83 FR 64276 - Establishment of the Van Duzer Corridor Viticultural Area and Clarification of the Eola-Amity Hills Viticultural Area Boundary Description
DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade Bureau Federal Register Volume 83, Issue 240
(December 14, 2018)
Alcohol and Tobacco Tax and Trade Bureau
Federal Register Volume 83, Issue 240 (December 14, 2018)
| Page Range | 64276-64280 | |
| FR Document | 2018-27017 |
[Federal Register Volume 83, Number 240 (Friday, December 14, 2018)] [Rules and Regulations] [Pages 64276-64280] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2018-27017] ----------------------------------------------------------------------- DEPARTMENT OF THE TREASURY Alcohol and Tobacco Tax and Trade Bureau 27 CFR Part 9 [Docket No. TTB-2018-0006; T.D. TTB-155; Ref: Notice No. 175] RIN 1513-AC39 Establishment of the Van Duzer Corridor Viticultural Area and Clarification of the Eola-Amity Hills Viticultural Area Boundary Description AGENCY: Alcohol and Tobacco Tax and Trade Bureau, Treasury. ACTION: Final rule; Treasury decision. ----------------------------------------------------------------------- SUMMARY: The Alcohol and Tobacco Tax and Trade Bureau (TTB) establishes the approximately 59,871-acre ``Van Duzer Corridor'' viticultural area in Polk and [[Page 64277]] Yamhill Counties, Oregon. The viticultural area lies entirely within the established Willamette Valley 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. TTB also clarifies the boundary description of the adjacent Eola-Amity Hills viticultural area. DATES: This final rule is effective January 14, 2019. FOR FURTHER INFORMATION CONTACT: Kaori Flores, 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. 3190. 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 to TTB of petitions for the establishment or modification of American viticultural areas (AVAs) and lists the approved AVAs. Definition Section 4.25(e)(1)(i) of the TTB regulations (27 CFR 4.25(e)(1)(i)) defines a viticultural area for American wine as a delimited grape- growing region having distinguishing features, as described in part 9 of the regulations, and a name and a delineated boundary, as established in part 9 of the regulations. These designations allow vintners and consumers to attribute a given quality, reputation, or other characteristic of a wine made from grapes grown in an area to the wine's geographic origin. The establishment of AVAs allows vintners to describe more accurately the origin of their wines to consumers and helps consumers to identify wines they may purchase. Establishment of an AVA is neither an approval nor an endorsement by TTB of the wine produced in that area. Requirements Section 4.25(e)(2) of the TTB regulations (27 CFR 4.25(e)(2)) outlines the procedure for proposing an AVA and provides that any interested party may petition TTB to establish a grape-growing region as an AVA. Section 9.12 of the TTB regulations (27 CFR 9.12) prescribes standards for petitions for the establishment or modification of AVAs. Petitions to establish an AVA must include the following:Evidence that the area within the proposed AVA boundary is nationally or locally known by the AVA name specified in the petition; An explanation of the basis for defining the boundary of the proposed AVA; A narrative description of the features of the proposed AVA affecting viticulture, such as climate, geology, soils, physical features, and elevation, that make the proposed AVA distinctive and distinguish it from adjacent areas outside the proposed AVA boundary; The appropriate United States Geological Survey (USGS) map(s) showing the location of the proposed AVA, with the boundary of the proposed AVA clearly drawn thereon; and A detailed narrative description of the proposed AVA boundary based on USGS map markings. Van Duzer Corridor Petition TTB received a petition from Mr. Jeff Havlin, the owner of Havlin Vineyard and chair of the Van Duzer Corridor AVA Committee, on behalf of himself and other local grape growers and vintners proposing the establishment of the ``Van Duzer Corridor'' AVA in portions of Yamhill and Polk Counties. The proposed Van Duzer Corridor AVA is located in Oregon and lies entirely within the established Willamette Valley AVA (27 CFR 9.90) and covers approximately 59,871 acres. There are 17 commercially-producing vineyards covering a total of approximately 1,000 acres, as well as 6 wineries, within the proposed AVA. According to the petition, the distinguishing features of the proposed Van Duzer Corridor AVA are its topography, climate, and soils. The topography of the proposed Van Duzer Corridor is characterized by low elevations and gently rolling hills. The low elevations allow cool breezes to flow relatively unimpeded from the Pacific Ocean, through the Coastal Ranges, forming a wind corridor gap known as the ``Van Duzer Corridor.'' The western end of the Van Duzer Corridor wind gap is narrow and squeezed by high elevations to the north and south, leaving little room for viticulture. However, the eastern end of the Van Duzer Corridor wind gap, where the proposed Van Duzer Corridor AVA is located, features the same low elevations, and rolling hills as the western portion, with the distinction of having a wider area suitable for vineyards. Within the Van Duzer Corridor AVA, the elevation does not impede the eastward-flowing marine air, allowing higher wind speeds to flow through. In contrast, the surrounding regions all have higher elevations. Additionally, the climate of the proposed Van Duzer Corridor AVA is characterized by consistent high wind speeds and low cumulative growing degree day (GDD) accumulations.\1\ The consistently high winds in the proposed AVA contribute to thicker grape skins, and raise the levels of phenolic compounds in the fruit. In contrast, the wind speeds to the north and south-southeast of the proposed AVA are slower. The proposed Van Duzer Corridor has lower GDD accumulations than the surrounding regions to the north and southeast, indicating that its temperatures are generally cooler. The cooler temperatures ripen the fruit slowly, creating a longer hang time than for the same grape varietal grown in a region with higher GDD accumulations. The longer hang time contributes to a reduced acidity level. TTB notes that the petition did not include wind speed data and GDD accumulations for the regions to the west and south-southwest of the proposed AVA. --------------------------------------------------------------------------- \1\ 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, the minimum temperature required for grapevine growth. See Albert J. Winkler, General Viticulture (Berkeley: University of California Press, 1974), pages 61-64. --------------------------------------------------------------------------- Lastly, the soils of the proposed Van Duzer Corridor AVA are primarily [[Page 64278]] uplifted marine sedimentary loams and silts with alluvial overlay, as well as some uplifted basalt. The soils are typically shallow, well- drained, and have a bedrock of siltstone. The high silt and clay levels in the soils balance the overall pH level of the soil by buffering against a sudden increase or decrease in soil pH. The buffering effect is beneficial to vineyards because it boosts the ability of the soils to maintain a stable pH level. In contrast, the soils immediately outside the northern and western boundaries contain soils from different soil series. Farther north and west, the soils contain higher concentrations of basalt and other volcanic materials. In contrast, east of the proposed Van Duzer Corridor AVA, within the Eola-Amity Hills AVA (27 CFR 9.202), the soils contain larger amounts of volcanic material than the proposed AVA. Additionally, south of the proposed AVA, the soils contain large concentrations of Ice Age loess, which is not found in the proposed Van Duzer Corridor AVA. Notice of Proposed Rulemaking and Comments Received TTB published Notice No. 175 in the Federal Register on April 6, 2018 (83 FR 14795), proposing to establish the Van Duzer Corridor 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 compared 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. 175. In Notice No. 175, TTB solicited comments on the accuracy of the name, boundary, and other required information submitted in support of the petition. In addition, given the proposed Van Duzer Corridor AVA's location within the Willamette Valley AVA, TTB solicited comments on whether the evidence submitted in the petition regarding the distinguishing features of the proposed AVA sufficiently differentiates it from the Willamette Valley AVA. Finally, TTB requested comments on whether the geographic features of the proposed AVA are so distinguishable from the Willamette Valley AVA that the proposed Van Duzer Corridor AVA should no longer be part of the established AVA. The comment period closed June 5, 2018. Comments Received on the Proposed Van Duzer Corridor AVA In response to Notice No. 175, TTB received a total of 18 comments. Commenters included local residents, members of the wine industry, several vineyard employees, wine consultants, and consumers. All of the comments generally supported the establishment of the proposed Van Duzer Corridor AVA, with six of the commenters noting the effects of the proposed AVA's higher wind speeds on the grape skins. Four of the commenters also supported the establishment of the proposed Van Duzer Corridor AVA due to the marine sedimentary soils and the unique topography. None of the comments opposed the establishment of the proposed AVA. TTB received one comment that supported the establishment of the proposed AVA, but the commenter also suggested ``Salt Creek'' as an ``equally suitable'' and ``much more pleasant'' name. However, TTB regulations require a proposed AVA name to be supported by evidence that demonstrates the name is currently used to refer to the proposed AVA. See Sec. 9.12(a)(1). The commenter did not submit evidence of the current use of the name ``Salt Creek'' to refer to the region of the proposed AVA, nor did she provide any documentation refuting the evidence provided in the petition in support of the name ``Van Duzer Corridor.'' Therefore, TTB cannot determine that ``Salt Creek'' is a more appropriate name for the proposed AVA than ``Van Duzer Corridor.'' Another comment asked if the word ``corridor'' could be omitted from the AVA name when used as an appellation of origin on wine labels. Section 9.12(a)(1) requires an AVA name to be supported by evidence of current use of the name to refer to the region. Because neither the commenter nor the petitioner provided name evidence that the area is simply known as ``Van Duzer,'' TTB cannot determine if ``Van Duzer,'' standing alone, would be an appropriate alternative name for the proposed AVA. As a result, TTB would only allow the full AVA name ``Van Duzer Corridor'' to be used as an appellation of origin on a wine label once the proposed AVA is established. However, TTB did not propose to designate the phrase ``Van Duzer'' as a term of viticultural significance with respect to this proposed AVA, since doing so could have an adverse effect on current labels that use ``Van Duzer'' as part of a brand name. Therefore, if the proposed AVA is established, the phrase ``Van Duzer'' (without the word ``corridor'') may be used as a brand name or as part of a brand name on wine labels without having to meet the appellation of origin eligibility requirements for the Van Duzer Corridor viticultural area. Clarification of the Eola-Amity Hills AVA Boundary Description Because one of the established Eola-Amity Hills AVA boundaries is concurrent with the boundary of the proposed Van Duzer Corridor AVA, TTB also proposed in Notice No. 175 to clarify the description of portions of the Eola-Amity Hills AVA boundary. The clarifications were proposed to correct errors in the current description of the boundary. TTB received no comments on the proposed boundary clarifications during the public comment period for Notice No. 175. Therefore, TTB is proceeding with clarifying the description of the Eola-Amity Hills AVA boundary in this document. The first boundary clarification concerns the description of the beginning point of the AVA boundary. The Eola-Amity Hills AVA boundary description shall now begin at the intersection of State Highway 22 and Rickreall Road instead of the intersection of State Highway 22 and 223, which is located west of the town of Rickreall, Oregon. TTB believes the erroneous description of the Eola-Amity Hills boundary beginning point resulted from a misreading of the markings for State Highway 223 on the Rickreall, Oregon map. TTB also believes that Oregon wine industry members always have understood the Eola-Amity Hills AVA boundary to begin at the intersection of State Highway 22 rather than at the currently-described beginning point. TTB notes that commercially-produced maps of the Eola-Amity Hills AVA show its boundary located at the intersection of State Highway 22 and Rickreall Road. For example, see the Eola-Amity Hills AVA maps posted at http://eolaamityhills.com/explore-our-region/regional-map/ and http://www.everyvine.com/wine-regions/region/Eola_-_Amity_Hills/. Additionally, TTB is further amending the Eola-Amity Hills boundary descriptions for clarity. TTB is removing the word ``township'' from ``township of Bethel'' to add a more precise description of the point where the AVA's boundary intersects the 200-foot contour line, and to minimize confusion since Bethel appears on the Amity, Oregon Map as the name of a crossroads, not as the name of a political or geographic township. TTB is also clarifying the direction in which the [[Page 64279]] Eola-Amity Hills AVA boundary proceeds along the 200-foot contour line from Oak Grove Road, to clarify the point at which that contour line intersects Zena Road, and to clarify that the boundary follows Zena Road for a short distance to its intersection with Oak Grove Road south of Bethel. TTB is also clarifying that the AVA boundary follows Frizzell Road to the road's first intersection with the 200-foot contour line. Lastly, TTB is clarifying that, in returning to the AVA's boundary's beginning point, the boundary crosses from the Amity, Oregon map onto the Rickreall, Oregon map. TTB believes the correction and clarifications will not affect the ability of any bottler to use the Eola-Amity Hills AVA name on a wine label. TTB Determination After careful review of the petition and the comments received in response to Notice No. 175. TTB finds that the evidence provided by the petitioner supports the establishment of the Van Duzer Corridor AVA. Accordingly, under the authority of the FAA Act, section 1111(d) of the Homeland Security Act of 2002, and part 4 of the TTB regulations, TTB establishes the ``Van Duzer Corridor'' AVA in portions of Yamhill and Polk Counties, Oregon, effective 30 days from the publication date of this document. TTB has also determined that the Van Duzer Corridor AVA will remain part of the established Willamette Valley AVA. As discussed in Notice No. 175, the proposed Van Duzer Corridor shares some broad characteristics with the established AVA. For example, elevations within the proposed AVA are below 1,000 feet, and the soils are primarily silty loams and clay loams. However, the proposed Van Duzer Corridor AVA's location at the eastern end of the only wind gap in the portion of the Coastal Ranges that borders the Willamette Valley AVA creates a unique microclimate with persistently high wind speeds and lower growing degree day accumulations. The grapes grown in the proposed AVA have different physical characteristics, such as thicker grape skins, and maturation rates than the same varietals grown in other parts of the Willamette Valley AVA. Boundary Description See the narrative description of the boundary of the Van Duzer Corridor AVA in the regulatory text published at the end of this final rule. Maps The petitioner provided the required maps, and they are listed below in the regulatory text. Impact on Current Wine Labels Part 4 of the TTB regulations prohibits any label reference on a wine that indicates or implies an origin other than the wine's true place of origin. 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, ``Van Duzer Corridor'' 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 ``Van Duzer Corridor'' in a brand name, including a trademark, or in another label reference as to the origin of the wine, will have to ensure that the product is eligible to use the AVA name as an appellation of origin. TTB is not designating the phrase ``Van Duzer'' as a term of viticultural significance, in order to avoid a potential negative effect on current labels that use ``Van Duzer'' as part of a brand name on wine labels. Therefore, if the proposed AVA is established, the phrase ``Van Duzer'' (without the word ``corridor'') may be used as a brand name or as part of a brand name on wine labels without having to meet the appellation of origin eligibility requirements for the Van Duzer Corridor viticultural area. The establishment of the Van Duzer Corridor AVA will not affect any existing AVA, and any bottlers using ``Willamette Valley'' as an appellation of origin or in a brand name for wines made from grapes grown within the Willamette Valley AVA will not be affected by the establishment of this new AVA. The establishment of the Van Duzer Corridor AVA will allow vintners to use ``Van Duzer Corridor'' and ``Willamette Valley'' as appellations of origin for wines made primarily from grapes grown within the Van Duzer Corridor 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 Kaori Flores 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. Amend Sec. 9.202 by revising paragraphs (c)(1), (12), (13), (15), and (16) to read as follows: Sec. 9.202 Eola-Amity Hills. * * * * * (c) * * * (1) The beginning point is on the Rickreall, Oregon, map at the intersection of State Highway 22 and Rickreall Road, near the Oak Knoll Golf Course, in section 50, T7S, R4W; * * * * * (12) Follow Old Bethel Road, which becomes Oak Grove Road, south until the road intersects the 200-foot contour line approximately 400 feet north of Oak Grove Road's northern intersection with [[Page 64280]] Zena Road, just northwest of Bethel; then (13) Follow the 200-foot contour line easterly and then southerly until its first intersection with Zena Road, and then follow Zena Road west approximately 0.25 mile to its southern intersection with Oak Grove Road, south of Bethel; then * * * * * (15) Follow Frizzell Road west for approximately 0.25 mile to its first intersection with the 200-foot contour line, then (16) Follow the 200-foot contour line generally south, crossing onto the Rickreall, Oregon, map, until the contour line intersects the beginning point. 0 3. Subpart C is amended by adding Sec. 9.265 to read as follows: Sec. 9.265 Van Duzer Corridor. (a) Name. The name of the viticultural area described in this section is ``Van Duzer Corridor''. For purposes of part 4 of this chapter, ``Van Duzer Corridor'' is a term of viticultural significance. (b) Approved maps. The five United States Geological Survey (USGS) 1:24,000 scale topographic maps used to determine the boundary of the Van Duzer Corridor viticultural area are titled: (1) Sheridan, Oreg., 1956; revised 1992; (2) Ballston, Oreg., 1956; revised 1992; (3) Dallas, Oreg., 1974; photorevised 1986; (4) Amity, Oreg., 1957; revised 1993; and (5) Rickreall, Oreg., 1969; photorevised 1976; (c) Boundary. The Van Duzer Corridor viticultural area is located in Polk and Yamhill Counties, in Oregon. The boundary of the Van Duzer Corridor viticultural area is as described below: (1) The beginning point is on the Sheridan map at the intersection of State Highway 22 and Red Prairie Road. From the beginning point, proceed southeasterly along State Highway 22 for a total of 12.4 miles, crossing over the Ballston and Dallas maps and onto the Rickreall map, to the intersection of the highway with the 200-foot elevation contour west of the Oak Knoll Golf Course; then (2) Proceed north on the 200-foot elevation contour, crossing onto the Amity map, to the third intersection of the elevation contour with Frizzell Road; then (3) Proceed east on Frizzell Road for 0.3 mile to the intersection of the road with Oak Grove Road; then (4) Proceed north along Oak Grove Road for 1.7 miles to the intersection of the road with Zena Road; then (5) Proceed east on Zena Road for approximately 0.25 mile to the second intersection of the road with the 200-foot elevation contour; then (6) Proceed northwest along the 200-foot elevation contour to the intersection of the elevation contour with Oak Grove Road; then (7) Proceed north along Oak Grove Road (which becomes Old Bethel Road) approximately 7.75 miles to the intersection of the road with Patty Lane; then (8) Proceed west in a straight line for a total of 10.8 miles, crossing over the Ballston map and onto the Sheridan map, to the intersection of the line with State Highway 18; then (9) Proceed southwest along State Highway 18 for 0.3 miles to the intersection of the highway with Red Prairie Road; then (10) Proceed south along Red Prairie Road for approximately 5.3 miles, returning to the beginning point. Signed: October 9, 2018. John J. Manfreda, Administrator. Approved: December 4, 2018. Timothy E. Skud, Deputy Assistant Secretary (Tax, Trade, and Tariff Policy). [FR Doc. 2018-27017 Filed 12-13-18; 8:45 am] BILLING CODE 4810-31-P
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boundary, and distinguishing features obtain approval of a new label. Authority: 27 U.S.C. 205.
for the proposed expansion area. For a Similarly, if the AVA name appears in
detailed description of the evidence another reference on the label in a Subpart C—Approved American
relating to the name, boundary, and misleading manner, the bottler would Viticultural Areas
distinguishing features of the proposed have to obtain approval of a new label.
■ 2. Section 9.59 is amended by revising
expansion area, and for a comparison of Different rules apply if a wine has a
paragraphs (c) introductory text and
the distinguishing features of the brand name containing an AVA name
(c)(1), redesignating paragraphs (c)(2)
proposed expansion area to the that was used as a brand name on a
through (c)(21) as paragraphs (c)(3)
surrounding areas and to the established label approved before July 7, 1986. See
through (c)(22), and adding new
Arroyo Seco AVA, see Notice No. 172. § 4.39(i)(2) of the TTB regulations (27
In Notice No. 172, TTB solicited paragraph (c)(2) to read as follows:
CFR 4.39(i)(2)) for details.
comments on the accuracy of the name, The expansion of the Arroyo Seco § 9.59 Arroyo Seco.
boundary, climatic, and other required AVA will not affect any other existing * * * * *
information submitted in support of the AVA, and bottlers using ‘‘Arroyo Seco,’’ (c) Boundaries. The Arroyo Seco
petition. The comment period closed on ‘‘Monterey,’’ or ‘‘Central Coast’’ as an viticultural area is located in Monterey
June 5, 2018. appellation of origin or in a brand name County, California. The beginning point
TTB received no comments in for wines made from grapes within the is found on the ‘‘Sycamore Flat’’
response to Notice No. 172. ‘‘Arroyo Seco,’’ ‘‘Monterey,’’ or ‘‘Central U.S.G.S. map at the intersection of
TTB Determination Coast’’ AVAs will not be affected by this Jamesburg Road (known locally as
expansion of the Arroyo Seco AVA. The Carmel Valley Road) and Arroyo Seco
After careful review of the petition, expansion of the Arroyo Seco AVA will
TTB finds that the evidence provided by Road, near the intersection of sections
allow vintners to use ‘‘Arroyo Seco,’’ 21, 22, 28, and 27, T.19 S., R. 5 E. From
the petitioner sufficiently demonstrates ‘‘Monterey,’’ or ‘‘Central Coast’’ as an
that although the proposed expansion the beginning point, proceed
appellation of origin for wines made southwesterly along Arroyo Seco Road
area shares some of the broader primarily from grapes grown within the
characteristics of the larger Monterey to its intersection with Piney Creek.
expansion area if the wines meet the (1) Then southeasterly along Piney
and Central Coast AVAs, it is also eligibility requirements for the
similar to the established Arroyo Seco Creek to its confluence with the Arroyo
appellation. Seco in section 27, T. 19 S., R. 5 E.
AVA and should also be recognized as
part of that AVA. Accordingly, under Regulatory Flexibility Act (2) Then northerly along the Arroyo
the authority of the FAA Act, section Seco to its intersection with the
TTB certifies that this regulation will southern boundary of section 22, T. 19
1111(d) of the Homeland Security Act of not have a significant economic impact
2002, and part 4 of the TTB regulations, S., R 5 E.
on a substantial number of small
TTB expands the 18,240 acre ‘‘Arroyo entities. The regulation imposes no new * * * * *
Seco’’ AVA to include the reporting, recordkeeping, or other Signed: September 19, 2018.
approximately 90-acre expansion area as administrative requirement. Any benefit John J. Manfreda,
described in Notice No. 172, effective 30 derived from the use of an AVA name Administrator.
days from the publication date of this would be the result of a proprietor’s Approved: December 4, 2018.
document. efforts and consumer acceptance of Timothy E. Skud,
Boundary Description wines from that area. Therefore, no Deputy Assistant Secretary (Tax, Trade, and
regulatory flexibility analysis is Tariff Policy).
See the narrative description of the required.
boundary of the AVA expansion in the [FR Doc. 2018–27014 Filed 12–13–18; 8:45 am]
regulatory text published at the end of Executive Order 12866 BILLING CODE P
this final rule. It has been determined that this rule
Maps is not a significant regulatory action as DEPARTMENT OF THE TREASURY
defined by Executive Order 12866 of
The petitioner provided the required
September 30, 1993. Therefore, no Alcohol and Tobacco Tax and Trade
maps, and they are listed in the
regulatory assessment is required. Bureau
regulatory text of 27 CFR 9.59.
Drafting Information
Impact on Current Wine Labels 27 CFR Part 9
Part 4 of the TTB regulations prohibits Christopher Forster-Smith of the
Regulations and Rulings Division [Docket No. TTB–2018–0006; T.D. TTB–155;
any label reference on a wine that Ref: Notice No. 175]
indicates or implies an origin other than drafted this final rule.
the wine’s true place of origin. For a List of Subjects in 27 CFR Part 9 RIN 1513–AC39
wine to be labeled with an AVA name
Wine. Establishment of the Van Duzer
or with a brand name that includes an
Corridor Viticultural Area and
AVA name, at least 85 percent of the The Regulatory Amendment
Clarification of the Eola-Amity Hills
wine must be derived from grapes For the reasons discussed in the Viticultural Area Boundary Description
grown within the area represented by preamble, TTB amends title 27, chapter
that name, and the wine must meet the I, part 9, Code of Federal Regulations, as AGENCY: Alcohol and Tobacco Tax and
other conditions listed in § 4.25(e)(3) of Trade Bureau, Treasury.
amozie on DSK3GDR082PROD with RULES
follows:
the TTB regulations (27 CFR 4.25(e)(3)). ACTION: Final rule; Treasury decision.
If the wine is not eligible for labeling PART 9—AMERICAN VITICULTURAL
with an AVA name and that name AREAS SUMMARY: The Alcohol and Tobacco Tax
appears in the brand name, then the and Trade Bureau (TTB) establishes the
label is not in compliance, and the ■ 1. The authority citation for part 9 approximately 59,871-acre ‘‘Van Duzer
bottler must change the brand name and continues to read as follows: Corridor’’ viticultural area in Polk and
VerDate Sep<11>2014 16:07 Dec 13, 2018 Jkt 247001 PO 00000 Frm 00054 Fmt 4700 Sfmt 4700 E:\FR\FM\14DER1.SGM 14DER1](https://thefederalregister.org/doc/83_FR_64516/page/1.svg)
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Zena Road, just northwest of Bethel; (4) Proceed north along Oak Grove pension insurance system administered
then Road for 1.7 miles to the intersection of by PBGC.
(13) Follow the 200-foot contour line the road with Zena Road; then DATES: Effective January 1, 2019.
easterly and then southerly until its first (5) Proceed east on Zena Road for
FOR FURTHER INFORMATION CONTACT:
intersection with Zena Road, and then approximately 0.25 mile to the second
follow Zena Road west approximately intersection of the road with the 200- Melissa Rifkin (rifkin.melissa@
0.25 mile to its southern intersection foot elevation contour; then PBGC.gov), Attorney, Regulatory Affairs
with Oak Grove Road, south of Bethel; (6) Proceed northwest along the 200- Division, Pension Benefit Guaranty
then foot elevation contour to the Corporation, 1200 K Street NW,
intersection of the elevation contour Washington, DC 20005, 202–326–4400,
* * * * * ext. 6563. (TTY users may call the
(15) Follow Frizzell Road west for with Oak Grove Road; then
(7) Proceed north along Oak Grove Federal relay service toll free at 1–800–
approximately 0.25 mile to its first 877–8339 and ask to be connected to
intersection with the 200-foot contour Road (which becomes Old Bethel Road)
approximately 7.75 miles to the 202–326–4400, ext. 6563.)
line, then
(16) Follow the 200-foot contour line intersection of the road with Patty Lane; SUPPLEMENTARY INFORMATION: PBGC’s
generally south, crossing onto the then regulations on Allocation of Assets in
Rickreall, Oregon, map, until the (8) Proceed west in a straight line for Single-Employer Plans (29 CFR part
contour line intersects the beginning a total of 10.8 miles, crossing over the 4044) and Benefits Payable in
point. Ballston map and onto the Sheridan Terminated Single-Employer Plans (29
map, to the intersection of the line with CFR part 4022) prescribe actuarial
■ 3. Subpart C is amended by adding
State Highway 18; then assumptions—including interest
§ 9.265 to read as follows:
(9) Proceed southwest along State assumptions—for valuing and paying
§ 9.265 Van Duzer Corridor. Highway 18 for 0.3 miles to the plan benefits under terminating single-
(a) Name. The name of the viticultural intersection of the highway with Red employer plans covered by title IV of
area described in this section is ‘‘Van Prairie Road; then the Employee Retirement Income
Duzer Corridor’’. For purposes of part 4 (10) Proceed south along Red Prairie Security Act of 1974 (ERISA). The
of this chapter, ‘‘Van Duzer Corridor’’ is Road for approximately 5.3 miles, interest assumptions in the regulations
a term of viticultural significance. returning to the beginning point. are also published on PBGC’s website
(b) Approved maps. The five United Signed: October 9, 2018.
(http://www.pbgc.gov).
States Geological Survey (USGS) John J. Manfreda,
The interest assumptions in appendix
1:24,000 scale topographic maps used to B to part 4044 are used to value benefits
Administrator.
determine the boundary of the Van for allocation purposes under ERISA
Approved: December 4, 2018. section 4044. PBGC uses the interest
Duzer Corridor viticultural area are
Timothy E. Skud, assumptions in appendix B to part 4022
titled:
(1) Sheridan, Oreg., 1956; revised Deputy Assistant Secretary (Tax, Trade, and to determine whether a benefit is
Tariff Policy). payable as a lump sum and to determine
1992;
[FR Doc. 2018–27017 Filed 12–13–18; 8:45 am] the amount to pay. Appendix C to part
(2) Ballston, Oreg., 1956; revised
1992; BILLING CODE 4810–31–P 4022 contains interest assumptions for
(3) Dallas, Oreg., 1974; photorevised private-sector pension practitioners to
1986; refer to if they wish to use lump-sum
(4) Amity, Oreg., 1957; revised 1993; PENSION BENEFIT GUARANTY interest rates determined using PBGC’s
and CORPORATION historical methodology. Currently, the
(5) Rickreall, Oreg., 1969; rates in appendices B and C of the
photorevised 1976; 29 CFR Parts 4022 and 4044 benefit payment regulation are the same.
(c) Boundary. The Van Duzer Corridor The interest assumptions are intended
Allocation of Assets in Single- to reflect current conditions in the
viticultural area is located in Polk and
Employer Plans; Benefits Payable in financial and annuity markets.
Yamhill Counties, in Oregon. The
Terminated Single-Employer Plans; Assumptions under the asset allocation
boundary of the Van Duzer Corridor
Interest Assumptions for Valuing and regulation are updated quarterly;
viticultural area is as described below:
Paying Benefits assumptions under the benefit payments
(1) The beginning point is on the
Sheridan map at the intersection of AGENCY: Pension Benefit Guaranty regulation are updated monthly. This
State Highway 22 and Red Prairie Road. Corporation. final rule updates the benefit payments
From the beginning point, proceed ACTION: Final rule.
interest assumptions for January 2019
southeasterly along State Highway 22 and updates the asset allocation interest
for a total of 12.4 miles, crossing over SUMMARY: This final rule amends the assumptions for the first quarter
the Ballston and Dallas maps and onto Pension Benefit Guaranty Corporation’s (January through March) of 2019.
the Rickreall map, to the intersection of regulations on Benefits Payable in The first quarter 2019 interest
the highway with the 200-foot elevation Terminated Single-Employer Plans and assumptions under the allocation
contour west of the Oak Knoll Golf Allocation of Assets in Single-Employer regulation will be 3.09 percent for the
Course; then Plans to prescribe interest assumptions first 20 years following the valuation
(2) Proceed north on the 200-foot under the benefit payments regulation date and 2.84 percent thereafter. In
elevation contour, crossing onto the for valuation dates in January 2019 and comparison with the interest
amozie on DSK3GDR082PROD with RULES
Amity map, to the third intersection of interest assumptions under the asset assumptions in effect for the fourth
the elevation contour with Frizzell allocation regulation for valuation dates quarter of 2018, these interest
Road; then in the first quarter of 2019. The interest assumptions represent no change in the
(3) Proceed east on Frizzell Road for assumptions are used for valuing and select period (the period during which
0.3 mile to the intersection of the road paying benefits under terminating the select rate (the initial rate) applies),
with Oak Grove Road; then single-employer plans covered by the an increase of 0.25 percent in the select
VerDate Sep<11>2014 16:07 Dec 13, 2018 Jkt 247001 PO 00000 Frm 00058 Fmt 4700 Sfmt 4700 E:\FR\FM\14DER1.SGM 14DER1](https://thefederalregister.org/doc/83_FR_64516/page/5.svg)
Document Created: 2018-12-14 03:49:36
Document Modified: 2018-12-14 03:49:36
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Final rule; Treasury decision. | |
| Dates | This final rule is effective January 14, 2019. | |
| Contact | Kaori Flores, 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. 3190. | |
| FR Citation | 83 FR 64276 | |
| RIN Number | 1513-AC39 |
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