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. VerDate Sep<11>2014 15:42 Aug 24, 2021 Jkt 253001 PO 00000 Frm 00001 Fmt 4700 Sfmt 4700 E:\FR\FM\25AUR1.SGM 25AUR1 khammond on DSKJM1Z7X2PROD with RULES 47378 Federal Register / Vol. 86, No. 162 / Wednesday, August 25, 2021 / Rules and Regulations 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.