                                                 line approximately 20.4 miles, crossing
                                                  wine to be labeled with an AVA name
                                                                                                                                                                over the West of Greasewood Mountain
                                                  or with a brand name that includes an                   List of Subjects in 27 CFR Part 9                     and the Greasewood Mountain map and
                                                  AVA name, at least 85 percent of the
                                                                                                              Wine.                                             onto the Willcox North map, to the
                                                  wine must be derived from grapes
                                                                                                                                                                intersection of three unnamed light-duty
                                                  grown within the area represented by                    The Regulatory Amendment                              roads known locally as Porters Ranch
                                                  that name, and the wine must meet the
                                                                                                             For the reasons discussed in the                   Road, East Saguaro Road, and North
                                                  other conditions listed in 27 CFR
                                                                                                          preamble, TTB amends title 27, chapter                Circle I Road, near benchmark (BM)
                                                  4.25(e)(3). If the wine is not eligible for
                                                                                                          I, part 9, Code of Federal Regulations, as            4,243 on the Willcox North map, section
                                                  labeling with an AVA name and that
                                                                                                          follows:                                              36, T12S/R24E; then
                                                  name appears in the brand name, then
                                                                                                                                                                   (2) Proceed east in a straight line
                                                  the label is not in compliance and the                  PART 9—AMERICAN VITICULTURAL                          approximately 5 miles to Interstate
                                                  bottler must change the brand name and                  AREAS                                                 Highway 10 near the community of
                                                  obtain approval of a new label.
                                                                                                                                                                Raso, section 1, T13S/R25E; then
                                                  Similarly, if the AVA name appears in                   ■ 1. The authority citation for part 9                   (3) Proceed south in a straight line
                                                  another reference on the label in a                     continues to read as follows:                         approximately 0.8 mile to the 4,400-foot
                                                  misleading manner, the bottler would                                                                          elevation contour, section 1, T13S/
                                                                                                              Authority: 27 U.S.C. 205.
                                                  have to obtain approval of a new label.                                                                       R25E; then
                                                  Different rules apply if a wine has a                   Subpart C—Approved American                              (4) Proceed southwesterly along the
                                                  brand name containing an AVA name                       Viticultural Areas                                    4,400-foot elevation contour around the
                                                  that was used as a brand name on a                                                                            west end of the Dos Cabezas Mountains
                                                  label approved before July 7, 1986. See                 ■ 2. Subpart C is amended by adding                   and continue southeasterly along the
                                                  27 CFR 4.39(i)(2) for details.                          § 9.259 to read as follows:                           4,400-foot elevation contour for a total
                                                     With the establishment of this AVA,                                                                        of approximately 13.3 miles, crossing
                                                  its name, ‘‘Willcox,’’ will be recognized               § 9.259     Willcox.
                                                                                                                                                                over the Railroad Pass map and onto the
                                                  as a name of viticultural significance                    (a) Name. The name of the viticultural
                                                                                                                                                                Simmons Peak map, to State Highway
                                                  under § 4.39(i)(3) of the TTB regulations               area described in this section is
                                                                                                                                                                186 on the Simmons Peak map, section
                                                  (27 CFR 4.39(i)(3)). The text of the                    ‘‘Willcox’’. For purposes of part 4 of this
                                                                                                                                                                28, T14S/R26E; then
                                                  regulation clarifies this point.                        chapter, ‘‘Willcox’’ is a term of                        (5) Proceed south-southeast in a
                                                  Consequently, wine bottlers using the                   viticultural significance.                            straight line approximately 15.8 miles,
                                                  name ‘‘Willcox’’ in a brand name,                         (b) Approved maps. The 21 United                    crossing over the Dos Cabezas map and
                                                  including a trademark, or in another                    States Geological Survey (USGS)                       onto the Pat Hills North map, to the
                                                  label reference as to the origin of the                 1:24,000 scale topographic maps used to               intersection of the 4,700-foot elevation
                                                  wine, will have to ensure that the                      determine the boundary of the Willcox                 contour and an unnamed light-duty
                                                  product is eligible to use the AVA name                 viticultural area are titled:                         road known locally as East Creasey
                                                  as an appellation of origin.                              (1) Fort Grant, AZ, 1996;
                                                                                                                                                                Ranch Road on the Pat Hills North map
                                                     The establishment of the Willcox                       (2) West of Greasewood Mountain,
                                                                                                                                                                near BM 4,695, section 21, T16S/R28E;
                                                  AVA will not affect any existing AVA.                   AZ, 1996;
                                                                                                            (3) Greasewood Mountain, AZ, 1996;                  then
                                                  The establishment of the Willcox AVA                                                                             (6) Proceed southerly along the 4,700-
                                                  will allow vintners to use ‘‘Willcox’’ as                 (4) Willcox North, AZ, 1996;
                                                                                                            (5) Railroad Pass, Ariz., 1979;                     foot elevation contour approximately
                                                  an appellation of origin for wines made                                                                       10.6 miles, crossing onto the Pat Hills
                                                                                                            (6) Simmons Peak, AZ, 1996;
                                                  primarily from grapes grown within the                                                                        South map, to an unnamed light-duty
                                                                                                            (7) Dos Cabezas, AZ, 1996;
                                                  Willcox AVA if the wines meet the                                                                             road known locally as East Uncle Curtis
                                                                                                            (8) Pat Hills North, Ariz., 1974;
                                                  eligibility requirements for the                          (9) Pat Hills South, Arizona, 1986                  Lane, section 7, T18S/R28 E; then
                                                  appellation.                                            provisional edition;                                     (7) Proceed west along East Uncle
                                                  Regulatory Flexibility Act                                (10) Sulphur Hills, AZ, 1996;                       Curtis Lane approximately 0.5 mile to
                                                                                                            (11) Pearce, AZ., 1996;                             an unnamed light-duty road known
                                                     TTB certifies that this regulation will                (12) Turquoise Mountain, AZ, 1996;                  locally as South Single Tree Lane near
                                                  not have a significant economic impact                    (13) Black Diamond Peak, AZ, 1996;                  the marked 4,664-foot elevation point,
                                                  on a substantial number of small                          (14) Cochise Stronghold, AZ, 1996;                  section 7, T18S/R28E; then
                                                  entities. The regulation imposes no new                   (15) Cochise, AZ, 1996;                                (8) Proceed south along South Single
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                                                  reporting, recordkeeping, or other                        (16) Red Bird Hills, AZ, 1996;                      Tree Lane approximately 0.5 mile to
                                                  administrative requirement. Any benefit                   (17) Steele Hills, AZ, 1996;                        State Highway 181, section 7, T18S/
                                                  derived from the use of an AVA name                       (18) Square Mountain, AZ, 1996;                     R28E; then
                                                  would be the result of a proprietor’s                     (19) Muskhog Mountain, AZ, 1996;                       (9) Proceed west along State Highway
                                                  efforts and consumer acceptance of                        (20) Reiley Peak, AZ, 1996; and                     181 approximately 9.9 miles, crossing
                                                  wines from that area. Therefore, no                       (21) Sierra Bonita Ranch, Ariz., 1972.              onto the Sulphur Hills map, to State
                                                  regulatory flexibility analysis is                        (c) Boundary. The Willcox viticultural              Highway 191, section 10, T18S/R26E;
                                                  required.                                               area is located in Cochise and Graham                 then


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                                                                   Federal Register / Vol. 81, No. 176 / Monday, September 12, 2016 / Rules and Regulations                                      62629

                                                     (10) Proceed north-northeasterly, then               4,487 on the Sierra Bonita Ranch map,                 FOR FURTHER INFORMATION CONTACT:
                                                  west, along State Highway 191                           section 3, T11S/R22E; then                            Brian Banal, 703–571–1652.
                                                  approximately 4.8 miles, crossing onto                     (20) Proceed generally northerly along             SUPPLEMENTARY INFORMATION:     On
                                                  the Pearce map, to an unnamed light-                    South Wells Road to BM 4,502, then                    Thursday, May 26, 2016 (81 FR 33389–
                                                  duty road known locally as Kansas                       continuing northerly along the western                33391), the Department of Defense
                                                  Settlement Road, near BM 4,327, section                 fork of the road for a total of                       published an interim final rule titled
                                                  36, T17S/R25E; then                                     approximately 7.7 miles to an unnamed                 ‘‘Civil Monetary Penalty Inflation
                                                     (11) Proceed southwest in a straight                 light-duty road known locally as Bonita               Adjustment’’ for a 60-day public
                                                  line approximately 8.9 miles, crossing                  Aravaipa Road, section 27, T9S/R22E;                  comment period. The public comment
                                                  over the Turquoise Mountain map and                     then                                                  period ended on July 25, 2016. No
                                                  onto the Black Diamond Peak map, to                        (21) Proceed east in a straight line               public comments were received.
                                                  the southeastern-most corner of the                     approximately 8.2 miles, crossing onto                   The Federal Civil Penalties Inflation
                                                  boundary of the Coronado National                       the Fort Grant map, to the beginning                  Adjustment Act Improvements Act of
                                                  Forest on the Black Diamond Peak map,                   point.                                                2015 requires agencies to adjust the
                                                  section 35, T18S/R24 E; then                                                                                  level of civil monetary penalties through
                                                                                                            Signed: July 25, 2016.
                                                     (12) Proceed north along the boundary                                                                      a final rule in the Federal Register.
                                                  of the Coronado National Forest                         John J. Manfreda,
                                                  approximately 2 miles to the marked                     Administrator.                                        Background Information
                                                  4,821-foot elevation point, section 26,                   Approved: August 22, 2016.                             The Federal Civil Penalties Inflation
                                                  T18S/R24E; then                                         Timothy E. Skud,                                      Adjustment Act of 1990, Public Law
                                                     (13) Proceed north-northwest in a                    Deputy Assistant Secretary (Tax, Trade, and           101–410, 104 Stat. 890 (28 U.S.C. 2461,
                                                  straight line approximately 13 miles,                   Tariff Policy).                                       note), as amended by the Debt
                                                  crossing over the Cochise Stronghold                    [FR Doc. 2016–21849 Filed 9–9–16; 8:45 am]            Collection Improvement Act of 1996,
                                                  map and onto the Cochise map, to the                    BILLING CODE 4810–31–P                                Public Law 104–134, April 26, 1996,
                                                  northeastern corner of the boundary of                                                                        and further amended by the Federal
                                                  the Coronado National Forest at the                                                                           Civil Penalties Inflation Adjustment Act
                                                  marked 4,642 elevation point on the                                                                           Improvements Act of 2015 (the 2015
                                                  Cochise map, section 26, T16S/R23E;                     DEPARTMENT OF DEFENSE                                 Act), Public Law 114–74, November 2,
                                                  then                                                                                                          2015, requires agencies to annually
                                                                                                          Office of the Secretary
                                                     (14) Proceed north-northwest in a                                                                          adjust the level of Civil Monetary
                                                  straight line approximately 1.2 miles to                                                                      Penalties (CMP) for inflation to improve
                                                                                                          32 CFR Part 269                                       their effectiveness and maintain their
                                                  the intersection of the 4,450-foot
                                                  elevation contour and an unnamed                        [Docket ID: DOD–2016–OS–0045]                         deterrent effect. The 2015 Act requires
                                                  secondary highway known locally as                                                                            that not later than July 1, 2016, and not
                                                  West Dragoon Road, section 23, T16S/                    RIN 0790–AJ42                                         later than January 15 of every year
                                                  R23E; then                                                                                                    thereafter, the head of each agency must
                                                     (15) Proceed north in a straight line                Civil Monetary Penalty Inflation                      adjust each CMP within its jurisdiction
                                                  approximately 1.3 miles to the 4,400-                   Adjustment                                            by the inflation adjustment described in
                                                  foot elevation contour, section 11, T16S/                                                                     the 2015 Act. The inflation adjustment
                                                  R23E; then                                              AGENCY:  Under Secretary of Defense
                                                                                                                                                                must be determined by increasing the
                                                     (16) Proceed generally northerly along               (Comptroller), Department of Defense.
                                                                                                                                                                maximum CMP or the range of
                                                  the 4,400-foot elevation contour                        ACTION: Final rule.                                   minimum and maximum CMPs, as
                                                  approximately 10 miles, crossing onto                                                                         applicable, for each CMP by the cost-of-
                                                  the Red Bird Hills map, to Interstate                   SUMMARY:    On November 2, 2015, the
                                                                                                          President signed into law the Federal                 living adjustment, rounded to the
                                                  Highway 10, section 3, T15S/R23E; then                                                                        nearest multiple of $1. The cost-of-
                                                     (17) Proceed north-northwest in a                    Civil Penalties Inflation Adjustment Act
                                                                                                          Improvements Act of 2015 (the 2015                    living adjustment is the percentage (if
                                                  straight line approximately 5.8 miles,                                                                        any) for each CMP by which the
                                                  crossing onto the Steele Hills map, to                  Act), which further amended the
                                                                                                          Federal Civil Penalties Inflation                     Consumer Price Index (CPI) for the
                                                  the intersection of the 4,600-foot                                                                            month of October preceding the date of
                                                  elevation contour and an unnamed                        Adjustment Act of 1990. The 2015 Act
                                                                                                          updates the process by which agencies                 the adjustment (January 15), exceeds the
                                                  light-duty road known locally as West                                                                         CPI for the month of October in the
                                                  Airport Road, section 7, T14S/R23E;                     adjust applicable civil monetary
                                                                                                          penalties (CMP) for inflation to retain               previous calendar year. The initial
                                                  then                                                                                                          adjustment to a CMP may not exceed
                                                     (18) Proceed east-northeasterly, then                the deterrent effect of those penalties.
                                                                                                          The 2015 Act requires that not later than             150 percent of the corresponding level
                                                  easterly, then northerly, then easterly                                                                       in effect on November 2, 2015.
                                                  along West Airport Road approximately                   July 1, 2016, and not later than January
                                                                                                                                                                   Any increased penalties will only
                                                  7.2 miles, crossing back onto the Red                   15 of every year thereafter, the head of
                                                                                                                                                                apply to violations which occur after the
                                                  Bird Hills map and then onto the Square                 each agency must, by regulation
                                                                                                                                                                date on which the increase takes effect.
                                                  Mountain map, to the 4,240-foot                         published in the Federal Register,                       Each CMP subject to the jurisdiction
                                                  elevation contour east of BM 4,264,                     adjust each CMP within its jurisdiction               of the Department of Defense has been
                                                  section 6, T14S/R24E; then                              by the inflation adjustment described in              adjusted in accordance with the 2015
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                                                     (19) Proceed north-northwest in a                    the 2015 Act. Accordingly, the                        Act. In compliance with the 2015 Act,
                                                  straight line approximately 20.5 miles,                 Department of Defense must adjust the                 the Department of Defense is amending
                                                  crossing over the Muskhog Mountain                      level of all civil monetary penalties                 its CMP penalty amounts.
                                                  and Reiley Peak maps and onto the                       under its jurisdiction through a final
                                                  Sierra Bonita Ranch map, to the                         rule and make subsequent annual                       Executive Summary
                                                  intersection of two unnamed light-duty                  adjustments for inflation.                              On November 2, 2015, the President
                                                  roads known locally as West Ash Creek                   DATES: This rule is effective September               signed into law the Federal Civil
                                                  Road and South Wells Road, near BM                      12, 2016.                                             Penalties Inflation Adjustment Act


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Document Created: 2016-09-10 00:56:30
Document Modified: 2016-09-10 00:56:30
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule; Treasury decision.
DatesThis final rule is effective October 12, 2016.
ContactKaren 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.
FR Citation81 FR 62626 
RIN Number1513-AC23

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