[Federal Register: November 8, 2006 (Volume 71, Number 216)]
[Rules and Regulations]
[Page 65409-65412]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr08no06-9]
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DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade Bureau
27 CFR Part 9
[T.D. TTB-54; Re: Notice No. 54]
RIN 1513-AA89
Establishment of the Tracy Hills Viticultural Area (2003R-508P)
AGENCY: Alcohol and Tobacco Tax and Trade Bureau, Treasury.
ACTION: Final rule; Treasury decision.
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SUMMARY: This Treasury decision establishes the 39,200-acre Tracy Hills
viticultural area in San Joaquin and Stanislaus Counties, California,
approximately 55 miles east-southeast of San Francisco. 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.
DATES: Effective Dates: December 8, 2006.
FOR FURTHER INFORMATION CONTACT: N.A. Sutton, Regulations and Rulings
Division, Alcohol and Tobacco Tax and Trade Bureau, 925 Lakeville St.,
No. 158, Petaluma, CA 94952; phone 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 consumers with adequate information regarding product 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 geographical 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. 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, soils, elevation, and physical features, 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.
Tracy Hills Petition and Rulemaking
General Background
TTB received a petition from Sara Schorske of Compliance Service of
America, Inc., filed on behalf of the Brown family, owners of a
vineyard near Tracy, California. The petition proposed the
establishment of the 39,200-acre ``Tracy Hills'' viticultural area
south and southwest of the city of Tracy, California, in southern San
Joaquin and northern Stanislaus Counties. Located approximately 55
miles east-southeast of San Francisco, the proposed Tracy Hills
viticultural area currently encompasses 1,005 acres of vineyards. The
proposed area is not within, nor does it include, any other proposed or
established viticultural area.
Originally, the petitioner submitted the name ``Mt. Oso'' for this
proposed viticultural area. However, after an initial review of the
petition, TTB concluded and advised the petitioner that the submitted
evidence did not demonstrate, as required by Sec. 9.3(b)(1) of the TTB
regulations, that the proposed viticultural area is locally or
nationally known as Mt. Oso. In response, the petitioner amended the
petition to propose use of the name ``Tracy Hills'' for the proposed
viticultural area. The petitioner also revised the proposed
viticultural area's western boundary and submitted additional evidence
to support the amended petition. We summarize below the information
submitted in support of the petition.
Name Evidence
The petitioner states that the name ``Tracy,'' which is used to
identify the city of Tracy, California, and its surrounding
agricultural land, together with the geographical modifier ``Hills,''
accurately describes and identifies the proposed Tracy Hills
viticultural area. Stating that the name ``Tracy Hills'' is ``locally
and nationally associated with the proposed area,'' the petition
discusses the rationale for the Tracy Hills name and offers examples of
its
[[Page 65410]]
use for the land within the proposed viticultural area.
The petition includes copies of eight newspaper articles from the
Tracy Press featuring petitioner Jeff Brown's Mt. Oso Vineyards or
wines made from its grapes. The articles list the vineyard's location
as Tracy, demonstrating, according to the petition, the close
association between the proposed area's vineyards and the ``Tracy''
name.
However, the petition states that the use of ``Tracy'' alone for
the proposed viticultural area does not accurately describe the area
and would mislead consumers about the specific location of the area.
The proposed viticultural area includes only a small part of the land
within the Tracy city limits, and it does not include all the land
surrounding the city of Tracy. Due to differences in climate, soil,
water table levels, and slope, the land north, east, and southeast of
Tracy is excluded from the proposed viticultural area.
Therefore, the petitioner emphasizes that it would be misleading
and inaccurate to name the proposed viticultural area ``Tracy,''
without adding ``Hills'' as a modifier. In support of this usage, the
petitioner cites the use of ``Valley'' as a modifier in the names of
the Napa Valley viticultural area (27 CFR 9.23), which surrounds the
city of Napa, and the Temecula Valley viticultural area (27 CFR 9.50),
which lies outside the city of Temecula in southern California.
To further support the use of the proposed ``Tracy Hills'' name,
the petitioner notes that the foothills of the Coast Range southwest of
the city of Tracy are informally called ``the Tracy Hills,'' the lower
elevations of which are included within the proposed viticultural area.
The petition provides examples of the name's association with the
proposed area.
The petition states that ``Tracy Hills'' is the name of a large
real estate development located on the southwest side of the city of
Tracy along either side of Interstate 580 (I-580). Part of the Tracy
Hills development, the petition notes, is within the northern portion
of the proposed Tracy Hills viticultural area. In 1998, the city of
Tracy annexed the development, according to an article in the Stockton
Record of July 7, 2004, ``Council Delays Tracy Hills Vote,'' included
in the revised petition. The revised petition also included copies of,
or statements from, Federal Government environmental reports from the
early 1990's, a 1999 Sierra Club newsletter, and newspaper articles
from the Sacramento Bee and the Tracy Press that all discuss the Tracy
Hills real estate development and its location, growth, and impact on
local water resources.
Also, the petition includes evidence of other references to the
Tracy Hills name. For example, the petition includes a map of the
proposed Northern California Passenger Rail Network. This map shows a
future high-speed railroad line running through Altamont Pass and, east
of the pass, a ``Tracy Hills'' station within the Tracy Hills
development. The petition also includes information about the ``Tracy
Hills Ride,'' sponsored by the San Joaquin Valley Rangers, a family
horse/mule club (http://www.sjvr.org). This horseback ride begins and
ends within the proposed viticultural area along State Highway 132
(Bird Road), according to club information included in the petition. A
1995 NASCAR publication, the petition states, places the reopened
Altamont Raceway ``in the Tracy hills,'' while a September 29, 2003,
East Bay Business Times article titled ``Sutter, Kaiser Build Up Valley
Presence,'' notes that a donor gave 20 acres ``in the Tracy hills'' for
a hospital.
Boundary Evidence
Located south and southwest of the city of Tracy in southern San
Joaquin and northern Stanislaus Counties, California, the proposed
Tracy Hills viticultural area largely lies between State Route 33 to
the east and I-580 to the west, with a portion of the area reaching
west of the interstate into the foothills of the Diablo Mountains. The
proposed area is about 15 miles long northwest to southeast and about 5
miles wide east to west.
The portion of the Tracy Hills real estate development appropriate
for viticulture, the petitioner explains, is included in the northern
region of the proposed Tracy Hills viticultural area. Other parts of
the proposed viticultural area lie within the San Joaquin Valley's
rural agricultural lands to the southwest and south of the city of
Tracy, according to the provided USGS maps and the California State
Automobile Association Central California map of May 2001.
Distinguishing Features
The boundary of the proposed Tracy Hills viticultural area,
according to the petitioner, encompasses viticultural features that
distinguish the proposed viticultural area from the regions north,
east, and southeast of the city of Tracy. According to the petitioner,
these distinguishing features include the proposed area's slope, soils,
and microclimate.
Slope
The proposed Tracy Hills viticultural area is nestled between the
lower elevations of the floor of the San Joaquin River Valley to the
east and the steeper terrain of the Diablo Range to the west; it has
east-sloping terrain, as shown on the provided USGS maps. The proposed
viticultural area boundary encompasses a 400-foot change in elevation
and includes streams, most of a northern, east-sloping alluvial fan and
part of a southern, east-sloping alluvial fan, and plains along the
proposed southern boundary line, according to the petitioner and the
provided USGS maps. The alluvial fans are between Lone Tree and
Hospital Creeks and between Hospital Creek and Ingram Canyon Road,
which parallels an unnamed intermittent creek.
The petitioner notes that the 100-to 500-foot elevation within the
proposed Tracy Hills viticultural area is distinct from the surrounding
areas. To the west of the proposed boundary line are the significantly
higher elevations and steep terrain of the Diablo Range, as noted on
USGS maps of the area. To the north and east, nearly at sea level, are
the flood plains along the San Joaquin River. The proposed southern
boundary line, according to the written boundary description and the
Solyo Quadrangle USGS map, includes a straight line connecting the 500-
foot elevation, to the southwest, with Hamilton Road on the valley
floor. Hamilton Road eventually connects with McCracken Road at the
proposed southeast corner.
Soils
The petitioner states that soils in the proposed Tracy Hills
viticultural area formed predominantly in alluvium washed from the
higher areas in the Diablo Range, beyond the proposed boundary.
Although similar to the soils to the south, the petitioner explains,
the alluvial soils of the proposed viticultural area are distinct from
the soils formed in sedimentary rocks of the mountains to the west, the
organic, peat soils to the north, and the heavy clay soils to the east.
Microclimate
The petitioner states that the proposed Tracy Hills viticultural
area has a distinctive microclimate, contrasting with the climate of
the surrounding region. The proposed viticultural area, the petition
states, is located within the rain shadow of Mt. Oso, which is located
southwest of the proposed area, in the Diablo Mountains. The effect of
the rain shadow is to give the proposed viticultural area a drier
[[Page 65411]]
climate with less fog, dew, frost, and hail. Beyond the proposed
boundary to the west, north, and south, the distinctive differences in
geography and proximity to the Altamont Pass create a wetter, windier
climate, according to the petition.
Notice of Proposed Rulemaking and Comments Received
On December 7, 2005, TTB published in the Federal Register (70 FR
72733) Notice No. 54 regarding the proposed establishment of the Tracy
Hills viticultural area. We received one comment in response to that
notice. The comment supported establishment of the Tracy Hills
viticultural area, expressing potential increased value for wine grapes
grown in the area and prevention of urban sprawl.
TTB Finding
After review of the petition and the comment received, TTB finds
that the evidence submitted supports the establishment of the proposed
viticultural area. Therefore, under the authority of the Federal
Alcohol Administration Act and part 4 of our regulations, we establish
the ``Tracy Hills'' viticultural area in San Joaquin and Stanislaus
Counties, California, effective 30 days from the publication date of
this document.
Boundary Description
See the narrative boundary description of the viticultural area in
the regulatory text published at the end of this document.
Maps
The maps for determining the boundary of the viticultural area are
listed below in the regulatory text.
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. With the establishment of this viticultural area and
its inclusion in part 9 of the TTB regulations, its name, ``Tracy
Hills,'' is recognized under 27 CFR 4.39(i)(3) as a name of
viticultural significance. The text of the new regulation clarifies
this point. Consequently, wine bottlers using ``Tracy Hills'' in a
brand name, including a trademark, or in another label reference as to
the origin of the wine, must ensure that the product is eligible to use
the viticultural area's name as an appellation of origin.
For a wine to be eligible to use as an appellation of origin a
viticultural area name or other term specified as being viticulturally
significant in part 9 of the TTB regulations, at least 85 percent of
the wine must be derived from grapes grown within the area represented
by that name or other term, 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 or other term as an appellation of origin and
that name or term 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 or
other term appears in another reference on the label in a misleading
manner, the bottler would have to obtain approval of a new label.
Different rules apply if a wine has a brand name containing 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.
Regulatory Flexibility Act
We certify that this regulation will not have a significant
economic impact on a substantial number of small entities. This
regulation imposes no new reporting, recordkeeping, or other
administrative requirement. Any benefit derived from the use of a
viticultural area name is 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 rule is not a significant regulatory action as defined by
Executive Order 12866, 58 FR 51735. Therefore, it requires no
regulatory assessment.
Drafting Information
N.A. Sutton of the Regulations and Rulings Division drafted this
document.
List of Subjects in 27 CFR Part 9
Wine.
The Regulatory Amendment
0
For the reasons discussed in the preamble, we amend 27 CFR, chapter 1,
part 9, as follows:
PART 9--AMERICAN VITICULTURAL AREAS
0
1. The authority citation for part 9 continues to read as follows:
Authority: 27 U.S.C. 205.
Subpart C--Approved American Viticultural Areas
0
2. Subpart C is amended by adding Sec. 9.204 to read as follows:
Sec. 9. 204 Tracy Hills.
(a) Tracy Hills. The name of the viticultural area described in
this section is ``Tracy Hills''. For purposes of part 4 of this
chapter, ``Tracy Hills'' is a term of viticultural significance.
(b) Approved maps. The appropriate maps for determining the
boundary of the Tracy Hills viticultural area are five USGS 1:24,000-
scale, topographic maps. They are titled:
(1) Tracy, Calif., 1954, photorevised 1981;
(2) Vernalis, CA, 1991;
(3) Solyo, Calif., 1953, photorevised 1971, photoinspected 1978;
(4) Lone Tree Creek, Calif., 1955, photorevised 1971; and
(5) Midway Calif., 1953, photorevised 1980.
(c) Boundary. The Tracy Hills viticultural area is located in
southwestern San Joaquin County and northwestern Stanislaus County in
the State of California. The boundary of the Tracy Hills viticultural
area is as described below.
(1) The beginning point is on the Tracy map at the intersection of
the Delta-Mendota Canal and Lammers Ferry Road, along the western
boundary line of section 6, T3S/R5E. From the beginning point, proceed
0.4 mile generally southeast along the Delta-Mendota Canal to its
intersection with the Western Pacific Railway line along the southern
boundary line of section 6, T3S/R5E (Tracy map); then
(2) Proceed 5.6 miles straight east along the Western Pacific
Railway line and then along Linne Road to the intersection of Linne
Road and Lehman Road, along the northern boundary line of section 12,
T3S/R5E (Vernalis map); then
(3) Proceed 1.5 miles straight south and then east along Lehman
Road to its intersection with Bird Road at the southeast corner of
section 12, T3S/R5E (Vernalis map); then
(4) Proceed 1 mile straight south along Bird Road to its
intersection with Durham Ferry Road at the southeast corner of section
13, T3S/R5E (Vernalis map); then
(5) Proceed 1.9 miles straight east along Durham Ferry Road to its
intersection with State Highway 33 along the northern boundary line of
section 20, T3S/R6E (Vernalis map); then
(6) Proceed 5.1 miles straight southeast along State Highway 33,
passing the hamlet of Vernalis, to the highway's intersection with
McCracken Road along the eastern boundary of section 2, T4S/R6E (Solyo
map); then
(7) Proceed 3.4 miles straight south along McCracken Road to its
[[Page 65412]]
intersection with Hamilton Road at the southeast corner of section 23,
T4S/R6E (Solyo map); then
(8) Proceed 2.4 miles straight west along the southern boundary
lines of sections 23, 22, and 21, T4S/R6E, crossing the Delta-Mendota
Canal and the California Aqueduct, to the junction of the southern
boundary of section 21, the 500-foot elevation line, and the
westernmost transmission line, (Solyo map); then
(9) Proceed 4.2 miles generally northwest along the meandering 500-
foot elevation line to section 18, T4S/R6E, where the 500-foot
elevation line crosses all the transmission lines and then continues
northwest a short distance to the easternmost transmission line in the
northwest quadrant of section 18, T4S/R6E, (Solyo map); then
(10) Proceed 8.45 miles straight northwest along the easternmost
transmission line, crossing from the Solyo map, over the Lone Tree
Creek map, to the Tracy map, and continue to the transmission line's
intersection with the western boundary of section 19, T3S/R5W, about
0.7 mile north-northeast of Black Butte (Tracy map); then
(11) Proceed in a straight line 2 miles northwest to this line's
intersection with the 500-foot elevation line, immediately north of an
unimproved dirt road, just north of the midpoint of the western
boundary line of section 12, T3S/R4E (Tracy map); then
(12) Proceed 0.65 mile straight north along the western boundaries
of section 12 and then section 1 to the section 1 line's intersection
with Interstate Highway 580 (I-580), section 1, T3S/R4E (Tracy map);
then
(13) Proceed 0.8 mile straight northwest along I-580 to its
intersection with the Western Pacific Railway line in section 2, T3S/
R4E (Midway map); then
(14) Proceed easterly 0.7 mile along the Western Pacific Railway
line to its intersection with the eastern boundary line of section 2,
T3S/R4E (Tracy map); and
(15) Proceed east for 1 mile in a straight line, returning to the
beginning point.
Signed September 7, 2006.
John J. Manfreda,
Administrator.
Approved: September 23, 2006.
Timothy E. Skud,
Deputy Assistant Secretary, (Tax, Trade, and Tariff Policy).
[FR Doc. E6-18894 Filed 11-7-06; 8:45 am]
BILLING CODE 4810-31-P