[Federal Register: January 24, 2005 (Volume 70, Number 14)]
[Proposed Rules]
[Page 3333-3335]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr24ja05-15]
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DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade Bureau
27 CFR Part 9
[Notice No. 29]
RIN: 1513-AA72
Proposed Realignment of the Santa Lucia Highlands and Arroyo Seco
Viticultural Areas (2003R-083P)
AGENCY: Alcohol and Tobacco Tax and Trade Bureau, Treasury.
ACTION: Notice of proposed rulemaking.
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SUMMARY: The Alcohol and Tobacco Tax and Trade Bureau proposes to
realign a portion of the common boundary line between the established
Santa Lucia Highlands and Arroyo Seco viticultural areas in Monterey
County, California. We designate viticultural areas to allow vintners
to better describe the origin of their wines and to allow consumers to
better identify wines they may purchase. We invite comments on these
proposed amendments to our regulations.
DATES: We must receive written comments on or before March 25, 2005.
ADDRESSES: You may send comments to any of the following addresses:
Chief, Regulations and Procedures Division, Alcohol and
Tobacco Tax and Trade Bureau, Attn: Notice No. 29, P.O. Box 14412,
Washington, DC 20044-4412.
202-927-8525 (facsimile).
nprm@ttb.gov (e-mail).
http://www.ttb.gov/alcohol/rules/index.htm. An online
comment form is posted with this notice on our Web site.
http://www.regulations.gov (Federal e-rulemaking portal;
follow instructions for submitting comments).
You may view copies of this notice, the petition, the appropriate
maps, and any comments we receive about this proposal by appointment at
the TTB Library, 1310 G Street, NW., Washington, DC 20220. To make an
appointment, call 202-927-2400. You may also access copies of the
notice and comments online at http://www.ttb.gov/alcohol/rules/index.htm
.
See the Public Participation section of this notice for specific
instructions and requirements for submitting comments, and for
information on how to request a public hearing.
FOR FURTHER INFORMATION CONTACT: N.A. Sutton, Program Manager,
Regulations and Procedures Division, Alcohol and Tobacco Tax and Trade
Bureau, 925 Lakeville Street, 158, Petaluma, CA 94952;
telephone 415-271-1254.
SUPPLEMENTARY INFORMATION:
Background on Viticultural Areas
TTB Authority
Section 105(e) of the Federal Alcohol Administration Act (the FAA
Act, 27 U.S.C. 201 et seq.) requires that alcohol beverage labels
provide the consumer with adequate information regarding a product's
identity and prohibits the use of misleading information on those
labels. The FAA Act also authorizes the Secretary of the Treasury to
issue regulations to carry out its provisions. The Alcohol and Tobacco
Tax and Trade Bureau (TTB) administers these regulations.
Part 4 of the TTB regulations (27 CFR part 4) allows the
establishment of definitive viticultural areas and the use of their
names as appellations of origin on wine labels and in wine
advertisements. Part 9 of the TTB regulations (27 CFR part 9) contains
the list of approved viticultural areas.
Definition
Section 4.25(e)(1)(i) of the TTB regulations (27 CFR 4.25(e)(1)(i))
defines a viticultural area for American wine as a delimited grape-
growing region distinguishable by geographical features, the boundaries
of which have been recognized and defined in part 9 of the regulations.
These designations allow vintners and consumers to attribute a given
quality, reputation, or other characteristic of a wine made from grapes
grown in an area to its geographic origin. The establishment of
viticultural areas allows vintners to describe more accurately the
origin of their wines to consumers and helps consumers to identify
wines they may purchase. Establishment of a viticultural area is
neither an approval nor an endorsement by TTB of the wine produced in
that area.
Requirements
Section 4.25(e)(2) of the TTB regulations outlines the procedure
for proposing an American viticultural area and provides that any
interested party may petition TTB to establish a grape-growing region
as a viticultural area. Petitioners may use the same procedure to
request changes involving existing viticultural areas. Section 9.3(b)
of the TTB regulations requires the petition to include--
Evidence that the proposed viticultural area is locally
and/or nationally known by the name specified in the petition;
Historical or current evidence that supports setting the
boundary of the proposed viticultural area as the petition specifies;
Evidence relating to the geographical features, such as
climate, elevation, physical features, and soils, that distinguish the
proposed viticultural area from surrounding areas;
A description of the specific boundary of the proposed
viticultural area, based on features found on United States Geological
Survey (USGS) maps; and
A copy of the appropriate USGS map(s) with the proposed
viticultural area's boundary prominently marked.
Santa Lucia Highlands and Arroyo Seco Realignment Petition
Background
Paul Thorpe, on behalf of E. & J. Gallo Winery, submitted a
petition to TTB requesting the realignment of a portion of the common
boundary between the established Santa Lucia Highlands viticultural
area (27 CFR 9.139) and the established Arroyo Seco viticultural area
(27 CFR 9.59). Both viticultural areas are within the Monterey
viticultural area (27 CFR 9.98) in Monterey County, California, which
is in turn within the larger multi-county Central Coast viticultural
area (27 CFR 9.75).
Currently, the portion of the originally established common
boundary in question follows a straight line drawn between the
intersection of Paraiso and Clark Roads and the northeast corner of
section 5, T19S, R6E, as shown on the United States Geological Survey
(USGS) Paraiso Springs, California, quadrangle map.
The proposed realignment would move this portion of the two areas'
common boundary line about 1,000 to the east of the Paraiso and Clark
Roads intersection and less than 500 feet to the east of the northeast
corner of section 5, T19S, R6E. This realignment would transfer about
200 acres of land currently within the Arroyo Seco viticultural area to
the Santa Lucia Highlands area.
Rationale and Evidence for the Proposed Realignment
According to the petitioner, the proposed realignment of this
portion of the common boundary between the Santa Lucia Highlands and
Arroyo Seco viticultural areas would serve three purposes: (1) It would
bring the western boundary of the Arroyo Seco viticultural area into
conformity with the western boundary of the historical Arroyo Seco Land
Grant, which lends it name to the Arroyo Seco viticultural area; (2) it
would conform the boundary line to land ownership boundaries; and (3)
it would end the current division of the
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Olsen Ranch vineyards between the two viticultural areas.
Currently, a thin strip of land outside of the Arroyo Seco Land
Grant is within the western-most portion of the Arroyo Seco
viticultural area. By moving the common Santa Lucia Highlands and
Arroyo Seco boundary line to the east, the Arroyo Seco Land Grant and
Arroyo Seco viticultural area will have the same western boundary line.
The petitioner owns the Olsen Ranch, the great majority of which
lies within the Santa Lucia Highlands viticultural area. Currently, the
vineyards on the Olson Ranch, which were planted after the
establishment of the two viticultural areas, are divided between the
Arroyo Seco and Santa Lucia Highlands viticultural areas. By realigning
this portion of common boundary line between the two viticultural
areas, the Olson Ranch vineyards will be completely within the Santa
Lucia Highlands viticultural area.
The petition also explains that the dominant physical feature of
the proposed realignment area is the alluvial terracing that
differentiates the highlands along the western edge of the Salinas
Valley from the lower elevation valley floor. These terraces, which are
above 600 feet in elevation, match the terrain found in the Santa Lucia
Highlands viticultural area, the elevation of which is generally
between 600 feet and 1,200 feet, as the provided USGS map shows. Also,
the terraces and higher elevations of the Santa Lucia Highlands area
contrast to the flatter terrain and lower elevation valley floor found
in the Arroyo Seco viticultural area.
The primary soils of the proposed realignment area are of the
Arroyo Seco and Chualar series, according to the 1978 U.S. Department
of Agriculture Soil Survey of Monterey County, California, cited in the
petition. These soils are generally loam or gravelly, sandy loam, with
underlying very gravelly material, and they coincide with the dominant
soils of the Santa Lucia Highlands viticultural area, according to the
petition.
The petition states that the climatic conditions of the proposed
realignment area are similar to the Santa Lucia Highlands viticultural
area. The rainfall in the proposed realignment area and the Santa Lucia
Highlands area is 10 to 15 inches a year, according to the petition. In
contrast, the lower valley floor found in the Arroyo Seco viticultural
area averages less rain at 9.5 inches a year.
TTB Finding
Based on the information provided in the petition, we believe that
it is appropriate to propose the boundary realignment between the
Arroyo Seco and Santa Lucia Highlands viticultural areas requested in
the petition. Accordingly, we set forth below proposed amendments to
the boundary descriptions for the two viticultural areas found in
Sec. Sec. 9.59 and 9.139 of the TTB regulations.
Impact on Current Wine Labels
Part 4 of the TTB regulations prohibits any label reference on a
wine that indicates or implies an origin other than the wine's true
place of origin. If we realign the boundary between the established
Santa Lucia Highlands and Arroyo Seco viticultural areas, wine bottlers
using ``Santa Lucia Highlands'' or ``Arroyo Seco'' in a brand name,
including a trademark, or in another label reference as to the origin
of the wine, will still have to ensure that the product is eligible to
use the relevant viticultural area's name as an appellation of origin.
For a wine to be eligible to use as an appellation of origin the
name of a viticultural area specified in part 9 of the TTB regulations,
at least 85 percent of the grapes used to make the wine must have been
grown within the area represented by that name, and the wine must meet
the other conditions listed in 27 CFR 4.25(e)(3). If the wine is not
eligible to use the viticultural area name as an appellation of origin
and that name appears in the brand name, then the label is not in
compliance and the bottler must change the brand name and obtain
approval of a new label. Similarly, if the viticultural area name
appears in another reference on the label in a misleading manner, the
bottler would have to obtain approval of a new label. Accordingly, if a
new label or a previously approved label uses the names ``Santa Lucia
Highlands'' or ``Arroyo Seco'' for a wine that does not meet the 85
percent standard, the new label will not be approved, and the
previously approved label will be subject to revocation, upon the
effective date of the approval of the boundary change.
Different rules apply if a wine has a brand name containing a
viticultural area name that was used as a brand name on a label
approved before July 7, 1986. See 27 CFR 4.39(i)(2) for details.
Public Participation
Comments Invited
We invite comments from interested members of the public on whether
we should realign the portion of the common boundary between the Santa
Lucia Highlands and Arroyo Seco viticultural areas as described above.
We are especially interested in the use of the ``Santa Lucia
Highlands'' and ``Arroyo Seco'' names as they apply to the land within
the proposed realignment zone. We are also interested in comments on
the impact, if any, that the proposed viticultural areas' realignment
may have on current wine labels. Please support your comments with
specific information about the viticultural areas' names, boundaries,
distinguishing features, or impact on current wine labels.
Submitting Comments
Please submit your comments by the closing date shown above in this
notice. Your comments must include this notice number and your name and
mailing address. Your comments must be legible and written in language
acceptable for public disclosure. We do not acknowledge receipt of
comments, and we consider all comments as originals. You may submit
comments in one of five ways:
Mail: You may send written comments to TTB at the address
listed in the ADDRESSES section.
Facsimile: You may submit comments by facsimile
transmission to (202) 927-8525. Faxed comments must--
(1) Be on 8.5- by 11-inch paper;
(2) Contain a legible, written signature; and
(3) Be no more than five pages long. This limitation assures
electronic access to our equipment. We will not accept faxed comments
that exceed five pages.
E-mail: You may e-mail comments to nprm@ttb.gov. Comments
transmitted by electronic mail must--
(1) Contain your e-mail address;
(2) Reference this notice number on the subject line; and
(3) Be legible when printed on 8.5- by 11-inch paper.
Online form: We provide a comment form with the online
copy of this notice on our Web site at http://www.ttb.gov/alcohol/rules/index.htm.
Select the ``Send comments via e-mail'' link under
this notice number.
Federal e-Rulemaking Portal: To submit comments to us via
the Federal e-rulemaking portal, visit http://www.regulations.gov and
follow the instructions for submitting comments.
You may also write to the Administrator before the comment closing
date to ask for a public hearing. The Administrator reserves the right
to determine, in light of all circumstances, whether to hold a public
hearing.
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Confidentiality
All submitted material is part of the public record and subject to
disclosure. Do not enclose any material in your comments that you
consider confidential or inappropriate for public disclosure.
Public Disclosure
You may view copies of this notice, the petition, the appropriate
maps, and any comments we receive by appointment at the TTB Library at
1310 G Street, NW., Washington, DC 20220. You may also obtain copies at
20 cents per 8.5- by 11-inch page. Contact our librarian at the above
address or telephone (202) 927-2400 to schedule an appointment or to
request copies of comments.
For your convenience, we will post this notice and any comments we
receive on this proposal on the TTB Web site. We may omit voluminous
attachments or material that we consider unsuitable for posting. In all
cases, the full comment will be available in the TTB Library. To access
the online copy of this notice, visit http://www.ttb.gov/alcohol/rules/index.htm.
Select the ``View Comments'' link under this notice number
to view the posted comments.
Regulatory Flexibility Act
We certify that this proposed regulation, if adopted, would not
have a significant economic impact on a substantial number of small
entities. The proposed regulation imposes no new reporting,
recordkeeping, or other administrative requirement. Any benefit derived
from the use of a viticultural area name would be the result of a
proprietor's efforts and consumer acceptance of wines from that area.
Therefore, no regulatory flexibility analysis is required.
Executive Order 12866
This proposed rule is not a significant regulatory action as
defined by Executive Order 12866, 58 FR 51735. Therefore, it requires
no regulatory assessment.
Drafting Information
Nancy Sutton of the Regulations and Procedures Division drafted
this notice.
List of Subjects in 27 CFR Part 9
Wine.
Proposed Regulatory Amendment
For the reasons discussed in the preamble, we propose to amend
title 27, chapter 1, part 9, Code of Federal Regulations, as follows:
PART 9--AMERICAN VITICULTURAL AREAS
1. The authority citation for part 9 continues to read as follows:
Authority: 27 U.S.C. 205.
2. Section 9.59 is amended by revising paragraph (c)(13),
redesignating paragraphs (c)(14) through (c)(19) as (c)(16) through
(c)(21), and adding new paragraphs (c)(14) and (c)(15) to read as
follows:
Sec. 9.59 Arroyo Seco.
* * * * *
(c) Boundary. * * *
* * * * *
(13) Then east-northeasterly along Clark Road for approximately
1,000 feet to its intersection with an unnamed light-duty road to the
south.
(14) Then in a straight south-southeasterly line for approximately
1.9 miles to the line's intersection with the southeast corner of
section 33, T18S, R6E (this line coincides with the unnamed light duty
road for approximately 0.4 miles and later with the eastern boundaries
of sections 32 and 33, T18S, R6E, which mark the western boundary of
the historical Arroyo Seco Land Grant).
(15) Then straight west along the southern boundary of section 33,
T18S, R6E, to its southwest corner.
* * * * *
3. Section 9.139 is amended by revising paragraphs (c)(9) and
(c)(10), redesignating paragraphs (c)(11) through (c)(21) as (c)(12)
through (c)(22), and adding new paragraph (c)(11) to read as follows:
Sec. 9.139 Santa Lucia Highlands.
* * * * *
(c) Boundary. * * *
* * * * *
(9) Then east-northeasterly along Clark Road for approximately
1,000 feet to its intersection with an unnamed light-duty road to the
south.
(10) Then in a straight south-southeasterly line for approximately
1.9 miles to the line's intersection with the southeast corner of
section 33, T18S, R6E (this line coincides with the unnamed light duty
road for about 0.4 miles and later with the eastern boundaries of
sections 32 and 33, T18S, R6E, which mark the western boundary of the
historical Arroyo Seco Land Grant).
(11) Then straight west along the southern boundaries of sections
33, 32, and 31, T18S, R6E, to the southwest corner of section 31.
* * * * *
Signed: January 10, 2005.
John J. Manfreda,
Administrator.
[FR Doc. 05-1192 Filed 1-21-05; 8:45 am]
BILLING CODE 4810-31-P