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Federal Register / Vol. 86, No. 215 / Wednesday, November 10, 2021 / Rules and Regulations
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.
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 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 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 provides that any interested party
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may 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 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;
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 A detailed narrative description of the proposed AVA boundary based on USGS map markings.
Verde Valley AVA Petition TTB received a petition from the Verde Valley Wine Consortium, on behalf of local grape growers and winemakers, proposing the establishment of the Verde Valley AVA in Yavapai County, Arizona. The proposed Verde Valley AVA covers approximately 200 square miles and is not located within any other AVA.
There are 24 commercially-producing vineyards covering a total of approximately 125 acres within the proposed AVA, as well as 11 wineries.
The petition states that an additional 40
acres of vineyards are planned for planting in the next few years.
According to the petition, the distinguishing features of the proposed Verde Valley AVA are its climate, soils, and topography.
The petition states that the proposed Verde Valley AVA has an average annual rainfall amount that is significantly lower than in the surrounding regions. Due to the low rainfall, vineyard owners within the proposed AVA must use irrigation to ensure adequate hydration for their vines. Additionally, temperatures within the proposed Verde Valley AVA
are warmer than in each of the surrounding regions and provide suitable heat and sunlight for photosynthesis. The petition also states that the difference between daytime high temperatures and nighttime low temperatures within the proposed AVA

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can exceed 30 degrees F, which is a greater difference than found in any of the surrounding regions. Such a significant drop in nighttime temperatures delays grape ripening, lessens the respiration of acids, and increases phenolic development in the grapes.
According to the petition, the proposed Verde Valley AVA is composed of alluvial soils while the surrounding areas consist of stony soils.
The high bicarbonate levels in the groundwater of the proposed AVA
increase pH within the soil in the proposed AVA, which inhibits nutrient uptake in the vines. However, the petition states that these unfavorable vineyard conditions can be mitigated through rootstock, varietal, and clonal selection that can tolerate and even benefit from these nutrient deficiencies.
The petition also states that the proposed Verde Valley AVA consists of gentle slopes and elevations ranging between 3,000 feet and 5,000 feet. By contrast, the surrounding regions have steep slopes with elevations up to 8,000
feet. The lower elevation of the proposed AVA results in cold air drainage from the higher elevations of the surrounding areas and an increased risk of frost damage. Vineyard owners attempt to mitigate this risk by using inversion fans, protective sprays, and planting late-budding varietals of grapes.
Notice of Proposed Rulemaking and Comments Received TTB published Notice No. 187 in the Federal Register on February 28, 2020
85 FR 11894, proposing to establish the Verde Valley 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. 187.
In Notice No. 187, 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 April 28, 2020.
Comments Received In response to Notice No. 187, TTB
received a total of eight comments.
Commenters included local residents, wine consumers, and other members of
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