47377

Rules and Regulations Federal Register Vol. 86, No. 162

Wednesday, August 25, 2021

This section of the FEDERAL REGISTER Background on Viticultural Areas Requirements contains regulatory documents having general applicability and legal effect, most of which TTB Authority Section 4.25(e)(2) of the TTB are keyed to and codified in the Code of Section 105(e) of the Federal Alcohol regulations (27 CFR 4.25(e)(2)) outlines Federal Regulations, which is published under Administration Act (FAA Act), 27 the procedure for proposing an AVA 50 titles pursuant to 44 U.S.C. 1510. U.S.C. 205(e), authorizes the Secretary and provides that any interested party The Code of Federal Regulations is sold by of the Treasury to prescribe regulations may petition TTB to establish a grape- the Superintendent of Documents. for the labeling of wine, distilled spirits, growing region as an AVA. Section 9.12 and malt beverages. The FAA Act of the TTB regulations (27 CFR 9.12) provides that these regulations should, prescribes standards for petitions for the DEPARTMENT OF THE TREASURY among other things, prohibit consumer establishment or modification of AVAs. deception and the use of misleading Petitions to modify an AVA must Alcohol and Tobacco Tax and Trade statements on labels and ensure that include the following: Bureau labels provide the consumer with • In the case of an expansion in size adequate information as to the identity of an AVA, evidence that the proposed 27 CFR Part 9 and quality of the product. The Alcohol expansion area is nationally or locally and Tobacco Tax and Trade Bureau known by the name of the AVA into [Docket No. TTB–2020–0007; T.D. TTB–172; (TTB) administers the FAA Act which it would be placed; pursuant to section 1111(d) of the Ref: Notice No. 192] • Homeland Security Act of 2002, In the case of a reduction in size of an AVA, an explanation of the extent to RIN 1513–AC55 codified at 6 U.S.C. 531(d). The Secretary has delegated the functions which the current AVA name does not Modification of the Boundaries of the and duties in the administration and apply to the excluded area; Santa Lucia Highlands and Arroyo enforcement of these provisions to the • An explanation of the basis for Seco Viticultural Areas TTB Administrator through Treasury defining the boundary of the proposed Order 120–01, dated December 10, 2013 areas to be realigned, including an AGENCY: Alcohol and Tobacco Tax and (superseding Treasury Order 120–01, explanation of how the boundary of the Trade Bureau, Treasury. dated January 24, 2003). existing AVA was incorrectly or ACTION: Final rule; Treasury decision. Part 4 of the TTB regulations (27 CFR incompletely defined or is no longer part 4) authorizes TTB to establish accurate due to new evidence or SUMMARY: The Alcohol and Tobacco Tax definitive viticultural areas and regulate changed circumstances; and Trade Bureau (TTB) is modifying the use of their names as appellations of • the boundaries of the ‘‘Santa Lucia origin on wine labels and in wine In the case of an expansion of an Highlands’’ viticultural area and the advertisements. Part 9 of the TTB AVA, a narrative description of the adjacent ‘‘Arroyo Seco’’ viticultural area regulations (27 CFR part 9) sets forth features of the proposed AVA affecting in Monterey County, California. The standards for the preparation and viticulture, such as climate, geology, boundary modifications include two submission to TTB of petitions for the soils, physical features, and elevation, separate actions—removing establishment or modification of that make the proposed expansion area approximately 376 acres from the Santa American viticultural areas (AVAs) and similar to the AVA into which it would Lucia Highlands viticultural area, and lists the approved AVAs. be placed and distinguish it from removing 148 acres from the Arroyo adjacent areas outside the established Definition Seco viticultural area and placing them AVA; entirely within the Santa Lucia Section 4.25(e)(1)(i) of the TTB • In the case of a reduction of an Highlands viticultural area. The Santa regulations (27 CFR 4.25(e)(1)(i)) defines AVA, a narrative description of the Lucia Highlands and Arroyo Seco a viticultural area for American wine as features of the proposed AVA affecting viticultural areas and the modification a delimited grape-growing region having viticulture, such as climate, geology, areas are located entirely within the distinguishing features, as described in soils, physical features, and elevation, existing Monterey and Central Coast part 9 of the regulations, and a name that differentiate the proposed reduction viticultural areas. TTB designates and a delineated boundary, as area from the established AVA and viticultural areas to allow vintners to established in part 9 of the regulations. demonstrate a greater similarity to the better describe the origin of their wines These designations allow vintners and features of adjacent areas outside the and to allow consumers to better consumers to attribute a given quality, established AVA; identify wines they may purchase. reputation, or other characteristic of a • wine made from grapes grown in an area The appropriate United States DATES: This final rule is effective to the wine’s geographic origin. The Geological Survey (USGS) map(s) September 24, 2021. establishment of AVAs allows vintners showing the location of the proposed FOR FURTHER INFORMATION CONTACT: to describe more accurately the origin of AVA boundary modifications, with the Karen A. Thornton, Regulations and their wines to consumers and helps proposed boundary modifications Rulings Division, Alcohol and Tobacco consumers to identify wines they may clearly drawn thereon; and Tax and Trade Bureau, 1310 G Street purchase. Establishment of an AVA is • A detailed narrative description of NW, Box 12, Washington, DC 20005; neither an approval nor an endorsement the proposed AVA boundary phone 202–453–1039, ext. 175. by TTB of the wine produced in that modifications based on USGS map SUPPLEMENTARY INFORMATION: area. markings.

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Santa Lucia Highlands-Arroyo Seco from the western side of the Arroyo TTB Determination Boundary Modification Petition Seco AVA and place them entirely After careful review of the petition TTB received a petition from Patrick within the southeastern region of the and the comments received in response Shabram on behalf of the Santa Lucia Santa Lucia Highlands. One vineyard to Notice No. 192, TTB finds that the Highlands Wine Artisans, proposing to containing approximately 135 acres of evidence provided by the petitioner modify the boundary of the Santa Lucia vines would be affected by this supports the modifications of the Highlands AVA (27 CFR 9.139) and the boundary realignment, and the vineyard boundaries of the Santa Lucia Highlands adjacent Arroyo Seco AVA (27 CFR owner included a letter of support in the and Arroyo Seco AVAs. Accordingly, 9.59). The Santa Lucia Highlands AVA petition. The modification would under the authority of the FAA Act, and the Arroyo Seco AVA are both reduce the size of the Arroyo Seco AVA section 1111(d) of the Homeland located within Monterey County, by less than 1 percent and would not Security Act of 2002, and parts 4 and 9 California, and are both located entirely have any impact on the boundaries of of the TTB regulations, TTB modifies within the established Monterey AVA the Monterey AVA or the Central Coast the boundaries of both AVAs effective (27 CFR 9.98) and the Central Coast AVA. 30 days from the publication date of this AVA (27 CFR 9.75). The proposed The proposed realignment area is document. located on an alluvial fan with an boundary modifications include two Boundary Description separate actions—removing easterly orientation and slope angles approximately 376 acres from the Santa above 5 percent. The petition states that See the narrative description of the Lucia Highlands viticultural area, and these topographic features are similar to boundary modifications of the Santa removing 148 acres from the Arroyo the alluvial fans found in the Santa Lucia Highlands and Arroyo Seco AVAs Seco viticultural area and placing them Lucia Highlands AVA, whereas the in the regulatory text published at the entirely within the Santa Lucia majority of the Arroyo Seco AVA has a end of this final rule. Highlands viticultural area. gentler slope that gradually becomes Maps The first proposal would remove nearly flat and lacks an eastern orientation. The soils in the proposed The petitioners provided the required approximately 376 acres from the maps, and they are listed below in the northern part of the Santa Lucia realignment area are mostly Placentia sandy loam, Chualar, and Arroyo Seco regulatory text. The modified Santa Highlands AVA. The petition states that Lucia Highlands and Arroyo Seco AVA the proposed reduction area is within soils. All three soils are found in both the Santa Lucia Highlands and Arroyo boundaries may also be viewed on the the floodplain of the Salinas River and AVA Map Explorer on the TTB website, that no vineyards are planted or Seco AVAs. However, the petition states that this combination of soils is more at https://www.ttb.gov/wine/ava-map- proposed in this location. The land explorer. removed from the Santa Lucia commonly found within the Santa Lucia Highlands AVA would remain within Highlands AVA, and Placentia sandy Impact on Current Wine Labels and the Monterey AVA and the Central loams are not common in the Arroyo Transition Period Coast AVA. Seco AVA outside of the proposed Part 4 of the TTB regulations prohibits According to the petition, the realignment area. any label reference on a wine that topography and soils within the Notice of Proposed Rulemaking and indicates or implies an origin other than proposed reduction area are more Comments Received the wine’s true place of origin. For a similar to those of the Monterey and wine to be labeled with an AVA name Central Coast AVAs than to the Santa TTB published Notice No. 192 in the or with a brand name that includes an Lucia Highlands AVA. For example, the Federal Register on July 20, 2020 (85 FR AVA name, at least 85 percent of the proposed reduction area is located in 43754), proposing to modify the wine must be derived from grapes the floodplain of the Salinas River, has boundaries of the Santa Lucia Highlands grown within the area represented by little-to-no slope, and does not have a and Arroyo Seco AVAs. In the notice, that name, and the wine must meet the clear easterly orientation. By contrast, TTB summarized the evidence from the other conditions listed in § 4.25(e)(3) of the majority of the established Santa petition regarding the name, boundary, the TTB regulations (27 CFR 4.25(e)(3)). Lucia Highlands AVA is located on a and distinguishing features for the If the wine is not eligible for labeling series of alluvial fans and terraces that proposed reduction area and the with an AVA name and that name have a predominately eastern proposed realignment area. For a appears in the brand name, then the orientation and slope angles ranging detailed description of the evidence label is not in compliance and the from 5 to 30 percent. Additionally, the relating to the name, boundary, and bottler must change the brand name and soils in the proposed reduction area are distinguishing features of the proposed obtain approval of a new label. primarily Psamments and Fluvents, boundary modification areas, see Notice Similarly, if the AVA name appears in which are suborders of Entisols that are No. 192. another reference on the label in a sandy and have little organic material. The comment period for Notice No. misleading manner, the bottler would These soils are uncommon in the 192 closed September 18, 2020. In have to obtain approval of a new label. remainder of the Santa Lucia Highlands response to Notice No. 192, TTB Different rules apply if a wine has a AVA, where Chualar loams are the most received a total of eight comments. brand name containing an AVA name common soil, comprising almost 32 However, two of the comments did not that was used as a brand name on a percent of the total soils. Chualar loams contain information related to the label approved before July 7, 1986. See are described as very deep, well-drained proposed boundary modifications, or to § 4.39(i)(2) of the TTB regulations (27 soils formed in alluvial material from the AVA program in general, and were CFR 4.39(i)(2)) for details. mixed rock sources. not posted to the public docket. All six The approval of the boundary The second proposed modification comments that were posted to the realignments does not affect the affects a portion of the shared Santa public docket supported the proposed Monterey AVA or the Central Coast Lucia Highlands-Arroyo Seco AVA boundary modifications to the Santa AVA. Bottlers using ‘‘Monterey’’ or boundary. The modification would Lucia Highlands and Arroyo Seco ‘‘Central Coast’’ as an appellation of remove 148 acres of foothills terrain AVAs. origin or in a brand name for wines

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made from grapes grown within the September 30, 1993. Therefore, no ■ 3. Section 9.139 is amended by: reduction area or the proposed regulatory assessment is required. ■ a. Redesignating paragraphs (c)(10) realignment area may continue to use through (22) as paragraphs (c)(18) Drafting Information those appellations of origin if the wines through (30); meet the eligibility requirements for the Karen A. Thornton of the Regulations ■ b. Revising paragraphs (c)(1) through appellation. and Rulings Division drafted this final (9); and The modification of the northern rule. ■ c. Adding new paragraphs (c)(10) Santa Lucia Highlands AVA boundary through (17). List of Subjects in 27 CFR Part 9 means that wines produced mainly from The revisions and additions read as grapes grown in the reduction area may Wine. follows: no longer be labeled with ‘‘Santa Lucia The Regulatory Amendment § 9.139 Santa Lucia Highlands. Highlands’’ as an appellation of origin. However, TTB does not believe any For the reasons discussed in the * * * * * label holders will be affected by this preamble, TTB amends title 27, chapter (c) * * * (1) From the beginning point, the boundary modification because the I, part 9, Code of Federal Regulations, as boundary follows Limekiln Creek for petition states that no vineyards exist follows: approximately 1.2 miles northeast to the within the reduction area. The realignment of the shared Santa PART 9—AMERICAN VITICULTURAL 120-foot elevation contour. Lucia Highlands–Arroyo Seco AVA AREAS (2) Then following the 120-foot boundary allows vintners to use ‘‘Santa elevation contour in a general ■ 1. The authority citation for part 9 southeasterly direction for Lucia Highlands,’’ ‘‘Monterey,’’ and continues to read as follows: ‘‘Central Coast’’ as appellations of origin approximately 0.9 mile to where it for wines made primarily from grapes Authority: 27 U.S.C. 205. intersects with River Road. (3) Then following River Road in a grown within the realignment area if the Subpart C—Approved American southeasterly direction for 0.3 mile to its wines meet the eligibility requirements Viticultural Areas intersection with an unimproved road for these appellations. For wines whose eligibility for the Arroyo Seco AVA near the marked 130-foot elevation. ■ 2. Section 9.59 is amended by: (4) Then follow a straight line designation depends on the use of ■ a. Removing paragraphs (c)(12) and southeast to the terminus of the 110-foot grapes grown in the realignment area, a (13); elevation contour. label containing the words ‘‘Arroyo ■ b. Redesignating paragraphs (c)(14) (5) Then follow a straight line Seco’’ may be used on wine bottled through (21) as paragraphs (c)(17) southeast 0.9 mile, crossing onto the within 2 years from the effective date of through (24); and Gonzales map, to the Salinas River. the final rule, provided that such label ■ c. Adding new paragraphs (c)(12) (6) Then follow the Salinas River in was approved before the effective date through (16) and (d). a south-southeast direction 0.7 mile, of this final rule and that the wine The additions read as follows: crossing onto the Palo Escrito map, to conforms to the standards for use of the § 9.59 Arroyo Seco. the intersection of the Salinas River and label set forth in 27 CFR 4.25 or 4.39(i) the 120-foot elevation contour. in effect prior to this final rule. At the * * * * * (7) Then follow the 120-foot contour (c) * * * end of this 2-year transition period, if south for 1 mile, then southeast to its (12) Then south following Paraiso the wine is produced primarily from intersection with River Road. Road to its intersection with an grapes grown in the realignment area, (8) Then follow River Road east for unnamed, light-duty road north of Clark then a label containing the words 0.1 mile to its intersection with an Road in Section 20, T18S/R6E. ‘‘Arroyo Seco’’ in the brand name or as unnamed, light-duty road. an appellation of origin would not be (13) Then east-southeast along the (9) Then follow the unnamed road permitted on the label. This transition unnamed road for 0.3 mile to its southeast for 0.2 mile to its intersection period is described in the regulatory text intersection with an intermittent stream. with the 160-foot elevation contour. of this final rule. TTB believes that the (14) Then southwesterly along the (10) Then follow the 160-foot 2-year transition period should provide intermittent stream for 0.2 mile to its elevation contour southeasterly for affected label holders with adequate intersection with the western boundary approximately 5.9 miles to its time to use up any old labels. of Section 21, T18S/R6E. intersection with River Road. (15) Then south-southwest in a (11) Then follow River Road Regulatory Flexibility Act straight line for approximately 0.3 mile southeasterly for approximately 1 mile TTB certifies that this regulation will to the intersection of Clark Road and the to the intersection of River, Fort Romie, not have a significant economic impact southern boundary of Section 21, T18S/ and Foothill Roads. on a substantial number of small R6E. (12) Then following Foothill Road in entities. The regulation imposes no new (16) Then west-southwest along Clark a southeasterly direction for reporting, recordkeeping, or other Road for 0.2 mile to its intersection with approximately 4 miles to the junction of administrative requirement. Any benefit an unnamed, light-duty road. Foothill Road and Paraiso Roads on the derived from the use of an AVA name * * * * * Soledad map. would be the result of a proprietor’s (d) Transition period. A label (13) Then follow Paraiso Road in a efforts and consumer acceptance of containing the words ‘‘Arroyo Seco’’ in southerly direction, crossing onto the wines from that area. Therefore, no the brand name or as an appellation of Paraiso Springs map, to its intersection regulatory flexibility analysis is origin approved prior to September 24, with an unnamed, light-duty road north required. 2021 may be used on wine bottled of Clark Road in Section 20, T18S/R6E. before August 25, 2023, if the wine (14) Then follow the unnamed road Executive Order 12866 conforms to the standards for use of the east-southeast for 0.3 mile to its It has been determined that this final label set forth in § 4.25 or § 4.39(i) of intersection with an intermittent stream. rule is not a significant regulatory action this chapter in effect prior to September (15) Then follow the intermittent as defined by Executive Order 12866 of 24, 2021. stream in a southwesterly direction for

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0.2 mile to its intersection with the U.S.C. 205(e), authorizes the Secretary establish an AVA must include the western boundary of Section 21, T18S/ of the Treasury to prescribe regulations following: R6E. for the labeling of wine, distilled spirits, • Evidence that the area within the (16) Then follow a straight line south- and malt beverages. The FAA Act proposed AVA boundary is nationally southwest for 0.3 mile to the provides that these regulations should, or locally known by the AVA name intersection of Clark Road and the among other things, prohibit consumer specified in the petition; southern boundary of Section 21, T18S/ deception and the use of misleading • An explanation of the basis for R6E. statements on labels and ensure that defining the boundary of the proposed (17) Then follow Clark Road west- labels provide the consumer with AVA; southwest for 0.2 mile to its intersection adequate information as to the identity • A narrative description of the with an unnamed, light-duty road. and quality of the product. The Alcohol features of the proposed AVA affecting * * * * * and Tobacco Tax and Trade Bureau viticulture, such as climate, geology, soils, physical features, and elevation, Signed: May 24, 2021. (TTB) administers the FAA Act pursuant to section 1111(d) of the that make the proposed AVA distinctive Mary G. Ryan, Homeland Security Act of 2002, and distinguish it from adjacent areas Administrator. codified at 6 U.S.C. 531(d). The outside the proposed AVA boundary; • Approved: May 28, 2021. Secretary has delegated the functions The appropriate United States Timothy E. Skud, and duties in the administration and Geological Survey (USGS) map(s) Deputy Assistant Secretary (Tax, Trade, and enforcement of these provisions to the showing the location of the proposed Tariff Policy). TTB Administrator through Treasury AVA, with the boundary of the [FR Doc. 2021–18208 Filed 8–24–21; 8:45 am] Order 120–01, dated December 10, 2013 proposed AVA clearly drawn thereon; (superseding Treasury Order 120–01, and BILLING CODE 4810–31–P • dated January 24, 2003). A detailed narrative description of Part 4 of the TTB regulations (27 CFR the proposed AVA boundary based on DEPARTMENT OF THE TREASURY part 4) authorizes TTB to establish USGS map markings. definitive viticultural areas and regulate Virginia Peninsula AVA Petition Alcohol and Tobacco Tax and Trade the use of their names as appellations of Bureau origin on wine labels and in wine TTB received a petition from the advertisements. Part 9 of the TTB Williamsburg Winery proposing the 27 CFR Part 9 regulations (27 CFR part 9) sets forth establishment of the ‘‘Virginia standards for the preparation and Peninsula’’ AVA in southeastern [Docket No. TTB–2020–0010; T.D. TTB–173; Virginia. The proposed AVA covers Ref: Notice No. 195] submission to TTB of petitions for the establishment or modification of 673,059 acres and includes the counties RIN 1513–AC71 American viticultural areas (AVAs) and of James City, York, New Kent, and lists the approved AVAs. Charles City, as well as the independent Establishment of the Virginia cities of Poquoson, Hampton, Newport Peninsula Viticultural Area Definition News, and Williamsburg. The proposed AGENCY: Alcohol and Tobacco Tax and Section 4.25(e)(1)(i) of the TTB Virginia Peninsula is not located within Trade Bureau, Treasury. regulations (27 CFR 4.25(e)(1)(i)) defines any other AVA. At the time the petition was submitted, the proposed AVA ACTION: Final rule; Treasury decision. a viticultural area for American wine as a delimited grape-growing region having contained five commercial vineyards SUMMARY: The Alcohol and Tobacco Tax distinguishing features as described in covering a total of approximately 112 and Trade Bureau (TTB) establishes the part 9 of the regulations and, once acres. The petition states that vineyard 673,059-acre ‘‘Virginia Peninsula’’ approved, a name and a delineated owners plan to plant an additional 61 viticultural area (AVA) in southeastern boundary codified in part 9 of the acres of vineyards in the next few years. Virginia. The Virginia Peninsula regulations. These designations allow There are also five wineries within the viticultural area is not located within, vintners and consumers to attribute a proposed AVA. The petition identifies nor does it contain, any other given quality, reputation, or other the distinguishing features of the established viticultural area. TTB characteristic of a wine made from proposed Virginia Peninsula AVA as its designates viticultural areas to allow grapes grown in an area to the wine’s geology and climate. vintners to better describe the origin of geographic origin. The establishment of The proposed Virginia Peninsula their wines and to allow consumers to AVAs allows vintners to describe more AVA, along with the regions to the better identify wines they may accurately the origin of their wines to north and south, is located on the purchase. consumers and helps consumers to Atlantic Coastal Plain, a region of low topographic relief with elevations DATES: This final rule is effective identify wines they may purchase. ranging from sea level to approximately September 24, 2021. Establishment of an AVA is neither an 250 feet. The York River, along with the FOR FURTHER INFORMATION CONTACT: approval nor an endorsement by TTB of the wine produced in that area. Pamunkey River that feeds it, forms the Karen A. Thornton, Regulations and northern boundary of the proposed Rulings Division, Alcohol and Tobacco Requirements AVA, and the James River forms the Tax and Trade Bureau, 1310 G Street Section 4.25(e)(2) of the TTB southern boundary. The Atlantic Coastal NW, Box 12, Washington, DC 20005; regulations (27 CFR 4.25(e)(2)) outlines Plain is underlain by Cenozoic-era sand, phone 202–453–1039, ext. 175. the procedure for proposing an AVA mud, and gravel that were deposited SUPPLEMENTARY INFORMATION: and allows any interested party to during periods of higher sea levels. Background on Viticultural Areas petition TTB to establish a grape- According to the petition, the geological growing region as an AVA. Section 9.12 formations of the proposed AVA are TTB Authority of the TTB regulations (27 CFR 9.12) ideal for viticulture, as the bedrock Section 105(e) of the Federal Alcohol prescribes standards for petitions to tends to be fractured, allowing for Administration Act (FAA Act), 27 establish or modify AVAs. Petitions to greater root depth and greater rainfall

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