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Federal Register / Vol. 86, No. 124 / Thursday, July 1, 2021 / Rules and Regulations DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade Bureau 27 CFR Part 9
Docket No. TTB20200014; T.D. TTB171;
Ref: Notice No. 199
RIN 1513AC65

Establishment of the Ulupalakua Viticultural Area Alcohol and Tobacco Tax and Trade Bureau, Treasury.
ACTION: Final rule; Treasury decision.
AGENCY:

The Alcohol and Tobacco Tax and Trade Bureau TTB establishes the approximately 70-acre Ulupalakua viticultural area AVA on the island of Maui, Hawaii. The Ulupalakua viticultural area is not located within, nor does it contain, any other established viticultural area. TTB
designates viticultural areas to allow vintners to better describe the origin of their wines and to allow consumers to better identify wines they may purchase.

SUMMARY:

This final rule is effective August 2, 2021.
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 2024531039, ext. 175.
SUPPLEMENTARY INFORMATION:
DATES:

Background on Viticultural Areas
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TTB Authority Section 105e of the Federal Alcohol Administration Act FAA Act, 27
U.S.C. 205e, 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 1111d of the Homeland Security Act of 2002, codified at 6 U.S.C. 531d. The Secretary has delegated the functions and duties in the administration and enforcement of these provisions to the TTB Administrator through Treasury Order 12001, dated December 10, 2013
superseding Treasury Order 12001, dated January 24, 2003.

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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 4.25e1i of the TTB
regulations 27 CFR 4.25e1i defines a viticultural area for American wine as a delimited grape-growing region having distinguishing features as described in part 9 of the regulations and, once approved, a name and a delineated boundary codified in part 9 of the regulations. These designations allow vintners and consumers to attribute a given quality, reputation, or other characteristic of a wine made from grapes grown in an area to the wines 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 4.25e2 of the TTB
regulations 27 CFR 4.25e2 outlines the procedure for proposing an AVA
and allows any interested party to petition TTB to establish a grapegrowing region as an AVA. Section 9.12
of the TTB regulations 27 CFR 9.12
prescribes standards for petitions to establish or modify AVAs. Petitions to establish an AVA must include the following:
Evidence that the area within the proposed AVA boundary is nationally or locally known by the AVA name specified in the petition;
An explanation of the basis for defining the boundary of the proposed AVA;
A narrative description of the features of the proposed AVA affecting viticulture, such as climate, geology, soils, physical features, and elevation, that make the proposed AVA distinctive and distinguish it from adjacent areas outside the proposed AVA boundary;
The appropriate United States Geological Survey USGS maps showing the location of the proposed AVA, with the boundary of the proposed AVA clearly drawn thereon;
and
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A detailed narrative description of the proposed AVA boundary based on USGS map markings.
Ulupalakua AVA Petition TTB received a petition from Mark Beaman, winemaker at Maui Wines, proposing the establishment of the Ulupalakua AVA. The proposed AVA
is located within the privately-owned, 18,000-acre Ulupalakua Ranch on the island of Maui, Hawaii. The proposed AVA contains approximately 70 acres, with approximately 16 acres of vineyards. Although there is no winery within the boundary of the proposed AVA, grapes from the proposed AVA
are made into wine at the Maui Wines facility, which is a short distance south of the proposed AVA. According to the petition, the distinguishing features of the proposed Ulupalakua AVA include its topography, soils, and climate.
The proposed Ulupalakua AVA
contains a series of four distinct benches that are oriented to the southwest. The benches are gently sloped, with slope angles between 0 and 5 percent, and are separated by steeper erosional ravines.
The petition states that the gentle slopes of the benches minimize the risk of erosion, facilitate safe agriculture, and allow vineyards planted on the benches to receive uniform amounts of sunlight, rainfall, and temperature-moderating cloud cover. By contrast, the surrounding regions all contain steeper slopes. The petition notes that the regions to the north, west, and east of the proposed AVA have average slope angles of 15 to 17 percent. The petition also notes that the regions to the north and west of the proposed AVA contain more erosional features, such as ravines, which are less suitable for viticulture than gently sloping benches.
Furthermore, the region to the south of the proposed AVA contains rugged, exposed volcanic rocks that are not suitable for viticulture.
The soils of the proposed Ulupalakua AVA formed from the erosion of ancient alkali lava flows from Mt. Haleakala.
Kula loam makes up 80 percent of the soil of the proposed AVA and is derived from weathered basic igneous rocks.
The remaining 20 percent of the soils of the proposed AVA are comprised of the Io series, which are silt loams that gradually acquire more clay deeper in the soils. According to the petition, the soils of the proposed AVA are fertile enough to produce healthy vines and fruit without promoting excessive vine and leaf growth. Additionally, the uniformity of the soils within the proposed AVA results in a greater consistency in growing conditions for vineyards than can be found in the
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