83_FR_64514 83 FR 64274 - Expansion of the Arroyo Seco Viticultural Area

83 FR 64274 - Expansion of the Arroyo Seco Viticultural Area

DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade Bureau

Federal Register Volume 83, Issue 240 (December 14, 2018)

Page Range64274-64276
FR Document2018-27014

The Alcohol and Tobacco Tax and Trade Bureau (TTB) is expanding the approximately 18,240-acre ``Arroyo Seco'' viticultural area in Monterey County, California, by approximately 90 acres. The established Arroyo Seco viticultural area and the expansion area both lie within the established Monterey viticultural area and the larger, multi-county 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 83 Issue 240 (Friday, December 14, 2018)
[Federal Register Volume 83, Number 240 (Friday, December 14, 2018)]
[Rules and Regulations]
[Pages 64274-64276]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2018-27014]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 9

[Docket No. TTB-2018-0003; T.D. TTB-153; Ref: Notice No. 172]
RIN 1513-AC36


Expansion of the Arroyo Seco 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) is 
expanding the approximately 18,240-acre ``Arroyo Seco'' viticultural 
area in Monterey County, California, by approximately 90 acres. The 
established Arroyo Seco viticultural area and the expansion area both 
lie within the established Monterey viticultural area and the larger, 
multi-county 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 January 14, 2019.

FOR FURTHER INFORMATION CONTACT: Christopher Forster-Smith, Alcohol and 
Tobacco Tax and Trade Bureau, Regulations and Rulings Division, 1310 G 
Street NW, Box 12, Washington, DC 20005; phone 202-453-1039, ext. 150.

SUPPLEMENTARY INFORMATION: 

[[Page 64275]]

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 Order 120-01, dated January 24, 2003), 
to the TTB Administrator to perform the functions and duties in the 
administration and enforcement of this law.
    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. Petitioners may use the same process to request changes 
involving established AVAs. Section 9.12 of the TTB regulations (27 CFR 
9.12) prescribes standards for petitions for modifying established 
AVAs. Petitions to expand an established AVA must include the 
following:
     Evidence that the area within the proposed expansion area 
boundary is nationally or locally known by the name of the established 
AVA;
     An explanation of the basis for defining the boundary of 
the proposed expansion area;
     A narrative description of the features of the proposed 
expansion area that affect viticulture, such as climate, geology, 
soils, physical features, and elevation, that make the proposed 
expansion area similar to the established AVA and distinguish it from 
adjacent areas outside the established AVA boundary;
     The appropriate United States Geological Survey (USGS) 
map(s) showing the location of the proposed expansion area, with the 
boundary of the proposed expansion area clearly drawn thereon; and
     A detailed narrative description of the proposed expansion 
area boundary based on USGS map markings.

Petition To Expand the Arroyo Seco AVA

    TTB received a petition from Ann Hougham, owner of the Mesa del Sol 
Vineyards, proposing to expand the established ``Arroyo Seco'' AVA. The 
Arroyo Seco AVA (27 CFR 9.59) was established by T.D. ATF-131, which 
was published in the Federal Register on April 15, 1983 (48 FR 16245). 
The Arroyo Seco AVA covers approximately 18,240 acres in Monterey 
County, California. The proposed expansion area and the established AVA 
are both located within the Monterey AVA (27 CFR 9.98) and the larger, 
multi-county Central Coast AVA (27 CFR 9.75).
    The proposed expansion area contains approximately 90 acres and is 
adjacent to the far southwestern corner of the established Arroyo Seco 
AVA. The proposed expansion area is located on an upland terrace on the 
northern bank of a creek known as the Arroyo Seco, which is Spanish for 
``dry creek.'' There is one vineyard covering approximately 14 acres 
within the proposed expansion area. The petition included a copy of an 
email from the Arroyo Seco Winegrowers, stating that the proposed 
expansion was shared with its members and received no objections. 
Unless otherwise noted, all information and data pertaining to the 
proposed expansion area contained in this document come from the 
petition and its supporting exhibits.
    According to the petition, the soils and topography of the proposed 
expansion area are similar to those of the established Arroyo Seco AVA. 
The soils of the proposed expansion area and the established AVA are 
gravelly and fine sandy loams with low lime and salt content and pH 
levels between 5.1 and 8.4. The proposed expansion area contains soils 
primarily from the Lockwood, Elder, and Mocho series, which are all 
principal soil series within the established Arroyo Seco AVA. Finally, 
the proposed expansion area and the established AVA are both regions of 
terraces and alluvial fans with elevations from approximately 600 to 
700 feet, and slope angles between 0 and 9 percent.
    Although the proposed expansion area is more similar to the Arroyo 
Seco AVA than the surrounding regions, the proposed expansion area 
still shares some of the features of the surrounding Monterey and 
Central Coast AVAs. For example, the proposed Arroyo Seco AVA expansion 
area has moderate elevations and soils with lime, salt, and pH levels 
similar to the Monterey AVA and shares the marine climate influence of 
the larger Central Coast AVA due to its proximity to the Pacific Ocean. 
However, the soils of the proposed expansion area have medium-to-high 
levels of organic matter, compared to the very low levels of organic 
matter that characterize the Monterey AVA. Additionally, due to its 
location east of the Santa Lucas Mountains, the proposed expansion area 
is not as exposed to the marine air and fog as the more western regions 
of the Central Coast AVA that are closer to the ocean. Finally, because 
of its much smaller size, the topographical features of the proposed 
expansion area are more uniform than the diverse features of the large 
multicounty Central Coast AVA, and are more similar to the 
topographical features of the Arroyo Seco AVA, which is located on the 
same sloping bench lands and terraces along the Arroyo Seco as the 
proposed expansion area.

Notice of Proposed Rulemaking and Comments Received

    TTB published Notice No. 172 in the Federal Register on Friday, 
April 6, 2018 (83 FR 14791), proposing to expand the Arroyo Seco AVA. 
In the notice, TTB summarized the evidence from the petition regarding 
the name,

[[Page 64276]]

boundary, and distinguishing features for the proposed expansion area. 
For a detailed description of the evidence relating to the name, 
boundary, and distinguishing features of the proposed expansion area, 
and for a comparison of the distinguishing features of the proposed 
expansion area to the surrounding areas and to the established Arroyo 
Seco AVA, see Notice No. 172.
    In Notice No. 172, TTB solicited comments on the accuracy of the 
name, boundary, climatic, and other required information submitted in 
support of the petition. The comment period closed on June 5, 2018.
    TTB received no comments in response to Notice No. 172.

TTB Determination

    After careful review of the petition, TTB finds that the evidence 
provided by the petitioner sufficiently demonstrates that although the 
proposed expansion area shares some of the broader characteristics of 
the larger Monterey and Central Coast AVAs, it is also similar to the 
established Arroyo Seco AVA and should also be recognized as part of 
that 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 expands the 18,240 acre ``Arroyo Seco'' AVA to include 
the approximately 90-acre expansion area as described in Notice No. 
172, effective 30 days from the publication date of this document.

Boundary Description

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

Maps

    The petitioner provided the required maps, and they are listed in 
the regulatory text of 27 CFR 9.59.

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 Sec.  
4.25(e)(3) of the TTB regulations (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 Sec.  4.39(i)(2) of the TTB regulations (27 CFR 4.39(i)(2)) for 
details.
    The expansion of the Arroyo Seco AVA will not affect any other 
existing AVA, and bottlers using ``Arroyo Seco,'' ``Monterey,'' or 
``Central Coast'' as an appellation of origin or in a brand name for 
wines made from grapes within the ``Arroyo Seco,'' ``Monterey,'' or 
``Central Coast'' AVAs will not be affected by this expansion of the 
Arroyo Seco AVA. The expansion of the Arroyo Seco AVA will allow 
vintners to use ``Arroyo Seco,'' ``Monterey,'' or ``Central Coast'' as 
an appellation of origin for wines made primarily from grapes grown 
within the expansion area 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 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

    Christopher Forster-Smith 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. Section 9.59 is amended by revising paragraphs (c) introductory text 
and (c)(1), redesignating paragraphs (c)(2) through (c)(21) as 
paragraphs (c)(3) through (c)(22), and adding new paragraph (c)(2) to 
read as follows:


Sec.  9.59   Arroyo Seco.

* * * * *
    (c) Boundaries. The Arroyo Seco viticultural area is located in 
Monterey County, California. The beginning point is found on the 
``Sycamore Flat'' U.S.G.S. map at the intersection of Jamesburg Road 
(known locally as Carmel Valley Road) and Arroyo Seco Road, near the 
intersection of sections 21, 22, 28, and 27, T.19 S., R. 5 E. From the 
beginning point, proceed southwesterly along Arroyo Seco Road to its 
intersection with Piney Creek.
    (1) Then southeasterly along Piney Creek to its confluence with the 
Arroyo Seco in section 27, T. 19 S., R. 5 E.
    (2) Then northerly along the Arroyo Seco to its intersection with 
the southern boundary of section 22, T. 19 S., R 5 E.
* * * * *

    Signed: September 19, 2018.
John J. Manfreda,
Administrator.
    Approved: December 4, 2018.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and Tariff Policy).
[FR Doc. 2018-27014 Filed 12-13-18; 8:45 am]
 BILLING CODE P



                                           64274            Federal Register / Vol. 83, No. 240 / Friday, December 14, 2018 / Rules and Regulations

                                           Leah Wentz, who have established a                      that was used as a brand name on a                    § 9.48   Monticello.
                                           vineyard in the proposed expansion                      label approved before July 7, 1986. See               *     *     *     *     *
                                           area, and who supported the proposed                    § 4.39(i)(2) of the TTB regulations (27                 (c) * * *
                                           expansion of the Monticello AVA. They                   CFR 4.39(i)(2)) for details.                            (16) Then continuing southwest along
                                           claim that they selected their vineyard                   The expansion of the Monticello AVA                 the county line to its intersection with
                                           site in Fluvanna County based on the                    will not affect any other existing AVA,               the Rivanna River;
                                           various viticultural attributes of the                  and bottlers using ‘‘Monticello’’ as an                 (17) Then southeast along the Rivanna
                                           area, especially including its climate                  appellation of origin or in a brand name              River to its confluence with the James
                                           and soils, which they said were                         for wines made from grapes within the                 River, near the Fluvanna-Goochland
                                           accurately described in the initial                     ‘‘Monticello’’ AVA will not be affected               County line;
                                           petition. TTB did not receive any                       by this expansion of the Monticello                     (18) Then southwest, then northwest
                                           comments objecting to the proposed                      AVA. The expansion of the Monticello                  along the James River to its intersection
                                           AVA expansion.                                          AVA will allow vintners to use                        with the Albemarle County line;
                                                                                                   ‘‘Monticello’’ as an appellation of origin            *     *     *     *     *
                                           TTB Determination
                                                                                                   for wines made primarily from grapes
                                             After careful review of the petition,                                                                         Signed: September 5, 2018.
                                                                                                   grown within the expansion area if the
                                           TTB finds that the evidence provided by                 wines meet the eligibility requirements               John J. Manfreda,
                                           the petitioner sufficiently demonstrates                for the appellation.                                  Administrator.
                                           that the proposed expansion area shares                                                                         Approved: December 4, 2018.
                                           the characteristics of the established                  Regulatory Flexibility Act
                                                                                                                                                         Timothy E. Skud,
                                           Monticello AVA and should also be                          TTB certifies that this regulation will            Deputy Assistant Secretary (Tax, Trade, and
                                           recognized as part of that AVA.                         not have a significant economic impact                Tariff Policy).
                                           Accordingly, under the authority of the                 on a substantial number of small                      [FR Doc. 2018–27125 Filed 12–13–18; 8:45 am]
                                           FAA Act, section 1111(d) of the                         entities. The regulation imposes no new               BILLING CODE 4810–31–P
                                           Homeland Security Act of 2002, and                      reporting, recordkeeping, or other
                                           parts 4 and 9 of the TTB regulations,                   administrative requirement. Any benefit
                                           TTB expands the 1,320 square mile                       derived from the use of an AVA name                   DEPARTMENT OF THE TREASURY
                                           ‘‘Monticello’’ AVA to include the                       would be the result of a proprietor’s
                                           approximately 166 square mile                           efforts and consumer acceptance of                    Alcohol and Tobacco Tax and Trade
                                           expansion area as described in Notice                   wines from that area. Therefore, no                   Bureau
                                           No. 173, effective 30 days from the                     regulatory flexibility analysis is
                                           publication date of this document.                      required.                                             27 CFR Part 9
                                           Boundary Description                                    Executive Order 12866                                 [Docket No. TTB–2018–0003; T.D. TTB–153;
                                             See the narrative description of the                     It has been determined that this rule              Ref: Notice No. 172]
                                           boundary of the AVA expansion in the                    is not a significant regulatory action as
                                           regulatory text published at the end of                                                                       RIN 1513–AC36
                                                                                                   defined by Executive Order 12866 of
                                           this final rule.                                        September 30, 1993. Therefore, no                     Expansion of the Arroyo Seco
                                           Maps                                                    regulatory assessment is required.                    Viticultural Area
                                             The petitioner provided the required                  Drafting Information                                  AGENCY:  Alcohol and Tobacco Tax and
                                           maps, and they are codified in the                        Trevar D. Kolodny of the Regulations                Trade Bureau, Treasury.
                                           regulatory text.                                        and Rulings Division drafted this final               ACTION: Final rule; Treasury decision.
                                           Impact on Current Wine Labels                           rule.
                                                                                                                                                         SUMMARY:   The Alcohol and Tobacco Tax
                                              Part 4 of the TTB regulations prohibits              List of Subjects in 27 CFR Part 9                     and Trade Bureau (TTB) is expanding
                                           any label reference on a wine that                                                                            the approximately 18,240-acre ‘‘Arroyo
                                                                                                       Wine.
                                           indicates or implies an origin other than                                                                     Seco’’ viticultural area in Monterey
                                           the wine’s true place of origin. For a                  The Regulatory Amendment                              County, California, by approximately 90
                                           wine to be labeled with an AVA name                                                                           acres. The established Arroyo Seco
                                                                                                      For the reasons discussed in the
                                           or with a brand name that includes an                                                                         viticultural area and the expansion area
                                                                                                   preamble, TTB amends title 27, chapter
                                           AVA name, at least 85 percent of the                                                                          both lie within the established Monterey
                                                                                                   I, part 9, Code of Federal Regulations, as
                                           wine must be derived from grapes                                                                              viticultural area and the larger, multi-
                                                                                                   follows:
                                           grown within the area represented by                                                                          county Central Coast viticultural area.
                                           that name, and the wine must meet the                   PART 9—AMERICAN VITICULTURAL                          TTB designates viticultural areas to
                                           other conditions listed in § 4.25(e)(3) of              AREAS                                                 allow vintners to better describe the
                                           the TTB regulations (27 CFR 4.25(e)(3)).                                                                      origin of their wines and to allow
                                           If the wine is not eligible for labeling                ■ 1. The authority citation for part 9                consumers to better identify wines they
                                           with an AVA name and that name                          continues to read as follows:                         may purchase.
                                           appears in the brand name, then the                         Authority: 27 U.S.C. 205.                         DATES: This final rule is effective
                                           label is not in compliance, and the
                                           bottler must change the brand name and                                                                        January 14, 2019.
                                                                                                   Subpart C—Approved American
                                           obtain approval of a new label.                                                                               FOR FURTHER INFORMATION CONTACT:
amozie on DSK3GDR082PROD with RULES




                                                                                                   Viticultural Areas
                                           Similarly, if the AVA name appears in                                                                         Christopher Forster-Smith, Alcohol and
                                           another reference on the label in a                     ■ 2. Section 9.48 is amended by revising              Tobacco Tax and Trade Bureau,
                                           misleading manner, the bottler would                    paragraph (c)(16), redesignating                      Regulations and Rulings Division, 1310
                                           have to obtain approval of a new label.                 paragraph (c)(17) as (c)(19), and adding              G Street NW, Box 12, Washington, DC
                                           Different rules apply if a wine has a                   new paragraph (c)(17) and paragraph                   20005; phone 202–453–1039, ext. 150.
                                           brand name containing an AVA name                       (c)(18) to read as follows:                           SUPPLEMENTARY INFORMATION:



                                      VerDate Sep<11>2014   16:07 Dec 13, 2018   Jkt 247001   PO 00000   Frm 00052   Fmt 4700   Sfmt 4700   E:\FR\FM\14DER1.SGM   14DER1


                                                            Federal Register / Vol. 83, No. 240 / Friday, December 14, 2018 / Rules and Regulations                                        64275

                                           Background on Viticultural Areas                        the procedure for proposing an AVA                    and received no objections. Unless
                                                                                                   and provides that any interested party                otherwise noted, all information and
                                           TTB Authority
                                                                                                   may petition TTB to establish a grape-                data pertaining to the proposed
                                              Section 105(e) of the Federal Alcohol                growing region as an AVA. Petitioners                 expansion area contained in this
                                           Administration Act (FAA Act), 27                        may use the same process to request                   document come from the petition and
                                           U.S.C. 205(e), authorizes the Secretary                 changes involving established AVAs.                   its supporting exhibits.
                                           of the Treasury to prescribe regulations                Section 9.12 of the TTB regulations (27                  According to the petition, the soils
                                           for the labeling of wine, distilled spirits,            CFR 9.12) prescribes standards for                    and topography of the proposed
                                           and malt beverages. The FAA Act                         petitions for modifying established                   expansion area are similar to those of
                                           provides that these regulations should,                 AVAs. Petitions to expand an                          the established Arroyo Seco AVA. The
                                           among other things, prohibit consumer                   established AVA must include the                      soils of the proposed expansion area
                                           deception and the use of misleading                     following:                                            and the established AVA are gravelly
                                           statements on labels and ensure that                      • Evidence that the area within the                 and fine sandy loams with low lime and
                                           labels provide the consumer with                        proposed expansion area boundary is                   salt content and pH levels between 5.1
                                           adequate information as to the identity                 nationally or locally known by the name               and 8.4. The proposed expansion area
                                           and quality of the product. The Alcohol                 of the established AVA;                               contains soils primarily from the
                                           and Tobacco Tax and Trade Bureau                          • An explanation of the basis for                   Lockwood, Elder, and Mocho series,
                                           (TTB) administers the FAA Act                           defining the boundary of the proposed                 which are all principal soil series within
                                           pursuant to section 1111(d) of the                      expansion area;                                       the established Arroyo Seco AVA.
                                           Homeland Security Act of 2002,                            • A narrative description of the                    Finally, the proposed expansion area
                                           codified at 6 U.S.C. 531(d). The                        features of the proposed expansion area               and the established AVA are both
                                           Secretary has delegated various                         that affect viticulture, such as climate,             regions of terraces and alluvial fans with
                                           authorities through Treasury                            geology, soils, physical features, and                elevations from approximately 600 to
                                           Department Order 120–01, dated                          elevation, that make the proposed                     700 feet, and slope angles between 0
                                           December 10, 2013 (superseding                          expansion area similar to the                         and 9 percent.
                                           Treasury Order 120–01, dated January                    established AVA and distinguish it from                  Although the proposed expansion
                                           24, 2003), to the TTB Administrator to                  adjacent areas outside the established                area is more similar to the Arroyo Seco
                                           perform the functions and duties in the                 AVA boundary;                                         AVA than the surrounding regions, the
                                           administration and enforcement of this                    • The appropriate United States                     proposed expansion area still shares
                                           law.                                                    Geological Survey (USGS) map(s)                       some of the features of the surrounding
                                              Part 4 of the TTB regulations (27 CFR                showing the location of the proposed                  Monterey and Central Coast AVAs. For
                                           part 4) authorizes TTB to establish                     expansion area, with the boundary of                  example, the proposed Arroyo Seco
                                           definitive viticultural areas and regulate              the proposed expansion area clearly                   AVA expansion area has moderate
                                           the use of their names as appellations of               drawn thereon; and                                    elevations and soils with lime, salt, and
                                           origin on wine labels and in wine                         • A detailed narrative description of               pH levels similar to the Monterey AVA
                                           advertisements. Part 9 of the TTB                       the proposed expansion area boundary                  and shares the marine climate influence
                                           regulations (27 CFR part 9) sets forth                  based on USGS map markings.                           of the larger Central Coast AVA due to
                                           standards for the preparation and                                                                             its proximity to the Pacific Ocean.
                                                                                                   Petition To Expand the Arroyo Seco
                                           submission of petitions for the                                                                               However, the soils of the proposed
                                                                                                   AVA
                                           establishment or modification of                                                                              expansion area have medium-to-high
                                           American viticultural areas (AVAs) and                     TTB received a petition from Ann                   levels of organic matter, compared to
                                           lists the approved AVAs.                                Hougham, owner of the Mesa del Sol                    the very low levels of organic matter
                                                                                                   Vineyards, proposing to expand the                    that characterize the Monterey AVA.
                                           Definition                                              established ‘‘Arroyo Seco’’ AVA. The                  Additionally, due to its location east of
                                             Section 4.25(e)(1)(i) of the TTB                      Arroyo Seco AVA (27 CFR 9.59) was                     the Santa Lucas Mountains, the
                                           regulations (27 CFR 4.25(e)(1)(i)) defines              established by T.D. ATF–131, which                    proposed expansion area is not as
                                           a viticultural area for American wine as                was published in the Federal Register                 exposed to the marine air and fog as the
                                           a delimited grape-growing region having                 on April 15, 1983 (48 FR 16245). The                  more western regions of the Central
                                           distinguishing features, as described in                Arroyo Seco AVA covers approximately                  Coast AVA that are closer to the ocean.
                                           part 9 of the regulations, and a name                   18,240 acres in Monterey County,                      Finally, because of its much smaller
                                           and a delineated boundary, as                           California. The proposed expansion area               size, the topographical features of the
                                           established in part 9 of the regulations.               and the established AVA are both                      proposed expansion area are more
                                           These designations allow vintners and                   located within the Monterey AVA (27                   uniform than the diverse features of the
                                           consumers to attribute a given quality,                 CFR 9.98) and the larger, multi-county                large multicounty Central Coast AVA,
                                           reputation, or other characteristic of a                Central Coast AVA (27 CFR 9.75).                      and are more similar to the
                                           wine made from grapes grown in an area                     The proposed expansion area contains               topographical features of the Arroyo
                                           to the wine’s geographic origin. The                    approximately 90 acres and is adjacent                Seco AVA, which is located on the same
                                           establishment of AVAs allows vintners                   to the far southwestern corner of the                 sloping bench lands and terraces along
                                           to describe more accurately the origin of               established Arroyo Seco AVA. The                      the Arroyo Seco as the proposed
                                           their wines to consumers and helps                      proposed expansion area is located on                 expansion area.
                                           consumers to identify wines they may                    an upland terrace on the northern bank
                                                                                                   of a creek known as the Arroyo Seco,                  Notice of Proposed Rulemaking and
                                           purchase. Establishment of an AVA is
                                                                                                   which is Spanish for ‘‘dry creek.’’ There             Comments Received
amozie on DSK3GDR082PROD with RULES




                                           neither an approval nor an endorsement
                                           by TTB of the wine produced in that                     is one vineyard covering approximately                   TTB published Notice No. 172 in the
                                           area.                                                   14 acres within the proposed expansion                Federal Register on Friday, April 6,
                                                                                                   area. The petition included a copy of an              2018 (83 FR 14791), proposing to
                                           Requirements                                            email from the Arroyo Seco                            expand the Arroyo Seco AVA. In the
                                             Section 4.25(e)(2) of the TTB                         Winegrowers, stating that the proposed                notice, TTB summarized the evidence
                                           regulations (27 CFR 4.25(e)(2)) outlines                expansion was shared with its members                 from the petition regarding the name,


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                                           64276            Federal Register / Vol. 83, No. 240 / Friday, December 14, 2018 / Rules and Regulations

                                           boundary, and distinguishing features                   obtain approval of a new label.                           Authority: 27 U.S.C. 205.
                                           for the proposed expansion area. For a                  Similarly, if the AVA name appears in
                                           detailed description of the evidence                    another reference on the label in a                   Subpart C—Approved American
                                           relating to the name, boundary, and                     misleading manner, the bottler would                  Viticultural Areas
                                           distinguishing features of the proposed                 have to obtain approval of a new label.
                                                                                                                                                         ■ 2. Section 9.59 is amended by revising
                                           expansion area, and for a comparison of                 Different rules apply if a wine has a
                                                                                                                                                         paragraphs (c) introductory text and
                                           the distinguishing features of the                      brand name containing an AVA name
                                                                                                                                                         (c)(1), redesignating paragraphs (c)(2)
                                           proposed expansion area to the                          that was used as a brand name on a
                                                                                                                                                         through (c)(21) as paragraphs (c)(3)
                                           surrounding areas and to the established                label approved before July 7, 1986. See
                                                                                                                                                         through (c)(22), and adding new
                                           Arroyo Seco AVA, see Notice No. 172.                    § 4.39(i)(2) of the TTB regulations (27
                                             In Notice No. 172, TTB solicited                                                                            paragraph (c)(2) to read as follows:
                                                                                                   CFR 4.39(i)(2)) for details.
                                           comments on the accuracy of the name,                      The expansion of the Arroyo Seco                   § 9.59   Arroyo Seco.
                                           boundary, climatic, and other required                  AVA will not affect any other existing                *      *     *    *     *
                                           information submitted in support of the                 AVA, and bottlers using ‘‘Arroyo Seco,’’                 (c) Boundaries. The Arroyo Seco
                                           petition. The comment period closed on                  ‘‘Monterey,’’ or ‘‘Central Coast’’ as an              viticultural area is located in Monterey
                                           June 5, 2018.                                           appellation of origin or in a brand name              County, California. The beginning point
                                             TTB received no comments in                           for wines made from grapes within the                 is found on the ‘‘Sycamore Flat’’
                                           response to Notice No. 172.                             ‘‘Arroyo Seco,’’ ‘‘Monterey,’’ or ‘‘Central           U.S.G.S. map at the intersection of
                                           TTB Determination                                       Coast’’ AVAs will not be affected by this             Jamesburg Road (known locally as
                                                                                                   expansion of the Arroyo Seco AVA. The                 Carmel Valley Road) and Arroyo Seco
                                             After careful review of the petition,                 expansion of the Arroyo Seco AVA will
                                           TTB finds that the evidence provided by                                                                       Road, near the intersection of sections
                                                                                                   allow vintners to use ‘‘Arroyo Seco,’’                21, 22, 28, and 27, T.19 S., R. 5 E. From
                                           the petitioner sufficiently demonstrates                ‘‘Monterey,’’ or ‘‘Central Coast’’ as an
                                           that although the proposed expansion                                                                          the beginning point, proceed
                                                                                                   appellation of origin for wines made                  southwesterly along Arroyo Seco Road
                                           area shares some of the broader                         primarily from grapes grown within the
                                           characteristics of the larger Monterey                                                                        to its intersection with Piney Creek.
                                                                                                   expansion area if the wines meet the                     (1) Then southeasterly along Piney
                                           and Central Coast AVAs, it is also                      eligibility requirements for the
                                           similar to the established Arroyo Seco                                                                        Creek to its confluence with the Arroyo
                                                                                                   appellation.                                          Seco in section 27, T. 19 S., R. 5 E.
                                           AVA and should also be recognized as
                                           part of that AVA. Accordingly, under                    Regulatory Flexibility Act                               (2) Then northerly along the Arroyo
                                           the authority of the FAA Act, section                                                                         Seco to its intersection with the
                                                                                                      TTB certifies that this regulation will            southern boundary of section 22, T. 19
                                           1111(d) of the Homeland Security Act of                 not have a significant economic impact
                                           2002, and part 4 of the TTB regulations,                                                                      S., R 5 E.
                                                                                                   on a substantial number of small
                                           TTB expands the 18,240 acre ‘‘Arroyo                    entities. The regulation imposes no new               *      *     *    *     *
                                           Seco’’ AVA to include the                               reporting, recordkeeping, or other                      Signed: September 19, 2018.
                                           approximately 90-acre expansion area as                 administrative requirement. Any benefit               John J. Manfreda,
                                           described in Notice No. 172, effective 30               derived from the use of an AVA name                   Administrator.
                                           days from the publication date of this                  would be the result of a proprietor’s                   Approved: December 4, 2018.
                                           document.                                               efforts and consumer acceptance of                    Timothy E. Skud,
                                           Boundary Description                                    wines from that area. Therefore, no                   Deputy Assistant Secretary (Tax, Trade, and
                                                                                                   regulatory flexibility analysis is                    Tariff Policy).
                                             See the narrative description of the                  required.
                                           boundary of the AVA expansion in the                                                                          [FR Doc. 2018–27014 Filed 12–13–18; 8:45 am]
                                           regulatory text published at the end of                 Executive Order 12866                                 BILLING CODE P
                                           this final rule.                                           It has been determined that this rule
                                           Maps                                                    is not a significant regulatory action as             DEPARTMENT OF THE TREASURY
                                                                                                   defined by Executive Order 12866 of
                                             The petitioner provided the required
                                                                                                   September 30, 1993. Therefore, no                     Alcohol and Tobacco Tax and Trade
                                           maps, and they are listed in the
                                                                                                   regulatory assessment is required.                    Bureau
                                           regulatory text of 27 CFR 9.59.
                                                                                                   Drafting Information
                                           Impact on Current Wine Labels                                                                                 27 CFR Part 9
                                              Part 4 of the TTB regulations prohibits                Christopher Forster-Smith of the
                                                                                                   Regulations and Rulings Division                      [Docket No. TTB–2018–0006; T.D. TTB–155;
                                           any label reference on a wine that                                                                            Ref: Notice No. 175]
                                           indicates or implies an origin other than               drafted this final rule.
                                           the wine’s true place of origin. For a                  List of Subjects in 27 CFR Part 9                     RIN 1513–AC39
                                           wine to be labeled with an AVA name
                                                                                                       Wine.                                             Establishment of the Van Duzer
                                           or with a brand name that includes an
                                                                                                                                                         Corridor Viticultural Area and
                                           AVA name, at least 85 percent of the                    The Regulatory Amendment
                                                                                                                                                         Clarification of the Eola-Amity Hills
                                           wine must be derived from grapes                           For the reasons discussed in the                   Viticultural Area Boundary Description
                                           grown within the area represented by                    preamble, TTB amends title 27, chapter
                                           that name, and the wine must meet the                   I, part 9, Code of Federal Regulations, as            AGENCY:  Alcohol and Tobacco Tax and
                                           other conditions listed in § 4.25(e)(3) of                                                                    Trade Bureau, Treasury.
amozie on DSK3GDR082PROD with RULES




                                                                                                   follows:
                                           the TTB regulations (27 CFR 4.25(e)(3)).                                                                      ACTION: Final rule; Treasury decision.
                                           If the wine is not eligible for labeling                PART 9—AMERICAN VITICULTURAL
                                           with an AVA name and that name                          AREAS                                                 SUMMARY:   The Alcohol and Tobacco Tax
                                           appears in the brand name, then the                                                                           and Trade Bureau (TTB) establishes the
                                           label is not in compliance, and the                     ■ 1. The authority citation for part 9                approximately 59,871-acre ‘‘Van Duzer
                                           bottler must change the brand name and                  continues to read as follows:                         Corridor’’ viticultural area in Polk and


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Document Created: 2018-12-14 03:50:12
Document Modified: 2018-12-14 03:50:12
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 January 14, 2019.
ContactChristopher Forster-Smith, Alcohol and Tobacco Tax and Trade Bureau, Regulations and Rulings Division, 1310 G Street NW, Box 12, Washington, DC 20005; phone 202-453-1039, ext. 150.
FR Citation83 FR 64274 
RIN Number1513-AC36

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