[Federal Register Volume 67, Number 152 (Wednesday, August 7, 2002)]
[Proposed Rules]
[Pages 51156-51157]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 02-19829]


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DEPARTMENT OF THE TREASURY

Bureau of Alcohol, Tobacco and Firearms

27 CFR Part 9

[Notice No. 951; Re: Notice No. 903]
RIN 1512-AC83


Denial of the California Coast Viticultural Area Petition (2000R-
166P)

AGENCY: Bureau of Alcohol, Tobacco and Firearms (ATF), Treasury.

ACTION: Termination of proposed rulemaking; denial of petition.

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SUMMARY: The Bureau of Alcohol, Tobacco and Firearms (ATF) announces 
the denial of the petition requesting establishment of the ``California 
Coast'' viticultural area and the termination of the related proposed 
rulemaking (Notice No. 903 of September 26, 2000, 65 FR 57763). ATF has 
concluded the petitioned viticultural area fails to meet the regulatory 
requirements issued under the authority of the Federal Alcohol 
Administration Act. ATF also announces that a supplemental report, 
``ATF Response to the California Coast Viticultural Area Petition,'' 
detailing the reasons for the petition's denial is available on the ATF 
website or by U.S. mail as described below.

ADDRESSES: A copy of this notice (Notice No. 951) and a link to the 80-
page supplemental report, ``ATF Response to the California Coast 
Viticultural Area Petition,'' detailing the reasons for the petition's 
denial, are available on the ATF website at: 
http://www.atf.treas.gov/alcohol/rules/index.htm.
    Paper copies of the petition, the proposed regulation, the 
appropriate maps, the comments received in response to Notice No. 903, 
this notice (Notice No. 951), and the supplemental report are available 
for public inspection by appointment in the ATF Reading Room, Rm. 6480, 
650 Massachusetts Avenue, NW., Washington, DC 20226; telephone (202) 
927-7890.
    To obtain paper copies of the supplemental report, the comments 
received, or any other of the above documents by mail (at 20 cents per 
page), contact the ATF Librarian at the above address.

FOR FURTHER INFORMATION CONTACT: Nancy Sutton, Specialist, Regulations 
Division (San Francisco, CA), Bureau of Alcohol, Tobacco and Firearms, 
221 Main Street, 11th Floor, San Francisco, CA 94105; telephone (415) 
947-5192.

SUPPLEMENTARY INFORMATION:

Background--Viticultural Areas

    The Federal Alcohol Administration Act (FAA Act) at 27 U.S.C. 
205(e) requires that alcohol beverage labels provide the consumer with 
adequate information regarding a product's identity and prohibits the 
use of deceptive information on such labels. The FAA Act also 
authorizes the Bureau of Alcohol, Tobacco and Firearms (ATF) to issue 
regulations to carry out its provisions.
    Regulations in 27 CFR part 4, Labeling and Advertising of Wine, 
allow the establishment of definitive viticultural areas. The 
regulations allow the names of approved viticultural areas to be used 
as appellations of origin on wine labels and in wine advertisements. 
Section 4.25a(e)(1) defines an American viticultural area as a 
delimited grape-growing region distinguishable from surrounding areas 
by geographical features such as climate, elevation, soil, and 
topography.
    ATF believes that viticultural area designations enable consumers 
to better identify the origin of the grapes used to produce a wine, 
provide significant information about the identity of a wine, and 
prevent consumer deception through the establishment of specific 
boundaries for viticultural areas. A list of approved viticultural 
areas is contained in 27 CFR part 9, American Viticultural Areas.
    Any interested person may petition ATF to establish a grape-growing 
region as a viticultural area. The petition should include a 
description of area's proposed boundaries and United States Geological 
Survey maps with those boundaries prominently marked, as well as:
     Evidence that the name of the proposed viticultural area 
is locally and/or nationally known as referring to the area specified 
in the petition;
     Historical or current evidence that the boundaries of the 
viticultural area are as specified in the petition; and
     Evidence relating to the geographical characteristics 
(climate, soil, elevation, physical features, etc.), which distinguish 
the viticultural features of the proposed area from surrounding areas.
    The petitioner bears the burden of providing evidence showing that 
a proposed viticultural area meets the regulatory requirements. ATF 
utilizes the proposed rulemaking process to facilitate the submission 
of additional information from the public showing that the proposed 
area does or does not comply with the regulatory requirements.

Background--California Coast Petition

1998 ``California Coastal'' Petition

    In 1998, a group known as the Coastal Alliance submitted a petition 
to ATF requesting the establishment of the ``California Coastal'' 
viticultural area. The petitioned area's boundaries, extending along 
the California coastline north from Mexico into Mendocino County 175 
miles south of the Oregon border, coincided with the established South 
Coast viticultural area's southern boundary and with the North Coast 
viticultural area's northern boundary.
    ATF reviewed the petition and determined that the petitioned 
viticultural area did not meet the regulatory requirements. In the 
letter denying this petition, ATF noted that the ``California Coastal'' 
name could apply to the State's entire coastline and not just to the 
portion included in the petitioned area. ATF also determined that the 
petitioned viticultural area's geographic and climatic features were 
too diverse for it to be considered a delimited grape-growing region 
distinguishable from surrounding areas.

March 2000 ``California Coast'' Petition

    The California Coast Alliance submitted a new petition to ATF on 
March 17, 2000, proposing the establishment of the ``California Coast'' 
viticultural area. The Alliance stated that the California Coast 
viticultural area would provide consumers with valuable information 
about the origin of wine made in this area and help prevent consumer 
deception from the growing

[[Page 51157]]

use of references to the California coast and coastal areas on wine 
labels.
    The proposed California Coast viticultural area covered 22,000 
square miles and spanned 650 miles along the Pacific coast, from the 
Mexican border north into Mendocino County in northern California, 175 
miles south of the Oregon border. The petitioned area's inland width 
varied from approximately 5 to 68 miles. The petition's proposed 
boundary lines joined the established South Coast, Central Coast, San 
Francisco Bay, and North Coast viticultural areas and filled in the 
gaps between those established areas. The petitioned area included a 
total of 68 smaller, established viticultural areas.

Notice No. 903 and Resulting Comments

    On September 26, 2000, ATF published a Notice of Proposed 
Rulemaking, Notice No. 903, in the Federal Register (65 FR 57763) 
soliciting public comments regarding the proposed California Coast 
viticultural area. In response to that notice, ATF received 477 
comments from vineyard and winery owners, industry associations, city 
and county officials, and individuals. Of those commenting, 97% opposed 
the petition. These commenters stated that the petitioned area did not 
meet the regulatory requirements, and, if established, would threaten 
the California wine industry, jeopardize the viticultural area system, 
mislead consumers, and make the Estate-bottled claim less meaningful.

ATF Analysis of Petition and Comments

    Prior to denying the California Coast viticultural area's 
establishment, ATF thoroughly reviewed all the information provided in 
the March 2000 petition and in the comments and documentation filed in 
response to Notice No. 903. The documentation and evidence provided by 
commenters and ATF's own research has established that the petitioned 
California Coast viticultural area fails to meet the regulatory 
requirements of 27 CFR, part 9, American Viticultural Areas.

Summary of the Reasons for Denial

    The primary reasons for the denial of the California Coast 
viticultural area petition were:
     As commonly understood, the name ``California Coast'' 
applies to a longer coastal region than was included in the proposed 
area; and
     The significant climatic diversity found within the 
petitioned area due to its great north-south span.
Name Evidence
    ATF has concluded that the California Coast viticultural area's 
petitioned boundary lines do not reflect the public's understanding of 
the ``California Coast'' name or meet the linguistic, geographic, or 
definition standards for viticultural areas or wine labeling purposes. 
ATF believes the term ``California Coast'' refers to the entire Pacific 
coastal area between Mexico and Oregon, and that no other use of the 
name, as related to a geographical area, can be considered accurate and 
true for viticultural area purposes.
Geographical Evidence
    The geographical evidence presented in response to the Notice No. 
903 shows that the proposed California Coast viticultural area is not a 
unified geographical area with viticultural features that distinguish 
it from surrounding areas. The area's proposed boundaries span almost 
650 miles from north to south, and include shoreline, coastal plains, 
5,000-foot high mountain ranges, and interior basins and valleys.
    While the Pacific Ocean plays a dominate role in the California's 
coastal climate, the petitioned area's latitudinal span and differing 
ocean currents lead to significant climatic variations within it. 
Temperatures decrease, while rainfall and summer fog increase from 
south to north within the petitioned area. Two major ocean currents, 
the cold California Current flowing south from Alaska to Santa Barbara 
and the warmer Southern California Counter-Current flowing north from 
Mexico to Santa Barbara, are also responsible for the significantly 
different onshore coastal climates found within the petitioned area.
    These factors are reflected in the petitioned area's differing 
climatic classifications. Experts classify the petitioned area's 
southern portion as a steppe or desert climate, while the central and 
northern portions are classified as a Mediterranean climate. ATF notes 
that even if the entire California coastline from Mexico to the Oregon 
border were included within a proposed viticultural area, such an area 
would likely have even greater climate diversity. Such a proposed area 
would, therefore, also not meet the regulatory criteria for an American 
viticultural area.

Supplemental Report Available

    An 80-page report, ``ATF Response to the California Coast 
Viticultural Area Petition,'' containing a detailed analysis of the 
petition evidence, commenter information and documentation, under the 
requirements of 27 CFR 9.3(b)(1) through (3) for name evidence, 
boundary evidence, and geographical evidence, is available on the ATF 
Internet website at: http://www.atf.treas.gov/alcohol/rules/index.htm. 
Paper copies of the report are also available as described in the 
ADDRESSES section above.

Drafting Information

    The principal author of this document is Nancy Sutton, Regulations 
Division, Bureau of Alcohol, Tobacco and Firearms. Michael D. Hoover 
provided editorial assistance.

    Signed: July 29, 2002.
Bradley A. Buckles,
Director.
[FR Doc. 02-19829 Filed 8-6-02; 8:45 am]
BILLING CODE 4810-31-P