81_FR_3340 81 FR 3327 - Establishment of the Los Olivos District Viticultural Area

81 FR 3327 - Establishment of the Los Olivos District Viticultural Area

DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade Bureau

Federal Register Volume 81, Issue 13 (January 21, 2016)

Page Range3327-3329
FR Document2016-01155

The Alcohol and Tobacco Tax and Trade Bureau (TTB) establishes the approximately 22,820-acre ``Los Olivos District'' viticultural area in Santa Barbara County, California. The viticultural area is located within the Santa Ynez Valley viticultural area and the larger, multicounty Central Coast viticultural area. TTB designates viticultural areas to allow vintners to better describe the origin of their wines and to allow consumers to better identify wines they may purchase.

Federal Register, Volume 81 Issue 13 (Thursday, January 21, 2016)
[Federal Register Volume 81, Number 13 (Thursday, January 21, 2016)]
[Rules and Regulations]
[Pages 3327-3329]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-01155]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 9

[Docket No. TTB-2015-0004; T.D. TTB-132; Ref: Notice No. 148]
RIN 1513-AC11


Establishment of the Los Olivos District Viticultural Area

AGENCY: Alcohol and Tobacco Tax and Trade Bureau, Treasury.

ACTION: Final rule; Treasury decision.

-----------------------------------------------------------------------

SUMMARY: The Alcohol and Tobacco Tax and Trade Bureau (TTB) establishes 
the approximately 22,820-acre ``Los Olivos District'' viticultural area 
in Santa Barbara County, California. The viticultural area is located 
within the Santa Ynez Valley viticultural area and the larger, 
multicounty Central Coast viticultural area. TTB designates 
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: This final rule is effective February 22, 2016.

FOR FURTHER INFORMATION CONTACT: Karen A. Thornton, Regulations and 
Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G 
Street NW., Box 12, Washington, DC 20005; phone 202-453-1039, ext. 175.

SUPPLEMENTARY INFORMATION:

Background on Viticultural Areas

TTB Authority

    Section 105(e) of the Federal Alcohol Administration Act (FAA Act), 
27 U.S.C. 205(e), authorizes the Secretary of the Treasury to prescribe 
regulations for the labeling of wine, distilled spirits, and malt 
beverages. The FAA Act provides that these regulations should, among 
other things, prohibit consumer deception and the use of misleading 
statements on labels and ensure that labels provide the consumer with 
adequate information as to the identity and quality of the product. The 
Alcohol and Tobacco Tax and Trade Bureau (TTB) administers the FAA Act 
pursuant to section 1111(d) of the Homeland Security Act of 2002, 
codified at 6 U.S.C. 531(d). The Secretary has delegated various 
authorities through Treasury Department Order 120-01, dated December 
10, 2013 (superseding Treasury Department Order 120-01, dated January 
24, 2003), to the TTB Administrator to perform the functions and duties 
in the administration and enforcement of these provisions.
    Part 4 of the TTB regulations (27 CFR part 4) authorizes TTB to 
establish definitive viticultural areas and regulate 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) sets 
forth standards for the preparation and submission of petitions for the 
establishment or modification of American viticultural areas (AVAs) and 
lists the approved AVAs.

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 having distinguishing features, as described in part 9 
of the regulations, and a name and a delineated boundary, as 
established 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 the 
wine's geographic origin. The establishment of AVAs allows vintners to 
describe more accurately the origin of their wines to consumers and 
helps consumers to identify wines they may purchase. Establishment of 
an AVA 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 (27 CFR 4.25(e)(2)) 
outlines the procedure for proposing an AVA and provides that any 
interested party may petition TTB to establish a grape-growing region 
as an AVA. Section 9.12 of the TTB regulations (27 CFR 9.12) prescribes 
standards for petitions for the establishment or modification of AVAs. 
Petitions to establish an AVA must include the following:
     Evidence that the area within the proposed AVA boundary is 
nationally or locally known by the AVA name specified in the petition;
     An explanation of the basis for defining the boundary of 
the proposed AVA;
     A narrative description of the features of the proposed 
AVA affecting viticulture, such as climate, geology, soils, physical 
features, and elevation, that make the proposed AVA distinctive and 
distinguish it from adjacent areas outside the proposed AVA boundary;
     The appropriate United States Geological Survey (USGS) 
map(s) showing the location of the proposed AVA, with the boundary of 
the proposed AVA clearly drawn thereon; and
     A detailed narrative description of the proposed AVA 
boundary based on USGS map markings.

Los Olivos District Petition

    TTB received a petition from C. Frederic Brander, owner and 
winemaker of the Brander Vineyard, proposing the establishment of the 
``Los Olivos District'' AVA in Santa Barbara County, California. There 
are 12 bonded wineries and approximately 47 commercially producing 
vineyards covering a total of 1,120 acres within the proposed AVA. The 
proposed Los Olivos District AVA shares its western boundary with the 
eastern boundary of the Ballard Canyon AVA (27 CFR 9.230) and its 
eastern boundary with the western boundary of the Happy Canyon of Santa 
Barbara AVA (27 CR 9.217), but it does not overlap either of these 
AVAs. It is located within the Santa Ynez Valley viticultural area and 
the larger, multicounty Central Coast viticultural area.
    According to the petition, the distinguishing features of the 
proposed Los Olivos District AVA include its topography, soils, and 
climate. The proposed AVA is located on a broad alluvial terrace plain 
of the Santa Ynez

[[Page 3328]]

River. The topography of the proposed AVA is relatively uniform, with 
nearly flat terrain that gently slopes southward toward the Santa Ynez 
River. The lack of steeply sloped hills reduces the risk of erosion and 
facilitates mechanical tiling and harvesting in the vineyards. 
Additionally, the open terrain allows vineyards throughout the proposed 
AVA to receive uniform amounts of sunlight, rainfall, and temperature-
moderating fog because there are no significant hills or mountains 
within the proposed AVA to block the rainfall and fog or to shade the 
vineyards. By contrast, the regions surrounding the proposed Los Olivos 
District all have higher elevations and steep, rugged terrain.
    Over 95 percent of the soils within the proposed Los Olivos 
District AVA are from the Positas-Ballard-Santa Ynez soil association 
and are derived from alluvium, including Orcutt sand and terrace 
deposits. The soils are moderately to well drained gravelly fine sandy 
loams and clay loams with low to moderate fertility. The soils within 
the proposed AVA drain quickly enough to reduce the risk of root 
disease but do not drain so excessively as to require frequent 
irrigation. Soil nutrient levels within the proposed AVA are adequate 
to produce healthy vines and fruit without promoting excessive growth. 
By contrast, the majority of soils in the surrounding regions are not 
from the Positas-Ballard-Santa Ynez soil association and are generally 
less fertile and drain faster.
    Within the Central Coast AVA, where the proposed Los Olivos 
District AVA is located, temperatures are affected by cooling marine 
fog. However, the proposed Los Olivos District AVA is located about 30 
miles inland from the Pacific Ocean, so much of the marine fog has 
diminished by the time it reaches the proposed AVA in the late 
afternoon. The thin fog within the proposed AVA allows the daytime 
temperatures to rise higher and the nighttime temperatures to drop 
lower than in the regions farther to the west, where heavy fog is 
present throughout the day. The region to the east receives even less 
fog than the proposed AVA, so daytime temperatures rise higher and 
nighttime temperatures drop lower. The warm daytime temperatures within 
the proposed AVA encourage fruit maturation and sugar production, and 
the cool nighttime temperatures minimize acid loss.

Notice of Proposed Rulemaking and Comments Received

    TTB published Notice No. 148 in the Federal Register on March 3, 
2015 (80 FR 11355), proposing to establish the Los Olivos District AVA. 
In the document, TTB summarized the evidence from the petition 
regarding the name, boundary, and distinguishing features for the 
proposed AVA. The document also compared the distinguishing features of 
the proposed AVA to the surrounding areas. In Notice No. 148, TTB 
solicited comments on the accuracy of the name, boundary, and other 
required information submitted in support of the petition. In addition, 
TTB solicited comments on whether the geographic features of the 
proposed Los Olivos District are so distinguishable from the 
established Santa Ynez Valley AVA and the Central Coast AVA that the 
proposed AVA should not be part of either established AVA. The comment 
period closed on May 4, 2015.
    In response to Notice No. 148, TTB received 76 comments, all of 
which supported the establishment of the Los Olivos District AVA, with 
many citing to its distinct topography, climate, and soils. The 
comments did not raise any new issues concerning the proposed AVA. TTB 
received no comments opposing the establishment of the Los Olivos 
District AVA. TTB also did not receive any comments in response to its 
question of whether the proposed Los Olivos District AVA is so 
distinguishable from the established Santa Ynez Valley AVA or the 
established Central Coast AVA that the proposed AVA should not be part 
of either established AVA.

TTB Determination

    After careful review of the petition and the comment received in 
response to Notice No. 148, TTB finds that the evidence provided by the 
petitioner supports the establishment of the Los Olivos District AVA. 
Accordingly, under the authority of the FAA Act, section 1111(d) of the 
Homeland Security Act of 2002, and part 4 of the TTB regulations, TTB 
establishes the ``Los Olivos District'' AVA in Santa Barbara County, 
California, effective 30 days from the publication date of this 
document.
    TTB has also determined that the Los Olivos District AVA will 
remain part of both the established Santa Ynez Valley AVA and the 
established Central Coast AVA. As discussed in Notice No. 148, the Los 
Olivos District AVA receives some of the marine breezes and fog that 
are the primary characteristics of both the Santa Ynez Valley AVA and 
the Central Coast AVA. However, due to its central location within the 
Santa Ynez Valley AVA, the Los Olivos District AVA receives less marine 
air and heavy fog than the western portion of the Santa Ynez Valley 
AVA, which is closer to the Pacific Ocean, and it receives more cooling 
breezes and fog than the eastern portion. The topography of the Los 
Olivos District AVA is also more uniform than that of the Santa Ynez 
Valley AVA, which has mountains and canyons as well as flatter terrain. 
Additionally, due to its smaller size, the Los Olivos District AVA is 
more uniform in its geographical and climatic characteristics than the 
much larger, multicounty Central Coast AVA.

Boundary Description

    See the narrative description of the boundary of the AVA in the 
regulatory text published at the end of this final rule.

Maps

    The petitioner provided the required maps, and they 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. For a wine to be labeled with an AVA name or with a 
brand name that includes an AVA name, at least 85 percent of the wine 
must be derived from grapes 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 for labeling with an AVA name 
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 AVA name 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 an AVA 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.
    With the establishment of this AVA, its name, ``Los Olivos 
District,'' is recognized as a name of viticultural significance under 
Sec.  4.39(i)(3) of the TTB regulations (27 CFR 4.39(i)(3)). The text 
of the regulation clarifies this point. Consequently, wine bottlers 
using the name ``Los Olivos District'' in a brand name, including a 
trademark, or in another label reference as to the origin of the wine, 
will have to ensure that the product is eligible to use the AVA name as 
an appellation of origin. In Notice No. 148, TTB proposed to recognize 
``Los Olivos,'' standing alone, as a term of viticultural significance. 
However TTB is not designating ``Los Olivos,''

[[Page 3329]]

standing alone, as a term of viticultural significance in this final 
rule. We make this change in light of new information concerning the 
current use of ``Los Olivos'' on wine labels.
    The approval of the Los Olivos District AVA does not affect any 
existing AVA, and this approval does not affect any bottlers using 
``Central Coast'' or ``Santa Ynez Valley'' as an appellation of origin 
or in a brand name for wines made from grapes grown within the Central 
Coast or Santa Ynez Valley AVAs. The establishment of the Los Olivos 
District AVA allows vintners to use ``Los Olivos District,'' ``Santa 
Ynez Valley,'' and ``Central Coast'' as appellations of origin for 
wines made from grapes grown within the Los Olivos District AVA, if the 
wines meet the eligibility requirements for the appellation.

Regulatory Flexibility Act

    TTB certifies that this regulation will not have a significant 
economic impact on a substantial number of small entities. The 
regulation imposes no new reporting, recordkeeping, or other 
administrative requirement. Any benefit derived from the use of an AVA 
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

    It has been determined that this final rule is not a significant 
regulatory action as defined by Executive Order 12866 of September 30, 
1993. Therefore, no regulatory assessment is required.

Drafting Information

    Karen A. Thornton of the Regulations and Rulings Division drafted 
this final rule.

List of Subjects in 27 CFR Part 9

    Wine.

The Regulatory Amendment

    For the reasons discussed in the preamble, TTB amends title 27, 
chapter I, part 9, Code of Federal Regulations, 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. Add Sec.  9.253 to subpart C to read as follows:


Sec.  9.253  Los Olivos District.

    (a) Name. The name of the viticultural area described in this 
section is ``Los Olivos District''. For purposes of part 4 of this 
chapter, ``Los Olivos District'' is a term of viticultural 
significance.
    (b) Approved maps. The four United States Geological Survey (USGS) 
1:24,000 scale topographic maps used to determine the boundary of the 
Los Olivos District viticultural area are titled:
    (1) Los Olivos, CA, 1995;
    (2) Zaca Creek, Calif., 1959;
    (3) Solvang, CA, 1995; and
    (4) Santa Ynez, CA, 1995.
    (c) Boundary. The Los Olivos District viticultural area is located 
in Santa Barbara County, California. The boundary of the Los Olivos 
District viticultural area is as described below:
    (1) The beginning point is on the Los Olivos map at the 
intersection of Foxen Canyon Road with California State Road 154 (known 
locally as San Marcos Pass Road/Chumash Highway), section 23, T7N/R31W.
    (2) From the beginning point, proceed southwesterly in a straight 
line approximately 0.3 mile, crossing onto the Zaca Creek map, to the 
intersection of Ballard Canyon Road and an unnamed, unimproved road 
known locally as Los Olivos Meadows Drive, T7N/R31W; then
    (3) Proceed south-southeasterly in a straight line approximately 1 
mile, crossing onto the Los Olivos map, to a marked, unnamed structure 
within a circular-shaped 920-foot contour line in the southwest corner 
of section 26, T7N/R31W; then
    (4) Proceed south-southwesterly in a straight line approximately 
1.25 miles, crossing onto the Zaca Creek map, to the point marked by 
the ``Ball'' 801-foot elevation control point, T6N/R31W; then
    (5) Proceed south-southwesterly in a straight line approximately 
1.45 miles, crossing onto the Solvang map, to a marked, unnamed 775-
foot peak, T6N/R31W; then
    (6) Proceed south-southwesterly in a straight line approximately 
0.55 mile to a marked communication tower located within the 760-foot 
contour line, T6N/R31W; then
    (7) Proceed south-southeasterly in a straight line approximately 
0.6 mile to the intersection of Chalk Hill Road with an unnamed creek 
descending from Adobe Canyon, northwest of the unnamed road known 
locally as Fredensborg Canyon Road, T6N/R31W; then
    (8) Proceed southwesterly (downstream) along the creek 
approximately 1 mile to the creek's intersection with the Santa Ynez 
River, T6N/R31W; then
    (9) Proceed easterly (upstream) along the Santa Ynez River 
approximately 8 miles, crossing onto the Santa Ynez map, to the river's 
intersection with State Highway 154, T6N/R30W; then
    (10) Proceed north-northwest in a straight line approximately 1.2 
miles to the marked 924-foot elevation point, T6R/R30W; then
    (11) Proceed north-northwest in a straight line 1.2 miles to the 
``Y'' in an unimproved road 0.1 mile south of the 800-foot contour 
line, west of Happy Canyon Road, T6R/R30W; then
    (12) Proceed north-northwest in a straight line for 0.5 mile, 
crossing onto the Los Olivos map, and continuing approximately 2.3 
miles to the third intersection of the line with the 1,000-foot contour 
line northwest of BM 812, T7N/R30W; then
    (13) Proceed westerly along the meandering 1,000-foot contour line 
to the contour line's intersection with an unnamed, unimproved road, an 
unnamed light-duty road, and the northern boundary line of section 23, 
T7N/R31W; then
    (14) Proceed northerly, then westerly, along the unnamed, 
unimproved road to Figueroa Mountain Road, near the marked 895-foot 
elevation, T7N/R31W; then
    (15) Proceed north on Figueroa Mountain Road approximately 400 feet 
to the 920-foot contour line, T7N/R31W; then
    (16) Proceed initially south, then northwesterly along the 
meandering 920-foot contour line, crossing onto the Zaca Creek map, to 
Foxen Canyon Road, T7N/R31W; then
    (17) Proceed southeasterly on Foxen Canyon Road approximately 1.7 
miles, crossing onto the Los Olivos map, returning to the beginning 
point.

    Signed: December 9, 2015.
John J. Manfreda,
Administrator.
    Approved: January 14, 2016.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and Tariff Policy).
[FR Doc. 2016-01155 Filed 1-20-16; 8:45 am]
 BILLING CODE 4810-31-P



                                                                 Federal Register / Vol. 81, No. 13 / Thursday, January 21, 2016 / Rules and Regulations                                           3327

                                                demonstrate that the device performs as                 FOR FURTHER INFORMATION CONTACT:                       purchase. Establishment of an AVA is
                                                intended under anticipated conditions                   Karen A. Thornton, Regulations and                     neither an approval nor an endorsement
                                                of use.                                                 Rulings Division, Alcohol and Tobacco                  by TTB of the wine produced in that
                                                  (4) Professional training must include                Tax and Trade Bureau, 1310 G Street                    area.
                                                the ear impression procedure, correct                   NW., Box 12, Washington, DC 20005;
                                                placement, fitting, monitoring, care, and                                                                      Requirements
                                                                                                        phone 202–453–1039, ext. 175.
                                                maintenance of the device.                              SUPPLEMENTARY INFORMATION:                               Section 4.25(e)(2) of the TTB
                                                  (5) Labeling must include the                                                                                regulations (27 CFR 4.25(e)(2)) outlines
                                                following:                                              Background on Viticultural Areas                       the procedure for proposing an AVA
                                                  (i) A detailed summary of the adverse                 TTB Authority                                          and provides that any interested party
                                                events and effectiveness outcomes from                                                                         may petition TTB to establish a grape-
                                                the clinical performance testing;                          Section 105(e) of the Federal Alcohol               growing region as an AVA. Section 9.12
                                                  (ii) Detailed instructions on how to fit              Administration Act (FAA Act), 27                       of the TTB regulations (27 CFR 9.12)
                                                the device to the patient;                              U.S.C. 205(e), authorizes the Secretary                prescribes standards for petitions for the
                                                  (iii) Instructions for periodic cleaning              of the Treasury to prescribe regulations               establishment or modification of AVAs.
                                                of any reusable components;                             for the labeling of wine, distilled spirits,           Petitions to establish an AVA must
                                                  (iv) Information related to                           and malt beverages. The FAA Act                        include the following:
                                                electromagnetic compatibility; and                      provides that these regulations should,                  • Evidence that the area within the
                                                  (v) Patient labeling that includes:                   among other things, prohibit consumer                  proposed AVA boundary is nationally
                                                  (A) A patient card that identifies if a               deception and the use of misleading                    or locally known by the AVA name
                                                patient has been fitted with any non-                   statements on labels and ensure that                   specified in the petition;
                                                self- removable components of the                       labels provide the consumer with                         • An explanation of the basis for
                                                device and provides relevant                            adequate information as to the identity                defining the boundary of the proposed
                                                information in cases of emergency;                      and quality of the product. The Alcohol                AVA;
                                                  (B) Information on how to correctly                   and Tobacco Tax and Trade Bureau                         • A narrative description of the
                                                use and maintain the device;                            (TTB) administers the FAA Act                          features of the proposed AVA affecting
                                                  (C) The potential risks and benefits                  pursuant to section 1111(d) of the                     viticulture, such as climate, geology,
                                                associated with the use of the device;                  Homeland Security Act of 2002,
                                                and                                                                                                            soils, physical features, and elevation,
                                                                                                        codified at 6 U.S.C. 531(d). The                       that make the proposed AVA distinctive
                                                  (D) Alternative treatments.
                                                                                                        Secretary has delegated various                        and distinguish it from adjacent areas
                                                  Dated: January 13, 2016.                              authorities through Treasury                           outside the proposed AVA boundary;
                                                Leslie Kux,                                             Department Order 120–01, dated                           • The appropriate United States
                                                Associate Commissioner for Policy.                      December 10, 2013 (superseding                         Geological Survey (USGS) map(s)
                                                [FR Doc. 2016–01090 Filed 1–20–16; 8:45 am]             Treasury Department Order 120–01,                      showing the location of the proposed
                                                BILLING CODE 4164–01–P                                  dated January 24, 2003), to the TTB                    AVA, with the boundary of the
                                                                                                        Administrator to perform the functions                 proposed AVA clearly drawn thereon;
                                                                                                        and duties in the administration and                   and
                                                DEPARTMENT OF THE TREASURY                              enforcement of these provisions.                         • A detailed narrative description of
                                                                                                           Part 4 of the TTB regulations (27 CFR               the proposed AVA boundary based on
                                                Alcohol and Tobacco Tax and Trade                       part 4) authorizes TTB to establish                    USGS map markings.
                                                Bureau                                                  definitive viticultural areas and regulate
                                                                                                        the use of their names as appellations of              Los Olivos District Petition
                                                27 CFR Part 9                                           origin on wine labels and in wine                         TTB received a petition from C.
                                                                                                        advertisements. Part 9 of the TTB                      Frederic Brander, owner and winemaker
                                                [Docket No. TTB–2015–0004; T.D. TTB–132;
                                                Ref: Notice No. 148]                                    regulations (27 CFR part 9) sets forth                 of the Brander Vineyard, proposing the
                                                                                                        standards for the preparation and                      establishment of the ‘‘Los Olivos
                                                RIN 1513–AC11                                           submission of petitions for the                        District’’ AVA in Santa Barbara County,
                                                                                                        establishment or modification of                       California. There are 12 bonded
                                                Establishment of the Los Olivos                         American viticultural areas (AVAs) and                 wineries and approximately 47
                                                District Viticultural Area                                                                                     commercially producing vineyards
                                                                                                        lists the approved AVAs.
                                                AGENCY:  Alcohol and Tobacco Tax and                                                                           covering a total of 1,120 acres within the
                                                                                                        Definition                                             proposed AVA. The proposed Los
                                                Trade Bureau, Treasury.
                                                ACTION: Final rule; Treasury decision.                    Section 4.25(e)(1)(i) of the TTB                     Olivos District AVA shares its western
                                                                                                        regulations (27 CFR 4.25(e)(1)(i)) defines             boundary with the eastern boundary of
                                                SUMMARY:    The Alcohol and Tobacco Tax                 a viticultural area for American wine as               the Ballard Canyon AVA (27 CFR 9.230)
                                                and Trade Bureau (TTB) establishes the                  a delimited grape-growing region having                and its eastern boundary with the
                                                approximately 22,820-acre ‘‘Los Olivos                  distinguishing features, as described in               western boundary of the Happy Canyon
                                                District’’ viticultural area in Santa                   part 9 of the regulations, and a name                  of Santa Barbara AVA (27 CR 9.217), but
                                                Barbara County, California. The                         and a delineated boundary, as                          it does not overlap either of these AVAs.
                                                viticultural area is located within the                 established in part 9 of the regulations.              It is located within the Santa Ynez
                                                Santa Ynez Valley viticultural area and                 These designations allow vintners and                  Valley viticultural area and the larger,
                                                the larger, multicounty Central Coast                   consumers to attribute a given quality,                multicounty Central Coast viticultural
jstallworth on DSK7TPTVN1PROD with RULES




                                                viticultural area. TTB designates                       reputation, or other characteristic of a               area.
                                                viticultural areas to allow vintners to                 wine made from grapes grown in an area                    According to the petition, the
                                                better describe the origin of their wines               to the wine’s geographic origin. The                   distinguishing features of the proposed
                                                and to allow consumers to better                        establishment of AVAs allows vintners                  Los Olivos District AVA include its
                                                identify wines they may purchase.                       to describe more accurately the origin of              topography, soils, and climate. The
                                                DATES: This final rule is effective                     their wines to consumers and helps                     proposed AVA is located on a broad
                                                February 22, 2016.                                      consumers to identify wines they may                   alluvial terrace plain of the Santa Ynez


                                           VerDate Sep<11>2014   15:08 Jan 20, 2016   Jkt 238001   PO 00000   Frm 00039   Fmt 4700   Sfmt 4700   E:\FR\FM\21JAR1.SGM   21JAR1


                                                3328             Federal Register / Vol. 81, No. 13 / Thursday, January 21, 2016 / Rules and Regulations

                                                River. The topography of the proposed                   FR 11355), proposing to establish the                  Santa Ynez Valley AVA, which is closer
                                                AVA is relatively uniform, with nearly                  Los Olivos District AVA. In the                        to the Pacific Ocean, and it receives
                                                flat terrain that gently slopes southward               document, TTB summarized the                           more cooling breezes and fog than the
                                                toward the Santa Ynez River. The lack                   evidence from the petition regarding the               eastern portion. The topography of the
                                                of steeply sloped hills reduces the risk                name, boundary, and distinguishing                     Los Olivos District AVA is also more
                                                of erosion and facilitates mechanical                   features for the proposed AVA. The                     uniform than that of the Santa Ynez
                                                tiling and harvesting in the vineyards.                 document also compared the                             Valley AVA, which has mountains and
                                                Additionally, the open terrain allows                   distinguishing features of the proposed                canyons as well as flatter terrain.
                                                vineyards throughout the proposed                       AVA to the surrounding areas. In Notice                Additionally, due to its smaller size, the
                                                AVA to receive uniform amounts of                       No. 148, TTB solicited comments on the                 Los Olivos District AVA is more
                                                sunlight, rainfall, and temperature-                    accuracy of the name, boundary, and                    uniform in its geographical and climatic
                                                moderating fog because there are no                     other required information submitted in                characteristics than the much larger,
                                                significant hills or mountains within the               support of the petition. In addition, TTB              multicounty Central Coast AVA.
                                                proposed AVA to block the rainfall and                  solicited comments on whether the
                                                                                                                                                               Boundary Description
                                                fog or to shade the vineyards. By                       geographic features of the proposed Los
                                                contrast, the regions surrounding the                   Olivos District are so distinguishable                   See the narrative description of the
                                                proposed Los Olivos District all have                   from the established Santa Ynez Valley                 boundary of the AVA in the regulatory
                                                higher elevations and steep, rugged                     AVA and the Central Coast AVA that                     text published at the end of this final
                                                terrain.                                                the proposed AVA should not be part of                 rule.
                                                   Over 95 percent of the soils within the              either established AVA. The comment                    Maps
                                                proposed Los Olivos District AVA are                    period closed on May 4, 2015.
                                                from the Positas–Ballard–Santa Ynez                        In response to Notice No. 148, TTB                    The petitioner provided the required
                                                soil association and are derived from                   received 76 comments, all of which                     maps, and they are listed below in the
                                                alluvium, including Orcutt sand and                     supported the establishment of the Los                 regulatory text.
                                                terrace deposits. The soils are                         Olivos District AVA, with many citing                  Impact on Current Wine Labels
                                                moderately to well drained gravelly fine                to its distinct topography, climate, and
                                                sandy loams and clay loams with low to                  soils. The comments did not raise any                     Part 4 of the TTB regulations prohibits
                                                moderate fertility. The soils within the                new issues concerning the proposed                     any label reference on a wine that
                                                proposed AVA drain quickly enough to                    AVA. TTB received no comments                          indicates or implies an origin other than
                                                reduce the risk of root disease but do                  opposing the establishment of the Los                  the wine’s true place of origin. For a
                                                not drain so excessively as to require                  Olivos District AVA. TTB also did not                  wine to be labeled with an AVA name
                                                frequent irrigation. Soil nutrient levels               receive any comments in response to its                or with a brand name that includes an
                                                within the proposed AVA are adequate                    question of whether the proposed Los                   AVA name, at least 85 percent of the
                                                to produce healthy vines and fruit                      Olivos District AVA is so                              wine must be derived from grapes
                                                without promoting excessive growth. By                  distinguishable from the established                   grown within the area represented by
                                                contrast, the majority of soils in the                  Santa Ynez Valley AVA or the                           that name, and the wine must meet the
                                                surrounding regions are not from the                    established Central Coast AVA that the                 other conditions listed in 27 CFR
                                                Positas–Ballard–Santa Ynez soil                         proposed AVA should not be part of                     4.25(e)(3). If the wine is not eligible for
                                                association and are generally less fertile              either established AVA.                                labeling with an AVA name and that
                                                and drain faster.                                                                                              name appears in the brand name, then
                                                   Within the Central Coast AVA, where                  TTB Determination                                      the label is not in compliance and the
                                                the proposed Los Olivos District AVA is                    After careful review of the petition                bottler must change the brand name and
                                                located, temperatures are affected by                   and the comment received in response                   obtain approval of a new label.
                                                cooling marine fog. However, the                        to Notice No. 148, TTB finds that the                  Similarly, if the AVA name appears in
                                                proposed Los Olivos District AVA is                     evidence provided by the petitioner                    another reference on the label in a
                                                located about 30 miles inland from the                  supports the establishment of the Los                  misleading manner, the bottler would
                                                Pacific Ocean, so much of the marine                    Olivos District AVA. Accordingly,                      have to obtain approval of a new label.
                                                fog has diminished by the time it                       under the authority of the FAA Act,                    Different rules apply if a wine has a
                                                reaches the proposed AVA in the late                    section 1111(d) of the Homeland                        brand name containing an AVA name
                                                afternoon. The thin fog within the                      Security Act of 2002, and part 4 of the                that was used as a brand name on a
                                                proposed AVA allows the daytime                         TTB regulations, TTB establishes the                   label approved before July 7, 1986. See
                                                temperatures to rise higher and the                     ‘‘Los Olivos District’’ AVA in Santa                   27 CFR 4.39(i)(2) for details.
                                                nighttime temperatures to drop lower                    Barbara County, California, effective 30                  With the establishment of this AVA,
                                                than in the regions farther to the west,                days from the publication date of this                 its name, ‘‘Los Olivos District,’’ is
                                                where heavy fog is present throughout                   document.                                              recognized as a name of viticultural
                                                the day. The region to the east receives                   TTB has also determined that the Los                significance under § 4.39(i)(3) of the
                                                even less fog than the proposed AVA, so                 Olivos District AVA will remain part of                TTB regulations (27 CFR 4.39(i)(3)). The
                                                daytime temperatures rise higher and                    both the established Santa Ynez Valley                 text of the regulation clarifies this point.
                                                nighttime temperatures drop lower. The                  AVA and the established Central Coast                  Consequently, wine bottlers using the
                                                warm daytime temperatures within the                    AVA. As discussed in Notice No. 148,                   name ‘‘Los Olivos District’’ in a brand
                                                proposed AVA encourage fruit                            the Los Olivos District AVA receives                   name, including a trademark, or in
                                                maturation and sugar production, and                    some of the marine breezes and fog that                another label reference as to the origin
jstallworth on DSK7TPTVN1PROD with RULES




                                                the cool nighttime temperatures                         are the primary characteristics of both                of the wine, will have to ensure that the
                                                minimize acid loss.                                     the Santa Ynez Valley AVA and the                      product is eligible to use the AVA name
                                                                                                        Central Coast AVA. However, due to its                 as an appellation of origin. In Notice No.
                                                Notice of Proposed Rulemaking and                       central location within the Santa Ynez                 148, TTB proposed to recognize ‘‘Los
                                                Comments Received                                       Valley AVA, the Los Olivos District                    Olivos,’’ standing alone, as a term of
                                                  TTB published Notice No. 148 in the                   AVA receives less marine air and heavy                 viticultural significance. However TTB
                                                Federal Register on March 3, 2015 (80                   fog than the western portion of the                    is not designating ‘‘Los Olivos,’’


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                                                                 Federal Register / Vol. 81, No. 13 / Thursday, January 21, 2016 / Rules and Regulations                                                3329

                                                standing alone, as a term of viticultural               § 9.253    Los Olivos District.                        intersection with the Santa Ynez River,
                                                significance in this final rule. We make                   (a) Name. The name of the viticultural              T6N/R31W; then
                                                this change in light of new information                 area described in this section is ‘‘Los                   (9) Proceed easterly (upstream) along
                                                concerning the current use of ‘‘Los                     Olivos District’’. For purposes of part 4              the Santa Ynez River approximately 8
                                                Olivos’’ on wine labels.                                of this chapter, ‘‘Los Olivos District’’ is            miles, crossing onto the Santa Ynez
                                                   The approval of the Los Olivos                       a term of viticultural significance.
                                                District AVA does not affect any                                                                               map, to the river’s intersection with
                                                                                                           (b) Approved maps. The four United
                                                existing AVA, and this approval does                                                                           State Highway 154, T6N/R30W; then
                                                                                                        States Geological Survey (USGS)
                                                not affect any bottlers using ‘‘Central                 1:24,000 scale topographic maps used to                   (10) Proceed north-northwest in a
                                                Coast’’ or ‘‘Santa Ynez Valley’’ as an                  determine the boundary of the Los                      straight line approximately 1.2 miles to
                                                appellation of origin or in a brand name                Olivos District viticultural area are                  the marked 924-foot elevation point,
                                                for wines made from grapes grown                        titled:                                                T6R/R30W; then
                                                within the Central Coast or Santa Ynez                     (1) Los Olivos, CA, 1995;                              (11) Proceed north-northwest in a
                                                Valley AVAs. The establishment of the                      (2) Zaca Creek, Calif., 1959;
                                                                                                                                                               straight line 1.2 miles to the ‘‘Y’’ in an
                                                Los Olivos District AVA allows vintners                    (3) Solvang, CA, 1995; and
                                                to use ‘‘Los Olivos District,’’ ‘‘Santa                    (4) Santa Ynez, CA, 1995.                           unimproved road 0.1 mile south of the
                                                Ynez Valley,’’ and ‘‘Central Coast’’ as                    (c) Boundary. The Los Olivos District               800-foot contour line, west of Happy
                                                appellations of origin for wines made                   viticultural area is located in Santa                  Canyon Road, T6R/R30W; then
                                                from grapes grown within the Los                        Barbara County, California. The                           (12) Proceed north-northwest in a
                                                Olivos District AVA, if the wines meet                  boundary of the Los Olivos District                    straight line for 0.5 mile, crossing onto
                                                the eligibility requirements for the                    viticultural area is as described below:               the Los Olivos map, and continuing
                                                appellation.                                               (1) The beginning point is on the Los               approximately 2.3 miles to the third
                                                                                                        Olivos map at the intersection of Foxen                intersection of the line with the 1,000-
                                                Regulatory Flexibility Act                              Canyon Road with California State Road                 foot contour line northwest of BM 812,
                                                   TTB certifies that this regulation will              154 (known locally as San Marcos Pass                  T7N/R30W; then
                                                not have a significant economic impact                  Road/Chumash Highway), section 23,
                                                on a substantial number of small                        T7N/R31W.                                                 (13) Proceed westerly along the
                                                entities. The regulation imposes no new                    (2) From the beginning point, proceed               meandering 1,000-foot contour line to
                                                reporting, recordkeeping, or other                      southwesterly in a straight line                       the contour line’s intersection with an
                                                administrative requirement. Any benefit                 approximately 0.3 mile, crossing onto                  unnamed, unimproved road, an
                                                derived from the use of an AVA name                     the Zaca Creek map, to the intersection                unnamed light-duty road, and the
                                                would be the result of a proprietor’s                   of Ballard Canyon Road and an                          northern boundary line of section 23,
                                                efforts and consumer acceptance of                      unnamed, unimproved road known                         T7N/R31W; then
                                                wines from that area. Therefore, no                     locally as Los Olivos Meadows Drive,                      (14) Proceed northerly, then westerly,
                                                regulatory flexibility analysis is                      T7N/R31W; then                                         along the unnamed, unimproved road to
                                                required.                                                  (3) Proceed south-southeasterly in a
                                                                                                                                                               Figueroa Mountain Road, near the
                                                Executive Order 12866                                   straight line approximately 1 mile,
                                                                                                                                                               marked 895-foot elevation, T7N/R31W;
                                                                                                        crossing onto the Los Olivos map, to a
                                                  It has been determined that this final                                                                       then
                                                                                                        marked, unnamed structure within a
                                                rule is not a significant regulatory action             circular-shaped 920-foot contour line in                  (15) Proceed north on Figueroa
                                                as defined by Executive Order 12866 of                  the southwest corner of section 26, T7N/               Mountain Road approximately 400 feet
                                                September 30, 1993. Therefore, no                       R31W; then                                             to the 920-foot contour line, T7N/R31W;
                                                regulatory assessment is required.                         (4) Proceed south-southwesterly in a                then
                                                Drafting Information                                    straight line approximately 1.25 miles,                   (16) Proceed initially south, then
                                                                                                        crossing onto the Zaca Creek map, to the               northwesterly along the meandering
                                                  Karen A. Thornton of the Regulations                  point marked by the ‘‘Ball’’ 801-foot
                                                and Rulings Division drafted this final                                                                        920-foot contour line, crossing onto the
                                                                                                        elevation control point, T6N/R31W;
                                                rule.                                                                                                          Zaca Creek map, to Foxen Canyon Road,
                                                                                                        then
                                                                                                           (5) Proceed south-southwesterly in a                T7N/R31W; then
                                                List of Subjects in 27 CFR Part 9
                                                                                                        straight line approximately 1.45 miles,                   (17) Proceed southeasterly on Foxen
                                                  Wine.
                                                                                                        crossing onto the Solvang map, to a                    Canyon Road approximately 1.7 miles,
                                                The Regulatory Amendment                                marked, unnamed 775-foot peak, T6N/                    crossing onto the Los Olivos map,
                                                                                                        R31W; then                                             returning to the beginning point.
                                                   For the reasons discussed in the                        (6) Proceed south-southwesterly in a
                                                preamble, TTB amends title 27, chapter                                                                           Signed: December 9, 2015.
                                                                                                        straight line approximately 0.55 mile to
                                                I, part 9, Code of Federal Regulations, as              a marked communication tower located                   John J. Manfreda,
                                                follows:                                                within the 760-foot contour line, T6N/                 Administrator.
                                                PART 9—AMERICAN VITICULTURAL                            R31W; then                                               Approved: January 14, 2016.
                                                AREAS                                                      (7) Proceed south-southeasterly in a                Timothy E. Skud,
                                                                                                        straight line approximately 0.6 mile to                Deputy Assistant Secretary (Tax, Trade, and
                                                ■ 1. The authority citation for part 9                  the intersection of Chalk Hill Road with               Tariff Policy).
                                                continues to read as follows:                           an unnamed creek descending from
jstallworth on DSK7TPTVN1PROD with RULES




                                                                                                                                                               [FR Doc. 2016–01155 Filed 1–20–16; 8:45 am]
                                                    Authority: 27 U.S.C. 205.
                                                                                                        Adobe Canyon, northwest of the
                                                                                                                                                               BILLING CODE 4810–31–P
                                                                                                        unnamed road known locally as
                                                Subpart C—Approved American                             Fredensborg Canyon Road, T6N/R31W;
                                                Viticultural Areas                                      then
                                                                                                           (8) Proceed southwesterly
                                                ■ 2. Add § 9.253 to subpart C to read as                (downstream) along the creek
                                                follows:                                                approximately 1 mile to the creek’s


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Document Created: 2018-02-02 12:33:45
Document Modified: 2018-02-02 12:33:45
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionRules and Regulations
ActionFinal rule; Treasury decision.
DatesThis final rule is effective February 22, 2016.
ContactKaren A. Thornton, Regulations and Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street NW., Box 12, Washington, DC 20005; phone 202-453-1039, ext. 175.
FR Citation81 FR 3327 
RIN Number1513-AC11

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