Rule2021-18208
Modification of the Boundaries of the Santa Lucia Highlands and Arroyo Seco Viticultural Areas
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
August 25, 2021
Effective
September 24, 2021
Issuing agencies
Treasury DepartmentAlcohol and Tobacco Tax and Trade Bureau
Abstract
The Alcohol and Tobacco Tax and Trade Bureau (TTB) is modifying the boundaries of the "Santa Lucia Highlands" viticultural area and the adjacent "Arroyo Seco" viticultural area in Monterey County, California. The boundary modifications include two separate actions--removing approximately 376 acres from the Santa Lucia Highlands viticultural area, and removing 148 acres from the Arroyo Seco viticultural area and placing them entirely within the Santa Lucia Highlands viticultural area. The Santa Lucia Highlands and Arroyo Seco viticultural areas and the modification areas are located entirely within the existing Monterey and Central Coast viticultural areas. 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.
Full Text
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<title>Federal Register, Volume 86 Issue 162 (Wednesday, August 25, 2021)</title>
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[Federal Register Volume 86, Number 162 (Wednesday, August 25, 2021)]
[Rules and Regulations]
[Pages 47377-47380]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-18208]
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Rules and Regulations
Federal Register
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having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
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Federal Register / Vol. 86, No. 162 / Wednesday, August 25, 2021 /
Rules and Regulations
[[Page 47377]]
DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade Bureau
27 CFR Part 9
[Docket No. TTB-2020-0007; T.D. TTB-172; Ref: Notice No. 192]
RIN 1513-AC55
Modification of the Boundaries of the Santa Lucia Highlands and
Arroyo Seco Viticultural Areas
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) is
modifying the boundaries of the ``Santa Lucia Highlands'' viticultural
area and the adjacent ``Arroyo Seco'' viticultural area in Monterey
County, California. The boundary modifications include two separate
actions--removing approximately 376 acres from the Santa Lucia
Highlands viticultural area, and removing 148 acres from the Arroyo
Seco viticultural area and placing them entirely within the Santa Lucia
Highlands viticultural area. The Santa Lucia Highlands and Arroyo Seco
viticultural areas and the modification areas are located entirely
within the existing Monterey and Central Coast viticultural areas. 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 September 24, 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 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 the functions
and duties in the administration and enforcement of these provisions to
the TTB Administrator through Treasury Order 120-01, dated December 10,
2013 (superseding Treasury Order 120-01, 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 4.25(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 modify an AVA must include the following:
<bullet> In the case of an expansion in size of an AVA, evidence
that the proposed expansion area is nationally or locally known by the
name of the AVA into which it would be placed;
<bullet> In the case of a reduction in size of an AVA, an
explanation of the extent to which the current AVA name does not apply
to the excluded area;
<bullet> An explanation of the basis for defining the boundary of
the proposed areas to be realigned, including an explanation of how the
boundary of the existing AVA was incorrectly or incompletely defined or
is no longer accurate due to new evidence or changed circumstances;
<bullet> In the case of an expansion of an 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 expansion area similar to the AVA into which it would
be placed and distinguish it from adjacent areas outside the
established AVA;
<bullet> In the case of a reduction of an AVA, a narrative
description of the features of the proposed AVA affecting viticulture,
such as climate, geology, soils, physical features, and elevation, that
differentiate the proposed reduction area from the established AVA and
demonstrate a greater similarity to the features of adjacent areas
outside the established AVA;
<bullet> The appropriate United States Geological Survey (USGS)
map(s) showing the location of the proposed AVA boundary modifications,
with the proposed boundary modifications clearly drawn thereon; and
<bullet> A detailed narrative description of the proposed AVA
boundary modifications based on USGS map markings.
[[Page 47378]]
Santa Lucia Highlands-Arroyo Seco Boundary Modification Petition
TTB received a petition from Patrick Shabram on behalf of the Santa
Lucia Highlands Wine Artisans, proposing to modify the boundary of the
Santa Lucia Highlands AVA (27 CFR 9.139) and the adjacent Arroyo Seco
AVA (27 CFR 9.59). The Santa Lucia Highlands AVA and the Arroyo Seco
AVA are both located within Monterey County, California, and are both
located entirely within the established Monterey AVA (27 CFR 9.98) and
the Central Coast AVA (27 CFR 9.75). The proposed boundary
modifications include two separate actions--removing approximately 376
acres from the Santa Lucia Highlands viticultural area, and removing
148 acres from the Arroyo Seco viticultural area and placing them
entirely within the Santa Lucia Highlands viticultural area.
The first proposal would remove approximately 376 acres from the
northern part of the Santa Lucia Highlands AVA. The petition states
that the proposed reduction area is within the floodplain of the
Salinas River and that no vineyards are planted or proposed in this
location. The land removed from the Santa Lucia Highlands AVA would
remain within the Monterey AVA and the Central Coast AVA.
According to the petition, the topography and soils within the
proposed reduction area are more similar to those of the Monterey and
Central Coast AVAs than to the Santa Lucia Highlands AVA. For example,
the proposed reduction area is located in the floodplain of the Salinas
River, has little-to-no slope, and does not have a clear easterly
orientation. By contrast, the majority of the established Santa Lucia
Highlands AVA is located on a series of alluvial fans and terraces that
have a predominately eastern orientation and slope angles ranging from
5 to 30 percent. Additionally, the soils in the proposed reduction area
are primarily Psamments and Fluvents, which are suborders of Entisols
that are sandy and have little organic material. These soils are
uncommon in the remainder of the Santa Lucia Highlands AVA, where
Chualar loams are the most common soil, comprising almost 32 percent of
the total soils. Chualar loams are described as very deep, well-drained
soils formed in alluvial material from mixed rock sources.
The second proposed modification affects a portion of the shared
Santa Lucia Highlands-Arroyo Seco AVA boundary. The modification would
remove 148 acres of foothills terrain from the western side of the
Arroyo Seco AVA and place them entirely within the southeastern region
of the Santa Lucia Highlands. One vineyard containing approximately 135
acres of vines would be affected by this boundary realignment, and the
vineyard owner included a letter of support in the petition. The
modification would reduce the size of the Arroyo Seco AVA by less than
1 percent and would not have any impact on the boundaries of the
Monterey AVA or the Central Coast AVA.
The proposed realignment area is located on an alluvial fan with an
easterly orientation and slope angles above 5 percent. The petition
states that these topographic features are similar to the alluvial fans
found in the Santa Lucia Highlands AVA, whereas the majority of the
Arroyo Seco AVA has a gentler slope that gradually becomes nearly flat
and lacks an eastern orientation. The soils in the proposed realignment
area are mostly Placentia sandy loam, Chualar, and Arroyo Seco soils.
All three soils are found in both the Santa Lucia Highlands and Arroyo
Seco AVAs. However, the petition states that this combination of soils
is more commonly found within the Santa Lucia Highlands AVA, and
Placentia sandy loams are not common in the Arroyo Seco AVA outside of
the proposed realignment area.
Notice of Proposed Rulemaking and Comments Received
TTB published Notice No. 192 in the Federal Register on July 20,
2020 (85 FR 43754), proposing to modify the boundaries of the Santa
Lucia Highlands and Arroyo Seco AVAs. In the notice, TTB summarized the
evidence from the petition regarding the name, boundary, and
distinguishing features for the proposed reduction area and the
proposed realignment area. For a detailed description of the evidence
relating to the name, boundary, and distinguishing features of the
proposed boundary modification areas, see Notice No. 192.
The comment period for Notice No. 192 closed September 18, 2020. In
response to Notice No. 192, TTB received a total of eight comments.
However, two of the comments did not contain information related to the
proposed boundary modifications, or to the AVA program in general, and
were not posted to the public docket. All six comments that were posted
to the public docket supported the proposed boundary modifications to
the Santa Lucia Highlands and Arroyo Seco AVAs.
TTB Determination
After careful review of the petition and the comments received in
response to Notice No. 192, TTB finds that the evidence provided by the
petitioner supports the modifications of the boundaries of the Santa
Lucia Highlands and Arroyo Seco AVAs. 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 modifies the boundaries
of both AVAs effective 30 days from the publication date of this
document.
Boundary Description
See the narrative description of the boundary modifications of the
Santa Lucia Highlands and Arroyo Seco AVAs in the regulatory text
published at the end of this final rule.
Maps
The petitioners provided the required maps, and they are listed
below in the regulatory text. The modified Santa Lucia Highlands and
Arroyo Seco AVA boundaries may also be viewed on the AVA Map Explorer
on the TTB website, at <a href="https://www.ttb.gov/wine/ava-map-explorer">https://www.ttb.gov/wine/ava-map-explorer</a>.
Impact on Current Wine Labels and Transition Period
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 Sec.
4.25(e)(3) of the TTB regulations (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 Sec. 4.39(i)(2) of the TTB regulations (27 CFR 4.39(i)(2)) for
details.
The approval of the boundary realignments does not affect the
Monterey AVA or the Central Coast AVA. Bottlers using ``Monterey'' or
``Central Coast'' as an appellation of origin or in a brand name for
wines
[[Page 47379]]
made from grapes grown within the reduction area or the proposed
realignment area may continue to use those appellations of origin if
the wines meet the eligibility requirements for the appellation.
The modification of the northern Santa Lucia Highlands AVA boundary
means that wines produced mainly from grapes grown in the reduction
area may no longer be labeled with ``Santa Lucia Highlands'' as an
appellation of origin. However, TTB does not believe any label holders
will be affected by this boundary modification because the petition
states that no vineyards exist within the reduction area.
The realignment of the shared Santa Lucia Highlands-Arroyo Seco AVA
boundary allows vintners to use ``Santa Lucia Highlands,''
``Monterey,'' and ``Central Coast'' as appellations of origin for wines
made primarily from grapes grown within the realignment area if the
wines meet the eligibility requirements for these appellations. For
wines whose eligibility for the Arroyo Seco AVA designation depends on
the use of grapes grown in the realignment area, a label containing the
words ``Arroyo Seco'' may be used on wine bottled within 2 years from
the effective date of the final rule, provided that such label was
approved before the effective date of this final rule and that the wine
conforms to the standards for use of the label set forth in 27 CFR 4.25
or 4.39(i) in effect prior to this final rule. At the end of this 2-
year transition period, if the wine is produced primarily from grapes
grown in the realignment area, then a label containing the words
``Arroyo Seco'' in the brand name or as an appellation of origin would
not be permitted on the label. This transition period is described in
the regulatory text of this final rule. TTB believes that the 2-year
transition period should provide affected label holders with adequate
time to use up any old labels.
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. Section 9.59 is amended by:
0
a. Removing paragraphs (c)(12) and (13);
0
b. Redesignating paragraphs (c)(14) through (21) as paragraphs (c)(17)
through (24); and
0
c. Adding new paragraphs (c)(12) through (16) and (d).
The additions read as follows:
Sec. 9.59 Arroyo Seco.
* * * * *
(c) * * *
(12) Then south following Paraiso Road to its intersection with an
unnamed, light-duty road north of Clark Road in Section 20, T18S/R6E.
(13) Then east-southeast along the unnamed road for 0.3 mile to its
intersection with an intermittent stream.
(14) Then southwesterly along the intermittent stream for 0.2 mile
to its intersection with the western boundary of Section 21, T18S/R6E.
(15) Then south-southwest in a straight line for approximately 0.3
mile to the intersection of Clark Road and the southern boundary of
Section 21, T18S/R6E.
(16) Then west-southwest along Clark Road for 0.2 mile to its
intersection with an unnamed, light-duty road.
* * * * *
(d) Transition period. A label containing the words ``Arroyo Seco''
in the brand name or as an appellation of origin approved prior to
September 24, 2021 may be used on wine bottled before August 25, 2023,
if the wine conforms to the standards for use of the label set forth in
Sec. 4.25 or Sec. 4.39(i) of this chapter in effect prior to
September 24, 2021.
0
3. Section 9.139 is amended by:
0
a. Redesignating paragraphs (c)(10) through (22) as paragraphs (c)(18)
through (30);
0
b. Revising paragraphs (c)(1) through (9); and
0
c. Adding new paragraphs (c)(10) through (17).
The revisions and additions read as follows:
Sec. 9.139 Santa Lucia Highlands.
* * * * *
(c) * * *
(1) From the beginning point, the boundary follows Limekiln Creek
for approximately 1.2 miles northeast to the 120-foot elevation
contour.
(2) Then following the 120-foot elevation contour in a general
southeasterly direction for approximately 0.9 mile to where it
intersects with River Road.
(3) Then following River Road in a southeasterly direction for 0.3
mile to its intersection with an unimproved road near the marked 130-
foot elevation.
(4) Then follow a straight line southeast to the terminus of the
110-foot elevation contour.
(5) Then follow a straight line southeast 0.9 mile, crossing onto
the Gonzales map, to the Salinas River.
(6) Then follow the Salinas River in a south-southeast direction
0.7 mile, crossing onto the Palo Escrito map, to the intersection of
the Salinas River and the 120-foot elevation contour.
(7) Then follow the 120-foot contour south for 1 mile, then
southeast to its intersection with River Road.
(8) Then follow River Road east for 0.1 mile to its intersection
with an unnamed, light-duty road.
(9) Then follow the unnamed road southeast for 0.2 mile to its
intersection with the 160-foot elevation contour.
(10) Then follow the 160-foot elevation contour southeasterly for
approximately 5.9 miles to its intersection with River Road.
(11) Then follow River Road southeasterly for approximately 1 mile
to the intersection of River, Fort Romie, and Foothill Roads.
(12) Then following Foothill Road in a southeasterly direction for
approximately 4 miles to the junction of Foothill Road and Paraiso
Roads on the Soledad map.
(13) Then follow Paraiso Road in a southerly direction, crossing
onto the Paraiso Springs map, to its intersection with an unnamed,
light-duty road north of Clark Road in Section 20, T18S/R6E.
(14) Then follow the unnamed road east-southeast for 0.3 mile to
its intersection with an intermittent stream.
(15) Then follow the intermittent stream in a southwesterly
direction for
[[Page 47380]]
0.2 mile to its intersection with the western boundary of Section 21,
T18S/R6E.
(16) Then follow a straight line south-southwest for 0.3 mile to
the intersection of Clark Road and the southern boundary of Section 21,
T18S/R6E.
(17) Then follow Clark Road west-southwest for 0.2 mile to its
intersection with an unnamed, light-duty road.
* * * * *
Signed: May 24, 2021.
Mary G. Ryan,
Administrator.
Approved: May 28, 2021.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and Tariff Policy).
[FR Doc. 2021-18208 Filed 8-24-21; 8:45 am]
BILLING CODE 4810-31-P
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