Establishment of the Alisos Canyon Viticultural Area

Published date25 August 2020
Citation85 FR 52271
Record Number2020-16933
SectionRules and Regulations
CourtAlcohol And Tobacco Tax And Trade Bureau
Federal Register, Volume 85 Issue 165 (Tuesday, August 25, 2020)
[Federal Register Volume 85, Number 165 (Tuesday, August 25, 2020)]
                [Rules and Regulations]
                [Pages 52271-52274]
                From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
                [FR Doc No: 2020-16933]
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                DEPARTMENT OF THE TREASURY
                Alcohol and Tobacco Tax and Trade Bureau
                27 CFR Part 9
                [Docket No. TTB-2019-0007; T.D. TTB-1611; Ref: Notice No. 185]
                RIN 1513-AC51
                Establishment of the Alisos Canyon Viticultural Area
                AGENCY: Alcohol and Tobacco Tax and Trade Bureau, Treasury.
                ACTION: Final rule; Treasury decision.
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                SUMMARY: The Alcohol and Tobacco Tax and Trade Bureau (TTB) establishes
                the approximately 5,774-acre ``Alisos Canyon'' viticultural area in
                Santa Barbara County, California. The Alisos Canyon viticultural area
                is located entirely within the existing 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 September 24, 2020.
                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. 2175.
                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 the functions
                and duties in the administration and enforcement of these provisions to
                the TTB Administrator through Treasury Order 120-01, dated December 10,
                2013 (superseding Treasury Order 120-01, dated January 24, 2003).
                 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 to TTB 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
                [[Page 52272]]
                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;
                 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;
                 If the proposed AVA is to be established within, or
                overlapping, an existing AVA, an explanation that both identifies the
                attributes of the proposed AVA that are consistent with the existing
                AVA and explains how the proposed AVA is sufficiently distinct from the
                existing AVA and therefore appropriate for separate recognition; and
                 A detailed narrative description of the proposed AVA
                boundary based on USGS map markings.
                Alisos Canyon Petition
                 TTB received a petition from Wesley D. Hagen, on behalf of local
                vineyard owners and winemakers, proposing the establishment of the
                ``Alisos Canyon'' AVA in Santa Barbara County, California. The proposed
                Alisos Canyon AVA lies entirely within the established Central Coast
                AVA (27 CFR 9.75).
                 Within the 5,774-acre proposed AVA, there are currently 9 producing
                commercial vineyards, which cover a total of approximately 238 acres.
                There is also one winery within the proposed AVA. According to the
                petition, the distinguishing features of the proposed Alisos Canyon AVA
                include its climate and soils. The petition also listed topography and
                geology as distinguishing features. However, based on the petition's
                descriptions, topography and geology appear to be too integral to the
                region's climate and soils, respectively, to be considered separately
                from those features. Therefore, TTB does not consider topography and
                geology to be separate distinguishing features of the proposed AVA.
                 The climate of the proposed Alisos Canyon AVA is affected by cool
                marine air which travels into the proposed AVA via the drainage system
                of San Antonio Creek. The proposed AVA is located approximately 25
                miles from the Pacific Ocean and is situated in a transitional region,
                between the cooler coastal regions and the warmer inland areas. Growing
                degree day accumulations \1\ within the proposed Alisos Canyon AVA are
                higher than those of the regions to the northwest and southwest, which
                are closer to the ocean, and lower than those in the more inland
                regions to the south and east. The region due north of the proposed AVA
                also has higher growing degree day accumulations due to its location
                east of ridges and hills which trap warm air and block cool marine air
                from entering the region. According to the petition, the proposed AVA's
                location is a ``Goldilocks Rhone Zone,'' meaning that temperatures are
                neither too hot nor too cold for growing Rhone wine varietals such as
                Syrah, which is the most common varietal grown in the proposed AVA.
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                 \1\ See Albert J. Winkler et al., General Viticulture (Berkeley:
                University of California Press, 2nd ed. 1974), pages 61-64. In the
                Winkler climate classification system, annual heat accumulation
                during the growing season, measured in annual growing degree days
                (GDDs), defines climatic regions. One GDD accumulates for each
                degree Fahrenheit that a day's mean temperature is above 50 degrees,
                the minimum temperature required for grapevine growth.
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                 Soils within the proposed Alisos Canyon AVA are primarily derived
                from sandstone and shale. The most common soils are the Paso Robles
                Formation and Careaga Sandstone, which comprise 63 percent and 13
                percent of the total soils, respectively. High calcium content from
                shale pebbles increases the thickness of the skins of red varietal wine
                grapes, which in turn increases the color and tannin levels in the
                resulting wine. High sand content provides excellent drainage for
                vineyards, thus reducing the risks from certain pests such as nematodes
                and phylloxera. The low clay content of Careaga Sandstone soils reduces
                the uptake of nutrients and reduces the vigor of the vines, resulting
                in smaller grapes with a higher skin-to-juice ratio than grapes of the
                same varietal grown in different soils with higher clay content.
                 To the north of the proposed AVA, within the Santa Maria Valley,
                the soils have sandier top soils. South of the proposed Alisos Canyon
                AVA, the soils are characterized by Metz fine sandy loam. To the east
                of the proposed AVA, the soils are primarily derived from serpentine
                and chert. To the west of the proposed AVA, the soils are described as
                deep, sandy soils of the Shedd, Chamise, and Point Sal Formation
                series.
                Notice of Proposed Rulemaking and Comments Received
                 TTB published Notice No. 185 in the Federal Register on October 15,
                2019 (84 FR 55082), proposing to establish the Alisos Canyon AVA. In
                the notice, TTB summarized the evidence from the petition regarding the
                name, boundary, and distinguishing features for the proposed AVA. The
                notice also compared the distinguishing features of the proposed AVA to
                the surrounding areas. For a detailed description of the evidence
                relating to the name, boundary, and distinguishing features of the
                proposed AVA, and for a detailed comparison of the distinguishing
                features of the proposed AVA to the surrounding areas, see Notice No.
                185.
                 In Notice No. 185, TTB solicited comments on the accuracy of the
                name, boundary, and other required information submitted in support of
                the petition. In addition, given the proposed Alisos Canyon AVA's
                location within the Central Coast AVA, TTB solicited comments on
                whether the evidence submitted in the petition regarding the
                distinguishing features of the proposed AVA sufficiently differentiates
                it from the established AVA. TTB also requested comments on whether the
                geographic features of the proposed AVA are so distinguishable from the
                established AVA that the proposed AVA should no longer be part of the
                established AVA. The comment period closed December 16, 2019.
                 In response to Notice No. 185, TTB received a total of 18 comments.
                Commenters included the co-authors of the petition, local wine industry
                members, and members of the public who did not state an affiliation.
                All of the comments support the establishment of the proposed Alisos
                Canyon AVA, with most comments being an expression of general support.
                A few comments expressed agreement with the petition's description of
                the proposed AVA's soils and microclimate. None of the comments
                mentioned the proposed AVA's location within the established Central
                Coast AVA.
                TTB Determination
                 After careful review of the petition and the comments received in
                response to Notice No. 185, TTB finds that the evidence provided by the
                petitioner supports the establishment of the Alisos Canyon AVA.
                Accordingly, under the authority of the FAA Act, section 1111(d) of the
                Homeland Security Act of 2002, and parts 4 and 9 of the TTB
                regulations, TTB establishes the ``Alisos Canyon'' AVA in Santa Barbara
                County, California, effective 30 days from the publication date of this
                document.
                 TTB has also determined that the Alisos Canyon AVA will remain part
                of the established Central Coast AVA. As discussed in Notice No. 185,
                the Alisos Canyon AVA shares some broad characteristics with the
                established
                [[Page 52273]]
                AVA. For example, the proposed AVA has a marine-influenced climate that
                moderates growing season temperatures. A marine-influenced climate is
                also the basic viticultural feature of the Central Coast AVA. However,
                due to its smaller size, the Alisos Canyon AVA experiences a much
                smaller range of growing degree day accumulations within its proposed
                boundaries than the diverse, multicounty Central Coast AVA. It also has
                fewer soil types than the Central Coast AVA.
                Boundary Description
                 See the narrative description of the boundary of the Alisos Canyon
                AVA in the regulatory text published at the end of this final rule.
                Maps
                 The petitioners provided the required maps, and they are listed
                below in the regulatory text. The Alisos Canyon AVA boundary may also
                be viewed on the AVA Map Explorer on the TTB website, at https://www.ttb.gov/wine/ava-map-explorer.
                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 the Alisos Canyon AVA, its name, ``Alisos
                Canyon,'' will be 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 regulations clarifies this point. Consequently, wine
                bottlers using the name ``Alisos Canyon'' 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.
                 The establishment of the Alisos Canyon AVA will not affect the
                existing Central Coast AVA, and any bottlers using ``Central Coast'' as
                an appellation of origin or in a brand name for wines made from grapes
                grown within the Central Coast AVA will not be affected by the
                establishment of this new AVA. The establishment of the Alisos Canyon
                AVA will allow vintners to use ``Alisos Canyon'' and ``Central Coast''
                as appellations of origin for wines made primarily from grapes grown
                within the Alisos Canyon 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. Subpart C is amended by adding Sec. 9.270 to read as follows:
                Sec. 9.270 Alisos Canyon.
                 (a) Name. The name of the viticultural area described in this
                section is ``Alisos Canyon''. For purposes of part 4 of this chapter,
                ``Alisos Canyon'' is a term of viticultural significance.
                 (b) Approved maps. The two United States Geological Survey (USGS)
                1:24,000 scale topographic maps used to determine the boundary of the
                Alisos Canyon viticultural area are titled:
                 (1) Foxen Canyon, CA, 1995; and
                 (2) Zaca Creek, Calif., 1959.
                 (c) Boundary. The Alisos Canyon viticultural area is located in
                Santa Barbara County, California. The boundary of the Alisos Canyon
                viticultural area is as described below:
                 (1) The beginning point is on the Foxen Canyon map at an unnamed
                hilltop with a marked elevation of 1,137 feet, located west of the
                Ca[ntilde]ada de los Coches in the La Laguna Grant. From the beginning
                point, proceed east in a straight line for 3.71 miles to the
                intersection of two unnamed, unimproved roads north of Rancho San Juan;
                then
                 (2) Proceed east-southeast in a straight line for approximately 1.2
                miles to an unnamed hilltop with a marked elevation of 1,424 feet in
                the La Laguna Grant; then
                 (3) Proceed southwest in a straight line for approximately 1.7
                miles, crossing onto the Zaca Creek map, to a point designated ``Oil,''
                adjacent to the north fork of San Antonio Creek and the intersection of
                three unnamed light-duty roads in the Ca[ntilde]ada del Comasa, La
                Laguna Grant; then
                 (4) Proceed west-southwest in a straight line for approximately
                1.56 miles to the intersection of the north fork of San Antonio Creek
                and the 800-foot elevation contour in the Ca[ntilde]ada del Comasa, La
                Laguna Grant; then
                 (5) Proceed west in a straight line 1.95 miles to an unnamed
                rectangular structure northeast of the terminus of an unnamed,
                unimproved road north of U.S. Highway 101 and BM 684 in the La Laguna
                Grant; then
                 (6) Proceed northwesterly in a straight line 0.32 mile to the
                intersection of Alisos Canyon Road and an unnamed, unimproved road east
                of the Ca[ntilde]ada de los Coches in the La Laguna Grant; then
                 (7) Proceed north-northwest in a straight line for 1.68 miles,
                crossing onto the Foxen Canyon map, to an unnamed hilltop with a marked
                elevation of 997 feet in the La Laguna Grant; then
                 (8) Proceed northeast in a straight line for 0.5 mile to return to
                the beginning point.
                [[Page 52274]]
                 Signed: April 15, 2020.
                Mary G. Ryan,
                Acting Administrator.
                 Approved: July 28, 2020.
                Timothy E. Skud,
                Deputy Assistant Secretary, (Tax, Trade, and Tariff Policy).
                [FR Doc. 2020-16933 Filed 8-24-20; 8:45 am]
                BILLING CODE 4810-31-P
                

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