Federal Register / Vol. 65, No. 187 / Tuesday, September 26, 2000 / Proposed Rules 57763 notice of transferee liability to U at any time corporation for a separate return year ACTION: Notice of proposed rulemaking. on or before May 30 of Year 8 and assess the pursuant to § 1.1502–21(b), 1.1502– unpaid liability against U at any time on or 22(b), or 1.1502–79(c). In the case of the SUMMARY: The Bureau of Alcohol, before October 27 of Year 8. The result would portion of a consolidated net operating Tobacco and Firearms (ATF) has be the same even if S–1 ceased to exist before loss or consolidated net capital loss or received a petition proposing the March 1 of Year 5, the date P executed the establishment of a viticultural area waiver. consolidated unused business credit to which the preceding sentence does not located along the coast of California. (g) Cross-reference. For further rules apply and which is to be carried back The proposed California Coast applicable to groups that include to a corporation that was not a member viticultural area would consist of 22,000 insolvent financial institutions, see of a consolidated group in the carryback square miles, or 14 million acres of that § 301.6402–7 of this chapter. year, the corporation to which such loss land which the petitioner states is (h) Effective date—(1) Application. or credit is attributable shall make any subject to maritime influences and This section applies with respect to application under section 6411. In the which is warm enough for commercial taxable years beginning on or after the case of a net capital loss or net operating premium winegrape growth. date final regulations are published in loss or unused business credit arising in DATES: Written comments must be the Federal Register. a separate return year which may be received by December 26, 2000. (2) Prior law. For taxable years carried back to a consolidated return ADDRESSES: Send written comments to: beginning before the date final year, after taking into account the Chief, Regulations Division, Bureau of regulations are published in the Federal application of § 1.1502–21(b)(3)(ii)(B) Alcohol, Tobacco and Firearms, P.O. Register, see § 1.1502–77A. with respect to any net operating loss Box 50221, Washington, DC 20091–0221 Par. 6. Section 1.1502–77T(a) is arising in another consolidated group, (Attn: Notice No. 903). Copies of the redesignated as § 1.1502–77A(e) and the common parent for the carryback petition, the proposed regulations, the § 1.1502–77T is removed. year (or agent designated under appropriate maps, and any written Par. 7. The amendments to § 1.1502– § 1.1502–77(d) for the carryback year) comments received will be available for 78(a), as contained in the notice of shall make any application under public inspection during normal proposed rulemaking (LR–97–79) section 6411. business hours at ATF Reading Room, published in the Federal Register on * * * * * Office of Public Affairs and Disclosure, July 31, 1984 (49 FR 30528), are (e) Cross-reference. For further rules Room 6480, 650 Massachusetts Avenue, withdrawn. applicable to groups that include NW, Washington, DC 20226 Par. 8. Section 1.1502–78 is amended insolvent financial institutions, see FOR FURTHER INFORMATION CONTACT: Tom as follows: § 301.6402–7 of this chapter. Busey, Regulations Division, Bureau of 1. Paragraph (a) is revised. (f) Effective date—(1) In general. This Alcohol, Tobacco and Firearms, 650 2. Paragraph (b)(1) is amended by section applies to taxable years to which Massachusetts Avenue, NW, adding the language ‘‘for the carryback a loss or credit may be carried back and Washington, DC 20226 (202) 927–8095. year (or agent designated under for which the due date (without SUPPLEMENTARY INFORMATION: § 1.1502–77(d) for the carryback year)’’ extensions) of the original return is after Background at the end of the first sentence. the date final regulations are published 3. In paragraph (c), the last sentence in the Federal Register. On August 23, 1978, ATF published of Example (1) is amended by adding (2) Prior law. For taxable years to Treasury Decision ATF–53 (43 FR the language ‘‘for the carryback year’’ which a loss or credit may be carried 37672, 54624) revising regulations in 27 after ‘‘parent.’’ back and for which the due date CFR part 4. These regulations allow the 4. In paragraph (c), the last sentence (without extensions) is on or before the establishment of definitive viticultural of Example (2) is amended by removing date final regulations are published in areas. The regulations allow the name of the language ‘‘S–1’’ and adding ‘‘P’’ in the Federal Register, see § 1.1502–78 in an approved viticultural area to be used its place. effect prior to the date final regulations as an appellation of origin on wine 5. In paragraph (c), Example (3), the are published in the Federal Register, as labels and in wine advertisements. On seventh sentence is amended by contained in 26 CFR part 1 revised as of October 2, 1979, ATF published removing ‘‘Z must’’ and adding ‘‘X April 1, 2000. Treasury Decision ATF–60 (44 FR must’’ in its place. 56692) which added a new part 9 to 6. Paragraphs (e) and (f) are added. Robert E. Wenzel, Title 27, CFR, for the listing of approved The revision and additions read as Deputy Commissioner of Internal Revenue. American viticultural areas, the names follows: [FR Doc. 00–24039 Filed 9–25–00; 8:45 am] of which may be used as appellations of BILLING CODE 4830±01±P origin. § 1.1502±78 Tentative carryback Section 4.25a(e)(1), title 27, CFR, adjustments. defines an American viticultural area as (a) General rule. If a group has a DEPARTMENT OF THE TREASURY a delimited grape-growing region consolidated net operating loss, a distinguishable by geographic features, consolidated net capital loss, or a Bureau of Alcohol, Tobacco and the boundaries of which have been consolidated unused business credit for Firearms delineated in subpart C of part 9. any taxable year, then any application Section 4.25a(e)(2) outlines the under section 6411 for a tentative 27 CFR Part 9 procedure for proposing an American carryback adjustment of the taxes for a [Notice No. 903] viticultural area. Any interested person consolidated return year or years may petition ATF to establish a grape- preceding such year shall be made by RIN 1512±AA07 growing region as a viticultural area. the common parent corporation for the California Coast Viticultural Area The petition should include: carryback year (or agent designated (2000R±166P) (a) Evidence that the name of the under § 1.1502–77(d) for the carryback proposed viticultural area is locally year) to the extent such loss or unused AGENCY: Bureau of Alcohol, Tobacco and/or nationally known as referring to business credit is not apportioned to a and Firearms (ATF), Treasury. the area specified in the petition;

VerDate 112000 17:43 Sep 25, 2000 Jkt 190000 PO 00000 Frm 00016 Fmt 4702 Sfmt 4702 E:\FR\FM\26SEP1.SGM pfrm03 PsN: 26SEP1 57764 Federal Register / Vol. 65, No. 187 / Tuesday, September 26, 2000 / Proposed Rules

(b) Historical or current evidence that the consumer. ATF is looking for early production of wines in these the boundaries of the viticultural area specific comments on this situation and missions which extended along the are as specified in the petition; how the approval of this viticultural California Coast and fall within the (c) Evidence relating to the area should effect the future use of the boundaries of this AVA (see historical geographical characteristics (climate, term ‘‘Coastal.’’ discussions by wine experts in The soil, elevation, physical features, etc.) Wine Regions of America, by John J. which distinguish the viticultural Evidence That the Name of the Area Is Locally or Nationally Known Baxevanis (Vinifera Wine Journal 1992) features of the proposed area from at 257–8; Winemaking in California, by surrounding areas; According to the petitioners, the Teiser and Harroun (McGraw-Hill 1983) (d) A description of the specific name, ‘‘California Coast’’ is universally at 1–3; General Viticulture, by A.J. boundaries of the viticultural area, recognized. The petitioners point out Winkler at 2–4; The World Atlas of based on features which can be found that on a map of California, the state Wine, by Hugh Johnson at 226; and on United States Geological Survey has, on the western edge, one long Wine, by Amerine and Singleton (U.C. (U.S.G.S.) maps of the largest applicable rugged coastline next to a relatively Press 1977) at 281–3.) In addition, the scale; and narrow area of flatter land, which is petitioners seek to coordinate the (e) A copy (or copies) of the itself bordered, on the east, by a long, proposed ‘‘California Coast’’ viticultural appropriate U.S.G.S. map(s) with the nearly continuous string of mountains area with the existing boundaries of the boundaries prominently marked. known as the Coast Ranges. The other current North, Central, South, and side of the Coast Ranges is accompanied Petition Sonoma Coast viticultural areas in by a long, north-south, interior strip of The Bureau of Alcohol, Tobacco and California along with the previously continental mass distinguished by the unconnected coastal areas which link Firearms (ATF) has received a petition hot Central Valley and, east of that from the ‘‘California Coast Alliance’’ the existing ‘‘Coast’’ viticultural areas. basin, the high peaks of the Sierra According to the petitioners, the proposing the establishment of a Nevada Range. The petitioners cite viticultural area located along the coast northern, southern, and eastern numerous books referring to ‘‘the boundaries set by these ‘‘Coast’’ of California. It would include and join California Coast’’ and the ‘‘California together currently established ‘‘coast’’ viticultural areas correspond with the Coastal’’ region. unique Mediterranean coastal climate viticultural areas but would not cover The petitioners claim that substantial which permits the commercial growth the entire California Pacific coast. The evidence supports the common, of premium winegrapes in the coastal proposed California Coast viticultural widespread, and historical usage of the area of California. Moreover, according area would consist of 22,000 square ‘‘California Coast’’ name and to the petitioners, above the North Coast miles, or 14 million acres of that land demonstrates that the term ‘‘California which the petitioner states is subject to Coast’’ is sometimes used to cover the viticultural area northern boundary, the maritime influences and which is warm entire California coastal area from area becomes subject, to a higher degree, enough for commercial premium Mexico up to Oregon, and is sometimes to the Arctic storm pattern and can no winegrape growth. This proposed used to cover much smaller portions of longer be characterized as viticultural area would be consistent in the coastal area of the state, depending ‘‘Mediterranean.’’ The petitioner states size with other large areas (i.e. the Ohio on the subject matter at hand. Finally, that this marine-influenced climate River Valley, containing approximately the petitioners point out that of all the extends west to east from the shoreline 30,000 square miles, the Texas Hill documentation reviewed for this to the first large barrier to marine Country, consisting of 15,000 square petition, none of it includes in the influence, or the California Coast miles, and the Texas High Plains description of ‘‘Coast’’ areas, any Ranges. The petitioners note that containing approximately 12,000 square portion of California which is east of the evidence must be provided to establish miles). California Coast, Transverse, and that ‘‘the name is locally and/or Peninsular Ranges. nationally known as referring to the area Label Issue specified in the appellation,’’ not that a Presently there are a number of Proposed Limitations on the Proposed name for a viticultural area be locally or wineries that use the term ‘‘Coastal’’ as Viticultural Area nationally known within the wine additional information on their wine The petitioners cite several references industry. The petitioners state that the labels. ATF has no formal definition or that support the early production of name ‘‘California Coast’’ not only refers criteria for the use of this term. These wines in missions which extended to the dominant physical characteristic wine labels may also bear a recognized along the California Coast and fall of the petitioned area and to the name appellation such as ‘‘California.’’ The within the boundaries of this proposed for which the area is best known, but question that now arises is, if this AVA. The historical evidence indicates corresponds directly to California wine viticultural area is approved, would the establishment of a chain of missions history, climate data, and relevant ATF consider a label bearing the by the Spanish Franciscan monks information from wine experts. designation ‘‘California Coast’’ (as a extending from San Diego to their According to the petitioner, because viticultural area designation) and northernmost mission in Sonoma of the climate data and the historical another label stating ‘‘California’’ as the County but not all the way up the distinctions of the proposed area, it is appellation in direct conjunction with northern part of the coast of California. logical to end the ‘‘California Coast’’ the term ‘‘Coastal’’ to be confusing. The petitioners have presented viticultural area at the same point as the Would the establishment of this considerable evidence tracing the roots North Coast viticultural area. The viticultural area foreclose the use of the of this grape growing and wine petitioners do not feel that the name is term ‘‘Coastal’’ on labels not eligible for production from the early settling of misleading for not covering the area this viticultural area designation? The these missions along the California coast north of Mendocino County, since this petitioners themselves have suggested (A History of Wine in America by term has been used by many others to that the unregulated use of the term Thomas Pinney). There are many cover several different portions of the ‘‘Coastal’’ on a label bearing the references in historical books written by California coast, as well as the entire appellation California is misleading to noted wine experts that support the coastline. The petitioners believe that if

VerDate 112000 17:43 Sep 25, 2000 Jkt 190000 PO 00000 Frm 00017 Fmt 4702 Sfmt 4702 E:\FR\FM\26SEP1.SGM pfrm03 PsN: 26SEP1 Federal Register / Vol. 65, No. 187 / Tuesday, September 26, 2000 / Proposed Rules 57765 this could be considered misleading, reach the barrier presented by the ‘‘California Coast’’ viticultural area then the North Coast viticultural area California Coast Ranges. The petitioners since it has historical and present-day must also be renamed, because it stops state that these same general climatic wine industry presence and virtually at the identical location in Mendocino patterns prevail to support the growth of identical climate. County and does not cover the entire the many varietal grapes which are used The proposed eastern boundary line, area of the northern coast of California. to produce premium dry wines. between the North Coast viticultural The petitioners apply the same logic area and the San Francisco Bay to the consideration of the appropriate Existing Coast Boundaries viticultural area, would connect the eastern boundary of the proposed The petitioners are proposing to retain towns Fairfield and Martinez by ‘‘California Coast’’ viticultural area. The the same eastern boundaries for the recognizable boundary markers. The rest petitioners seek to establish the proposed ‘‘California Coast’’ viticultural of the boundary gap would follow the proposed area at exactly the same area as the current three ‘‘Coast’’ alignment of the Central Coast AVA and eastern boundaries as the North Coast, viticultural area boundaries and to unify the same line as the San Francisco Bay Central Coast, and the South Coast (with these boundaries by filling in the areas viticultural area. areas of joinder in between). between the North and Central Coasts, Between the Central and South Coast and between the Central Coast and the viticultural areas, the western boundary Historical or Current Evidence That the South Coast viticultural areas. would follow the coastline between the Boundaries of the Viticultural Area Are In order to complete the closure of the two existing viticultural areas. The as Specified in the Petition area between the North and the Central eastern boundary would take in the According to the petitioners, there is Coasts, the petitioners propose Oxnard/Malibu/Los Angeles/San a definite and clear historical basis for including those counties that are Gabriel/Pasadena/Anaheim area. In establishing the proposed ‘‘California included in the San Francisco Bay addition, the petitioners feel that it is Coast’’ viticultural area. The petitioners viticultural area and the recently important to include the Los Angeles claim that not only are there clear and expanded Central Coast viticultural area in the proposed ‘‘California Coast’’ important historical events which tie area. See, 27 CFR 9.75 and 9.157. This AVA because of this region’s this area together, but these events are includes all of San Francisco, San preeminence as the birthplace of the directly linked to the development of Mateo, Santa Clara, Alameda, and California wine industry, and because of grape cultivation and to the beginning of Contra Costa counties. The petitioners its strong performance into this century the wine industry in the coastal regions are incorporating into the ‘‘California as a producer of wines. of California, and directly correspond to Coast’’ petition the reasoning of the San the proposed area. According to the Francisco Bay and the amended Central Evidence Relating to the Geographical petitioner, the geographical area of Coast petition in seeking to include the Features (Climate, Soil, Elevation, ‘‘missionized’’ California very nearly same geographical area in the proposed Physical Features, Etc.) Which matches the petitioned area. The ‘‘California Coast’’ viticultural area. See, Distinguish Viticultural Features of the petitioner claims that the mission chain 64 FR 3015 (Jan. 20, 1999). In addition, Proposed Area From Surrounding formed the backbone for California’s the petitioners are proposing to include Areas historical heritage, and is well known the entire Marin County since it has the According to the petitioner, the land even today. The petitioners provided same general geography and coastal within the proposed ‘‘California Coast’’ references relating to historical climate as the counties in the rest of the viticultural area possesses a similar discussions by wine experts. ‘‘Coast’’ viticultural areas. According to climate and geography along its length, According to the petitioner, the the petitioners, Marin County is affected in that this area is strongly affected by history of California, and of its by the ocean both by its long coastline, its proximity to coastal climate patterns, winemaking industry, have been deeply and also by its border on the San and shares the Mediterranean pattern of affected by its long Pacific coastline and Francisco Bay. In support of this wet winters, dry summers, and cool its mild coastal weather. According to proposal, the petitioners cite The Wine marine influence. Climate and the petitioner, the area along the coast Spectator’s Wine Country Guide to geography are deeply interconnected subject to ‘‘complete missionization’’ California. This guide includes Marin along the California coast. The was the only area in which grapes were County in its wine map of the San petitioners stated that there is a great grown for the production of wine, and Francisco Bay area. Finally, the difference between the geography and was the only area where California petitioners claim that the information climate of the coast area and the inland wines were available for 65 years. found in the San Francisco Bay petition parts of California. Because of the Today, according to the petitioners, and supporting documents provides geological barriers presented by the the area included within the proposed justification for placing Marin County topography of California, the climate ‘‘California Coast’’ boundaries contains fully into the proposed ‘‘California patterns tend to run west to east, more than 468 wineries and well over Coast’’ viticultural area. In the San depending upon their proximity to the 145,000 acres of vineyards. The Francisco Bay and Central Coast ocean, and are not so much a function petitioners state that wineries and proposals, the Central Coast AVA is of north-south latitude as is true in most winegrape vineyards abound up and extended north to the Golden Gate of the rest of the country. down the ‘‘California Coast’’ area in Bridge, the northern edge of San The petitioners state that the varying densities, hampered only by a Francisco County. According to the California coast was created through few localized and inhospitable extreme petitioners, Marin County, which has several different processes: geologic marine microclimates, some very steep traditionally been considered part of the upheaval, the draining of a large inland elevations in the coastal hills, and by north coast area, is partially excluded sea, and marine terracing. As a result, the state’s population centers. from the North Coast viticultural area there is a great variety of different types According to the petitioners, these and completely excluded from the San of rocks and soils along the entire areas, known as coastal regions, all have Francisco Bay viticultural area. The coastline. Variations are great even in very similar weather patterns, typified petitioners feel that there are no very short distances along in the coast by cooling ocean breezes and fogs practical or logical reasons to exclude area, and within each of the existing moving inland from the west, until they Marin County from the proposed ‘‘Coast’’ viticultural areas. The

VerDate 112000 17:43 Sep 25, 2000 Jkt 190000 PO 00000 Frm 00018 Fmt 4702 Sfmt 4702 E:\FR\FM\26SEP1.SGM pfrm03 PsN: 26SEP1 57766 Federal Register / Vol. 65, No. 187 / Tuesday, September 26, 2000 / Proposed Rules petitioners cite various references States that has this climate. The main opposed to the latitudinal location of a including Professor A. J. Winkler reasons for this are the effects of the portion of the coast. In other words, San indicating that a number of grape ocean itself, the existence of the ‘‘Pacific Diego is closer to San Jose in climate varieties of the highest quality produce High’’ off the California coast, and the than it is to the hot Central Valley, excellent wines when grown on a inland barrier presented by the coastal because of its location on the coast. number of quite different soil types with mountain chains. According to Weather According to the petitioners, the climate being the largest determinant of Southern California by Harry P. distinction between the land from variable. Bailey, ‘‘It is highly significant that all Mendocino County south, and the far As an example, the petitioners cite areas of Mediterranean climate are northern coast above that spot, results Napa Valley as geographically located between the 30th and 45th from the strong polar air mass which containing an incredible mix of soil parallels of latitude, and are on the moves down from Alaska through series varying dramatically between its western borders of the land masses of Washington, Oregon, and into the top southern and northern boundaries. The which they are a part.’’ The proposed portion of Northern California. Because petitioners state that Napa Valley viticultural area would lie between the of the presence of the much colder polar contains 36 soil series within its 32nd and 39th parallels of latitude. air in the northernmost part of boundaries. The petitioners also cite the According to the petitioners, the California, the northern line of the Alexander Valley viticultural area, Pacific Ocean water cools and heats existing North Coast viticultural area containing 30 soil series. more slowly than land. It raises air generally is the upper limit to the As additional support, the petitioners temperatures in the winter and lowers Mediterranean climate. The wetter note the strongly distinguished soils of them in the summer. Thus, the coast climate similar to western Washington the Central Valley, on the eastern side never becomes as hot or cold as regions extends down along the Coast Ranges of the California Coast Ranges. This several miles to the east. According to well into California, with rainfall former inland sea, possesses highly the petitioners, summer weather results decreasing in a southerly direction. The fertile land. The soil is now rich river in an often foggy coast, while it is hot petitioners cite The Wine Regions of deposit, fertile and flat. According to the in the Central Valley. Places near the California, indicating that the climatic petitioners, these conditions are totally coast experience remarkably uniform ‘‘line’’ is drawn at the top of Mendocino different in the Central Valley from temperatures while the inland areas County, since the two dominating those among the coastal hills. The (such as San Joaquin Valley) are out of agricultural climates (Mediterranean Central Valley soils, combined with the the fogs, and temperature ranges and desert) are distinguished from the very hot summers in the Valley, cause broaden considerably. humid upland climate (north of the grape vines to ‘‘go into overdrive The petitioners state that the Mendocino County). In addition, The producing excessive foliage and bland California coast is not cooled by sea air Wine Atlas of California notes that Lake grapes.’’ alone. The California Current, which and Mendocino Valleys sit at the edge According to the petitioners, the soils runs southward along the coastline, of the Aleutian winter storm track. For information provides certain brings cold waters from the north. this same reason, the petitioners consolidating evidence as to the acidic Beginning in about March, the propose limiting the California Coast soils of the coast and their distinction California current is driven offshore AVA to the same northern line as the from the kinds of soils found in the resulting in the dense morning fogs existing North Coast viticultural area. Central Valley, while the geological data pulled inland by the rising heat of the According to the petitioners, late in very strongly establishes the existence Central Valley. This same effect occurs the Spring, masses of air are pushed of a distinct coast of California, with a up and down the coast, although from behind by the Pacific High, and unique history, and entirely Southern California is tempered by pulled up from the land by the heating distinguishable land formations. warmer air from the south. of the Central Valley and other warm According to the petitioners, late in inland areas. This air mass begins to Climate of the California Coast the Fall, the ocean reaches its peak move toward the land with increasing According to the petitioners, the coast temperatures, and the Pacific High speed. Because of the Coriolis effect, the of California has a unique climate in the begins to weaken and to move south air turns, and when it hits the western United States and in most of the world, with the seasonal path of the sun, edge of the land, the air moves from a and despite its size, can specifically be ceasing its cooling effect on the north-westerly direction, often parallel distinguished from the surrounding California coast area. The extreme to the slant of the coastline. This air is areas. Further, the petitioners state that Central Valley temperature drop, and prevented from moving inland by the it is directly a result of the climate that the cessation of cold bottom water wall of the Coast Range, and moves the California coast has been demarked upwelling along the coast, contributes to south down the coast and into any by enologists, vintners, and wine writers the coastal fog bank no longer occurring. openings or valleys along the coast. as a source of most of the premium The cool coastal summer weather According to the petitioners, the air is varietal grapes in the United States, in pattern breaks, and the grape harvest cooled off after it hits the upwelling contrast with the Central Valley, which takes place during the sunny September cold ocean water, and so cools the lies on the far side of the Coast Ranges. and October months. California coast as well with the fog According to the petitioners, most According to the petitioners, the drying out as it moves inland and as the American enologists agree that climate whole proposed ‘‘California Coast’’ area air warms. has the greatest influence on the quality has a very similar air-conditioned According to the petitioners, the Coast of wines produced in a particular area. climate. Further, temperatures over the Ranges generally contain the cool The California coast climate is ocean vary less than over the land, and oceanic breezes and the moist fog along generally classified as Mediterranean. the prevailing westerly winds give the the coastline to the west of the According to the petitioners, only one California coast relatively moderate mountains. The petitioners state that the percent of the world has this climate, temperatures year round. The influence of the California coast and the area consisting of approximately petitioners state that it is the location of diminishes rapidly as the marine air the lower two thirds of the California the land near the coast that reaches the physical barrier of the Coast coast is the only part of the United distinguishes the temperate climate, as Ranges in the north, and the Transverse

VerDate 112000 17:43 Sep 25, 2000 Jkt 190000 PO 00000 Frm 00019 Fmt 4702 Sfmt 4702 E:\FR\FM\26SEP1.SGM pfrm03 PsN: 26SEP1 Federal Register / Vol. 65, No. 187 / Tuesday, September 26, 2000 / Proposed Rules 57767 and Peninsular Ranges in the south. The climate and more of a dry, continental Some of the most complete petitioners cited, The Weather of climate. temperature data is collected and stored Southern California, which graphically The petitioners state that this weather at the Western Regional Climate Center demonstrates that the coastal sector, or pattern is quite special, for the world (WRCC). This Federal government entity the western side of the mountains, is distribution of the Mediterranean is the repository for weather data substantially wetter, cooler, and climate is sparse. collected by the National Weather cloudier than the interior. The According to the petitioners, the Coast Service (NWS), an agency within the petitioners state that these mountains Range mountains catch the coastal National Oceanic and Atmospheric also greatly reduce the amount of moisture, permitting the Pacific Ocean Administration (NOAA). Since the time precipitation east of their crests, and to dominate the climate on the western that this cooperative observer network tend to cause the rain to fall on the side of the Coast Ranges. The moist air has collected data, there have been over westerly slopes. crosses the coastal strip and pushes up 3,000 stations that have contributed According to the petitioners, regions the mountain slopes, and its moisture is data. Some of the data available from of the coast have climates markedly squeezed out as rain (occasionally snow the WRCC reports degree days using different than interior climates found at at the highest elevations). Once over the various base temperatures ranging from the same latitude. As the exhibits top, the air is dry and warms rapidly as 50 °F to 65 °F. The petitioners used a displaying the cutaway views of the it drops down into the Central Valley. base temperature of 50 °F, as Professor coast of California demonstrate, the According to the petitioners, during the Winkler did for his computations, to marine air crosses the flatter strip of Summer, the dry heat of the Central closely approximate cumulative results land next to the ocean, and generally is Valley acts as a vacuum, sucking the for grapes. They totaled the data stopped by the first significant barrier cool marine air through the San extracted from the WRCC database that it reaches. In the case of the coast Francisco Bay and other smaller gaps in adjusted for the time period of April 1st of California, the first significant barrier the coastal mountain ranges. The through November 1st for stations both that is reached along the coast is the petitioners state that this is one of the inside and outside the proposed AVA. upper elevations of the Coast Ranges. As reasons that the cool westerly winds They then applied this data to each the above discussion of the Pacific High keep the California coast air- station, after plotting these stations displays, the cool air moves south along conditioned. using their latitude and longitude According to the petitioners, the same the Coast Ranges, and into the valleys coordinates, and then overlaid the general pattern is followed in southern and gaps along the coast. information on a map of California California. The petitioners state that as The petitioners state that, by contrast, which is part of this petition. This map with the northern California coast the Central Valley lies away from the illustrates that the California Coast area climate, ‘‘the climate becomes warmer, climate influences of the coast. The is cooler than the inland areas when influence of the coast diminishes drier, and more sunny as distance from using the five degree day ranges. rapidly as the marine air reaches the the coast increases. These tendencies, physical barrier of the Coast Range. As though, are true only for lowlands. If the Public Participation—Written the marine air crosses the flatter strip of sea-to-interior movement involves Comments land next to the ocean, it is generally crossing mountains, as it must with only stopped by the first significant barrier a few exceptions, then the effects of In accordance with ATF regulations at that it reaches, which is the upper altitude are also encountered.’’ And, as 27 CFR 9.3, ATF requests comments elevations of the coastal mountain with the northern California coast, the from all interested persons, as to ranges. This explains why the coast southern California coast is known for whether it should establish the sector, or the western side of the its Mediterranean climate. ‘‘It is a California Coast viticultural area in mountains, is substantially wetter, common misconception that north accordance with the above described cooler, and cloudier than the interior. means cool and south means hot. petition submitted by the ‘‘California Coastal regions have climates markedly California’s temperatures do not depend Coast Alliance.’’ Because geographic different than interior climates found at on latitude but on an area’s proximity to features, including climate, which the same latitude. the coast. There are parts of southern distinguish the viticultural features of In comparison, the Central Valley lies California, around San Diego, that are the proposed area from the surrounding on the far side of the Coast Ranges. Far cooler than the Sacramento Valley in areas is an important consideration in inland from marine influence, the northern California.’’ The petitioners establishing a viticultural area, ATF is Central Valley is warmer than the coast cite Grossman’s Guide to Beer, Wine, especially interested in comments on in summer and colder in winter. Thus, and Spirits, for this statement. Thus, this topic, particularly on whether the the petitioners state that the climatic according to the petitioners, although climate within the proposed viticultural contrast between the coast and interior Southern California is generally warmer area is distinctive. Comments received is marked in California. than Northern California, the coast of on or before the closing date will be According to the petitioners, the the state which possess the carefully considered. Comments proposed California Coast viticultural Mediterranean climate possess received after that date will be given the area has ‘‘coastal Mediterranean’’ substantially common characteristics same consideration if it is practical to climatic characteristics: the cool which are not shared by the rest of the do so. However, assurance of summer weather reaches maximum state, and which are extremely consideration can only be given to warmth in September; the winters are significant for winegrape growing comments received on or before the wet, mild, and relatively frost-free; and purposes. closing date. the temperature fluctuations are The petitioners claim that the cooling ATF will not recognize any submitted minimal. The summers are generally wind flow pattern is also reflected by material as confidential and comments dry, with a high percentage of sunny precipitation and temperature. may be disclosed to the public. Any days. According to the petitioners, the According to the petitioners, Coastline material that the commenter considers coast has higher humidity year-round, valleys are characterized by a gradual to be confidential or inappropriate for while places farther from the ocean will decrease in humidity as the marine air disclosure to the public should not be tend to have less of a damp, marine travels away from the coast. included in the comments. The name of

VerDate 112000 17:43 Sep 25, 2000 Jkt 190000 PO 00000 Frm 00020 Fmt 4702 Sfmt 4702 E:\FR\FM\26SEP1.SGM pfrm03 PsN: 26SEP1 57768 Federal Register / Vol. 65, No. 187 / Tuesday, September 26, 2000 / Proposed Rules the person submitting a comment is not Authority and Issuance (25) Duncans Mills, dated 1979. exempt from disclosure. Title 27, Code of Federal Regulations, (26) Elk Mountain, dated 1967, Comments may be submitted by Part 9, American Viticultural Areas, is (Revised 1973). facsimile transmission to (202) 927– proposed to be amended as follows: (27) Fairfield North, dated 1951, 8602, provided the comments: (1) Are (Revised 1980). legible; (2) are 81⁄2″ × 11″ in size, (3) PART 9ÐAMERICAN VITICULTURAL (28) Fairfield South, dated 1949, contain a written signature, and (4) are AREAS (Revised 1980). three pages or less in length. This (29) Fort Bragg, dated 1960, (Revised limitation is necessary to assure Paragraph 1. The authority citation 1978). reasonable access to the equipment. for part 9 continues to read as follows: (30) Fort Ross, dated 1978. Comments sent by FAX in excess of Authority: 27 U.S.C. 205. (31) Gilroy, dated 1955, (Revised three pages will not be accepted. 1993). Receipt of FAX transmittals will not be Subpart CÐApproved American (32) Gilroy Hot Springs, dated 1955, acknowledged. Facsimile transmitted Viticultural Areas (Revised 1971). comments will be treated as originals. (33) Gualala, dated 1960, (Revised Par. 2. Subpart C is amended by 1977). Any person who desires an adding § 9.171 to read as follows: opportunity to comment orally at a (34) Honker Bay, dated 1953, (Revised * * * * * public hearing on the proposed 1980). (35) Jericho Valley, dated 1958, regulation should submit his or her § 9.171 California Coast. request, in writing, to the Director (Revised 1993). (a) Name. The name of the viticultural (36) La Costa Valley, dated 1996. within the 60-day comment period. The area described in this section is (37) Lake Berryessa, dated 1959, Director, however, reserves the right to ‘‘California Coast.’’ (Revised 1993). determine, in light of all circumstances, (b) Approved maps. The appropriate (38) Lick Observatory, dated 1955, whether a public hearing will be held. maps for determining the boundary of (Revised 1968). Paperwork Reduction Act the California Coast viticultural area are (39) Lower Lake, dated 1993. the following sixty-two U.S.G.S. (40) Mallo Pass Creek, dated 1960, The provisions of the Paperwork Topographic maps. They are titled: (Revised 1977). Reduction Act of 1995 (44 U.S.C. 3507 (1) Santa Rosa, dated 1958, (Revised (41) Mendenhall Springs, dated 1996. (j)) and its implementing regulations, 5 1970). (42) Mendocino, dated 1960, (Revised CFR part 1320, do not apply to this (2) San Francisco, dated 1956, 1978). notice because there are no new or (Revised 1980). (43) Monticello Dam, dated 1959, revised recordkeeping or reporting (3) Santa Ana, dated 1959, (Revised (Revised 1993). requirements being proposed. No new 1979). (44) Morgan Hill, dated 1955, requirement to collect information is (4) San Luis Obispo, dated 1956, (Revised 1980). proposed. (Revised 1969). (45) Mt. Sizer, dated 1955, (Revised Regulatory Flexibility Act (5) Monterey, dated 1974. 1971). (6) San Diego, dated 1958, (Revised (46) Mt. Vaca, dated 1951, (Revised It is hereby certified that this 1978). 1968). proposed regulation will not have a (7) San Bernardino, dated 1958, (47) Northspur, dated 1991. significant economic impact on a (Revised 1969). (48) Plantation, dated 1977. substantial number of small entities. (8) Los Angeles, dated 1975. (49) Point Arena, dated 1960, (Revised Any benefit derived from the use of a (9) Santa Maria, dated 1989. 1978). viticultural area name is the result of the (10) Long Beach, dated 1957, (Revised (50) Potter Valley, dated 1960. proprietor’s own efforts and consumer 1978). (51) Sanhedrin Mtn., dated 1966, acceptance of wines from a particular (11) Aetna Springs, dated 1958, (Revised 1994). area. No new requirements are (Revised 1992). (52) San Jose East, dated 1961, proposed. Accordingly, a regulatory (12) Albion, dated 1960. (Revised 1980). flexibility analysis is not required. (13) Altamont, dated 1953, (Revised (53) Saunders Reef, dated 1960, Executive Order 12866 1981). (Revised 1977). (14) Arched Rock, dated 1977. (54) Stewarts Point, dated 1978. It has been determined that this (15) Bartlett Mtn., dated 1958, (55) Tassajara, dated 1991. proposed regulation is not a significant (Revised 1994). (56) Three Sisters, dated 1954, regulatory action as defined in (16) Bodega Head, dated 1972. (Revised 1971). Executive Order 12866. Accordingly, (17) Brushy Mtn., dated 1966, (57) Upper Lake, dated 1991. this proposal is not subject to the (Revised 1994). (58) Van Arsdale Reservoir, dated analysis required by this Executive (18) Burbeck, dated 1991. 1991. order. (19) Byron Hot Springs, dated 1953, (59) Vine Hill, dated 1959, (Revised Drafting Information (Revised 1968). 1980). (20) Calaveras Reservoir, dated 1961, (60) Walter Springs, dated 1959, The principal author of this document (Revised 1980). (Revised 1992). is Tom Busey, Regulations Division, (21) Chiles Valley, dated 1966, (61) Wildomar, dated 1953, (Revised Bureau of Alcohol, Tobacco and (Revised 1994). 1988). Firearms. (22) Clayton, dated 1953, (Revised (62) Willis Ridge, dated 1966, 1980). (Revised 1994). List of Subjects in 27 CFR Part 9 (23) Clearlake Oaks, dated 1958, (c) Boundary. The California Coast Administrative practice and (Revised 1994). viticultural area is located along the procedure, Consumer protection, and (24) Diablo, dated 1953, (Revised Pacific Ocean coast of the State of Wine. 1980). California.

VerDate 112000 17:43 Sep 25, 2000 Jkt 190000 PO 00000 Frm 00021 Fmt 4702 Sfmt 4702 E:\FR\FM\26SEP1.SGM pfrm03 PsN: 26SEP1 Federal Register / Vol. 65, No. 187 / Tuesday, September 26, 2000 / Proposed Rules 57769

(1) The beginning point is found on Putah Creek to the west shore of Lake (28) Then proceed south along the the ‘‘Bodega Head’’ Quadrangle at the Berryessa on the Walter Springs western border of Sections 4 and 9 on point where the Sonoma County and Quadrangle; the Altamont Quadrangle; Marin County boundary joins the Pacific (15) Then south and east following (29) Then proceed south along the Ocean; the shore of Lake Berryessa, crossing the western border of Section 16 (2) Then Northwest following the Chiles Valley and Berryessa approximately 4,275 feet to the point Pacific Ocean Shoreline, crossing the Quadrangles to the Monticello Dam at where the 1,100-meter elevation contour Duncans Mills, Arched Rock, Fort Ross, the eastern end of Lake Berryessa on the intersects the western border of Section Plantation, Stewarts Point, Gualala, Monticello Dam Quadrangle; 16 on the Altamont Quadrangle; Sanders Reef, Point Arena, Mallo Pass (16) Then south following the (30) Then proceed in a southeasterly Creek, Albion, Mendocino Quadrangles boundary between Napa and Solano direction along the 1,100-meter to the mouth of the Noyo River on the Counties to the extreme southeastern elevation contour to the intersection of Fort Bragg Quadrangle; corner of Napa County on the Fairfield the southern border of Section 21 with (3) Then east following the Noyo North Quadrangle; the 1,100-meter elevation contour on the River, crossing the Northspur (17) Then south in a straight line Altamont Quadrangle; Quadrangle to the confluence with approximately 5.5 miles to the junction (31) Then proceed west to the Redwood Creek on the Burbeck with the Southern Pacific in Suisun City southwest corner of Section 20 on the Quadrangle; on the Fairfield South Quadrangle; Altamont Quadrangle; (4) Then northeast on a straight line (18) Then south and west crossing the (32) Then proceed south along the for approximately 17.6 miles; crossing Cine Hill Quadrangle, following the western boundaries of Sections 29 and the Willis Ridge Quadrangle, to the peak Southern Pacific Railroad double track 32, Township 3 South, Range 3 East and of Brushy Mountain (elevation 4,864 to its intersection with Suisun Bay on then south along the western boundaries feet) on the Brushy Mountain the Benicia Quadrangle; of Sections 5, 8, 17, 20, Township 4 Quadrangle; (19) Then southeast following South, Range 3 East to the southwest (5) Then southeast in a straight line Highway 21 across the Suisun Bay to its corner of Section 20 on the Mendenhall for approximately 9.4 miles to the peak intersection with the south shore of Springs Quadrangle; of Sanhedrin Mountain (elevation 6,175 Suisun Bay on the Vine Hill (33) The boundary follows the east- feet) on the Sanhedrin Mountain Quadrangle; west section line west along the Quadrangle; (20) Then east along the shoreline to southern boundary of Section 19 in (6) Then southeast in a straight line a point marked BM 15 on the shoreline Township 4 South, Range 3 East, and for approximately 12.1 miles to the peak of Contra Costa County on the Vine Hill west along the southern boundary of of Pine Mountain (elevation 3,746 feet) Quadrangle; Section 24 in Township 4 South, Range on the Van Arsdale Reservoir (21) Then, from this point, the 2 East, to the southwest corner of that Quadrangle; boundary proceeds in a southeasterly Section 24 on the Mendenhall Springs (7) Then southeast in a straight line direction on a straight line across the Quadrangle; for approximately 11.2 miles, crossing Honker Bay map to Mulligan Hill (34) The boundary follows the north- the Potter Valley and Elk Mountain (elevation 1,438 feet) on the Clayton south section line north along the Quadrangles to Youngs Peak (elevation Quadrangle; western boundary of Section 24 in 3,683 feet) on the Upper Lake (22) Then the boundary proceeds in a Township 4 South, Range 2 East, to the Quadrangle; southeasterly direction in a straight line northwest corner of that Section 24 on (8) Then southeast on a straight line to Mt. Diablo (elevation 3,849 feet) on the Mendenhall Springs Quadrangle; for approximately 8.0 miles to Pinnacle the Clayton Quadrangle; (35) The boundary follows the east- Rock Lookout (elevation 4,618 feet) on (23) Then the boundary proceeds in a west section line west along the the Bartlett Mountain Quadrangle; southeasterly direction in a straight line southern boundary of Section 14 in (9) Then southeast in a straight line across Diablo and Tassajara maps to Township 4 South, Range 2 East, to the for approximately 5.0 miles, crossing Brushy Peak (elevation 1,702 feet) on southwest corner of that Section 14 on the Bartlett Springs Quadrangle, to the Byron Hot Springs Quadrangle; the Mendenhall Springs Quadrangle; Evans Peak (elevation 4,005 feet) on the (24) The boundary proceeds due (36) The boundary follows the north- Clearlake Oaks Quadrangle; south, approximately 400 feet, to the south section line north along the (10) Then southeast in a straight line northern boundary of Section 13, western boundary of Section 14 in for approximately 5.5 miles to the peak Township 2 South, Range 2 East on the Township 4 South, Range 2 East, to the of Round Mountain on the Clearlake Byron Hot Springs Quadrangle; Hetch Hetchy Aqueduct on the Oaks Quadrangle; (25) The boundary proceeds due east Mendenhall Springs Quadrangle; (11) Then southeast in a straight line along the northern boundaries of (37) The boundary follows the Hetch for approximately 6.6 miles to Bally Section 13 and Section 18, Township 2 Hetchy Aqueduct southwesterly to the Peak (elevation 2,288 feet) on the Lower South, Range 3 East, to the northeast range line dividing Range 1 East from Lake Quadrangle; corner of Section 18 on the Byron Hot Range 2 East on the La Costa Valley (12) Then southeast in a straight line Springs Quadrangle; Quadrangle; for approximately 5.0 miles to the peak (26) The boundary proceeds due west (38) The boundary follows this range of Brushy Sky High Mountain (elevation along the northern boundaries of line south to its intersection with State 3,196 feet) on the Lower Lake Sections 18, 19, 30, and 31 in Township Route 130 on the Calaveras Reservoir Quadrangle; 2 South, Range 3 East, to the northeast Quadrangle; (13) Then southeast for approximately corner of Section 18 and the Byron Hot (39) The boundary follows State Route 11.4 miles following Putah Creek to the Springs Quadrangle; 130 southeasterly to its intersection boundary between Napa and Lake (27) Then proceed east along the with the township line dividing Countries on the Jericho Valley southern border of Section 32, Township 6 South from Township 7 Quadrangle; Township 2 South, Range 3 East to the South on the San Jose East Quadrangle; (14) Then southeast, crossing the northwest corner of Section 4 on the (40) From this point, the boundary Aetna Springs Quadrangle, following Altamont Quadrangle; proceeds in a straight line southeasterly

VerDate 112000 17:43 Sep 25, 2000 Jkt 190000 PO 00000 Frm 00022 Fmt 4702 Sfmt 4702 E:\FR\FM\26SEP1.SGM pfrm03 PsN: 26SEP1 57770 Federal Register / Vol. 65, No. 187 / Tuesday, September 26, 2000 / Proposed Rules to the intersection of the township line (53) The boundary follows the San generally northeastward, eastward, and dividing Township 7 South from Luis Obispo-Kern County line south, southeastward until the Temecula Township 8 South with the range line then east, then south to the point which viticultural area boundary again dividing Range 2 East from Range 3 East the county line diverges easterly from intersects the township line on the on the Lick Observatory Quadrangle; the range line dividing Range 17 East northern border of Township 7 South (41) From this point, the boundary from Range 18 East on the San Luis (in Range 4 West; thus all of the proceeds in a straight line southeasterly Obispo 1:250,000 map; Temecula viticultural area is included crossing the Morgan Hill Quadrangle to (54) The boundary follows this range inside of South Coast viticultural area as the intersection of the township line line south to the township line dividing described in section 9.104 of this part); dividing Township 8 South from Township 28 South from Township 29 (68) Then eastward, along the Township 9 South with the range line South on the San Luis Obispo 1:250,000 township line of the northern border of dividing Range 3 East from Range 4 East map; Township 7 South, to the San on the Mt. Sizer Quadrangle; (55) The boundary follows the Bernardino Meridian on the Santa Ana (42) From this point, the boundary township line west to the range line 1:250,000 map; proceeds in a straight line southeasterly dividing Range 13 East from Range 14 (69) Then southward along the San to the intersection of Coyote Creek with East on the San Luis Obispo 1:250,000 Bernardino Meridian to the Riverside the township line dividing Township 9 map; County-San Diego County line on the South from Township 10 South on the (56) The boundary follows this range Santa Ana 1:250,000 map; Gilroy Quadrangle; line south to the boundary of the Los (70) Then westward along the county (43) From this point, the boundary Padres National Forest on the San Luis 1 line for 7 ⁄2 miles, to the western proceeds in a straight line southeasterly Obispo 1:250,000 map; ′ boundary of the Cleveland National to the intersection of the 37 degree 00 (57) Then southeast following the Forest (near the Pechanga Indian North latitude parallel with State Route boundary of the Los Padres National Reservation on the Santa Ana 1:250,000 152 on the Gilroy Quadrangle; Forest across the San Luis Obispo and map); (44) The boundary follows the 37 Santa Maria 1:250,000 maps, to the (71) Then generally southeastward degree 00′ North latitude parallel east to Range Line dividing Range 21 and along the Cleveland National Forest the range line dividing Range 5 East Range 20 West on the Los Angeles boundary to where it joins California from Range 6 East on the Three Sisters 1:250,000 map; Highway 76 on the Santa Ana 1:250,000 Quadrangle; (58) Then southeast in a straight line map; (45) The boundary follows this range to an unnamed peak (elevation 1,925 line south to the San Benito-Santa Clara feet) on the Los Angeles 1:250,000 map; (72) From there generally County line on the Three Sisters (59) Then southeast in a straight line southeastward along Highway 76 to Quadrangle; to an unnamed peak (elevation 2,992 California Highway 79 on the Santa Ana (46) The boundary follows the San feet) on the Los Angeles 1:250,000 map; 1:250,000 map; Benito-Santa Clara County line easterly, (60) Then southeast in a straight line (73) Then southeastward along from the intersection with the Range 6 to an unnamed peak (elevation 4,003 Highway 79 to the township line on the East line to the San Benito-Merced feet) on the Los Angeles 1:250,000 map; northern border of Township 12 South County line on the Monterey 1:250,000 (61) Then southeast in a straight line (in Range 3 East) on the Santa Ana map; to an unnamed peak (elevation 3,839 1:250,000 map; (47) The boundary follows the San feet) on the Los Angeles 1:250,000 map; (74) Then eastward along that Benito-Merced County line (62) Then southeast on a straight line township line to its intersection with southeasterly to the conjunction of the to Strawberry peak (elevation 6,164 feet) the range line on the eastern border of county lines of San Benito, Merced, and on the Los Angeles 1:250,000 map; Range 3 East on the Santa Ana 1:250,000 Fresno counties on the Monterey (63) Then southeast in a straight line map; 1:250,000 map; to Johnstone Peak (elevation 3126 feet) (75) Then from there southward along (48) From this point, the boundary on the San Bernardino 1:250,000 map; that range line to U.S.-Mexico proceeds in a southwesterly extension (64) Then south to the intersection of international border on the Santa Ana of the Merced-Fresno County line to Salt the Orange County-San Bernardino 1:250,000 map and the San Diego Creek on the Monterey 1:250,000 map; County line on the Santa Ana 1:250,000 1:250,000 map; (49) From this point, the boundary map; (76) Then westward along that proceeds in a straight line southeasterly (65) Then eastward, and international border to the Pacific Ocean to the conjunction of the county lines of southeastward along the Orange County on the San Diego 1:250,000 map; Monterey, San Benito, and Fresno line, to the intersection of that county (77) Then generally northwestward Counties on the Monterey 1:250,000 line with the township line on the along the shore of the Pacific Ocean to map; northern border of Township 7 South the starting point crossing the San Diego (50) The boundary follows the (in Range 6 West; on the Santa Ana 1:250,000 map, the Santa Ana 1:250,000 Monterey-Fresno County line 1:250,000 map); map, the Long Beach 1:250,000 map, the southeasterly to the Monterey-Kings (66) Then from there eastward along Los Angeles 1:250,000 map, the Santa County line on the San Luis Obispo that township line to its intersection Maria 1:250,000 map, the Santa Luis 1:250,000 map; with the northern boundary of the Obispo 1:250,000 map, the Monterey (51) The boundary follows the Temecula viticultural area described in 1:250,000 map, the San Francisco Monterey-Kings County line section 9.50; of this part, the Temecula 1:250,000 map, on the Santa Rosa southeasterly to the San Luis Obispo- viticultural area boundary coincides 1:250,000 map. Kings County line on the San Luis with the boundary of the Cleveland Obispo 1:250,000 map; National Forest on the Wildomar Dated: September 19, 2000. (52) The boundary follows the San Quadrangle map; Bradley A. Buckles, Luis Obispo-Kings County line east to (67) Then following the northern Director. the San Luis Obispo-Kern County line of boundary of the Temecula viticultural [FR Doc. 00–24667 Filed 9–25–00; 8:45 am] the San Luis Obispo 1:250,000 map; area, at and near its northernmost point, BILLING CODE 4810±31±P

VerDate 112000 17:43 Sep 25, 2000 Jkt 190000 PO 00000 Frm 00023 Fmt 4702 Sfmt 4702 E:\FR\FM\26SEP1.SGM pfrm03 PsN: 26SEP1