[Federal Register Volume 75, Number 42 (Thursday, March 4, 2010)]
[Proposed Rules]
[Pages 9827-9831]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-4569]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 9

[Docket No. TTB-2010-0001; Notice No. 103]
RIN 1513-AB31


Proposed Expansion of the Santa Maria Valley Viticultural Area 
(2008R-287P)

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

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Alcohol and Tobacco Tax and Trade Bureau proposes to 
expand the Santa Maria Valley viticultural area in Santa Barbara and 
San Luis Obispo Counties, California, by 18,790 acres. We designate 
viticultural areas to allow vintners to better describe the origin of 
their wines and to allow consumers to better identify wines they may 
purchase. We invite comments on this proposed change to our 
regulations.

DATES: We must receive your comments on or before May 3, 2010.

ADDRESSES: You may send comments on this notice to one of the following 
addresses:
     http://www.regulations.gov (via the online comment form 
for this notice as posted within Docket No. TTB-2010-0001 at 
``Regulations.gov,'' the Federal e-rulemaking portal);
     Director, Regulations and Rulings Division, Alcohol and 
Tobacco Tax and Trade Bureau, P.O. Box 14412, Washington, DC 20044-
4412; or
     Hand delivery/courier in lieu of mail: Alcohol and Tobacco 
Tax and Trade Bureau, 1310 G Street, NW., Suite 200-E, Washington, DC 
20005.
    See the Public Participation section of this notice for specific 
instructions and requirements for submitting comments, and for 
information on how to request a public hearing.
    You may view copies of this notice, selected supporting materials, 
and any comments we receive about this proposal at http://www.regulations.gov within Docket No. TTB-2010-0001. A direct link to 
this docket is posted on the TTB Web site at http://www.ttb.gov/wine/wine_rulemaking.shtml under Notice No. 103. You also may view copies 
of this notice, all related petitions, maps or other supporting 
materials, and any comments we receive about this proposal by 
appointment at the TTB Information Resource Center, 1310 G Street, NW., 
Washington, DC 20220. Please call 202-453-2270 to make an appointment.

FOR FURTHER INFORMATION CONTACT: N.A. Sutton, Regulations and Rulings 
Division, Alcohol and Tobacco Tax and Trade Bureau, 925 Lakeville St., 
No. 158, Petaluma, CA 94952; telephone 415-271-1254.

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 requires that these regulations, 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 
regulations promulgated under the FAA Act.
    Part 4 of the TTB regulations (27 CFR part 4) allows the 
establishment of definitive viticultural areas and the use of their 
names as appellations of origin on wine labels and in wine 
advertisements. Part 9 of the TTB regulations (27 CFR part 9) contains 
the list of approved viticultural areas.

Definition

    Section 4.25(e)(1)(i) of the TTB regulations (27 CFR 4.25(e)(1)(i)) 
defines a viticultural area for American wine as a delimited grape-
growing region distinguishable by geographical features, the boundaries 
of which have been recognized and defined in part 9 of the regulations. 
These designations

[[Page 9828]]

allow vintners and consumers to attribute a given quality, reputation, 
or other characteristic of a wine made from grapes grown in an area to 
its geographic origin. The establishment of viticultural areas allows 
vintners to describe more accurately the origin of their wines to 
consumers and helps consumers to identify wines they may purchase. 
Establishment of a viticultural area is neither an approval nor an 
endorsement by TTB of the wine produced in that area.

Requirements

    Section 4.25(e)(2) of the TTB regulations outlines the procedure 
for proposing an American viticultural area and provides that any 
interested party may petition TTB to establish a grape-growing region 
as a viticultural area. Petitioners may use the same procedure to 
request changes involving existing viticultural areas. Section 9.3(b) 
of the TTB regulations requires the petition to include--
     Evidence that the proposed viticultural area is locally 
and/or nationally known by the name specified in the petition;
     Historical or current evidence that supports setting the 
boundary of the proposed viticultural area as the petition specifies;
     Evidence relating to the geographical features, such as 
climate, soils, elevation, and physical features, that distinguish the 
proposed viticultural area from surrounding areas;
     A description of the specific boundary of the proposed 
viticultural area, based on features found on United States Geological 
Survey (USGS) maps; and
     A copy of the appropriate USGS map(s) with the proposed 
viticultural area's boundary prominently marked.

Santa Maria Valley Expansion Petition

Background

    On August 5, 1981, the Bureau of Alcohol, Tobacco, and Firearms 
(ATF), our predecessor agency, published T.D. ATF-89 in the Federal 
Register (46 FR 39811), establishing the Santa Maria Valley 
viticultural area (27 CFR 9.28). TTB notes that the Santa Maria Valley 
viticultural area lies entirely within the Central Coast viticultural 
area (27 CFR 9.75) and covers 97,483 acres in southern San Luis Obispo 
County and northern Santa Barbara County, California. In the 
Geographical Evidence section, T.D. ATF-89 stated that prevailing ocean 
winds blow west to east, into and through the Santa Maria Valley. The 
winds create a climate where air temperatures are comparatively cooler 
in summer and winter, but warmer in fall, than the surrounding areas.
    In March 2006, Sara Schorske of Compliance Service of America, 
Inc., on behalf of a group of local winery and vineyard owners, 
submitted a petition proposing an expansion of the southern and western 
boundaries of the current Santa Maria Valley viticultural area. The 
petition presented evidence and documentation in recognition of the 
geographical name of the proposed southern expansion area and in 
support of the similarities of its climate, soils, terrain, and 
watershed with those of the current viticultural area. The petition 
also documented significant commercial viticulture to the south of the 
current southern boundary line. However, TTB returned the March 2006 
petition to expand the Santa Maria Valley viticultural area with a 
letter recommending that the petitioner delete the western expansion 
portion, about which sufficient justification was not presented.
    Ms. Schorske then submitted the current petition, under 
consideration in this notice, which requests only a southern expansion 
(consisting of 18,700 acres) of the existing Santa Maria Valley 
viticultural area. The proposed expansion area lies in northern Santa 
Barbara County, according to the written boundary description and 
accompanying USGS maps, and also is within the Central Coast 
viticultural area. The proposed expansion area includes 9 vineyards, 
255 acres of commercial viticulture, and 60 to 200 acres under 
viticultural development, according to the petition.

Name Evidence

    The current petition explains that the original petition supporting 
the establishment of the Santa Maria Valley viticultural area in 1981 
documented the ``Santa Maria Valley'' name for the geographical area. 
Hence, T.D. ATF-89, in establishing the Santa Maria Valley viticultural 
area, determined that the most appropriate name for the geographical 
area was Santa Maria Valley.
    The current petition states that the proposed southern expansion of 
the Santa Maria Valley viticultural area generally follows the 
watershed boundary line between the Santa Maria Valley to the north and 
the Los Alamos Valley to the south. The current petition relies on the 
Santa Maria River watershed for name recognition of the expansion area.

Boundary Evidence

    The current southern boundary line of the Santa Maria Valley 
viticultural area follows Foxen Canyon Road and Clark Avenue, at 
Sisquoc, 4.2 miles inside the southern perimeter of the Santa Maria 
River watershed, according to the current written boundary description 
and the accompanying USGS maps. On the south side of the Santa Maria 
Valley watershed, the creeks drain northward to lower elevations, 
through the valley, into the Santa Maria River, as shown on the USGS 
Foxen Canyon, Sisquoc, and Orcutt maps. Computer-generated watershed 
maps show that the proposed expansion of the southern boundary line 
conforms to the Santa Maria River watershed, according to the petition.
    The boundary line of the proposed southern expansion of the Santa 
Maria Valley viticultural area, going clockwise, starts at the 
southeast corner of the current viticultural area boundary and travels 
generally in a straight line west-northwest over the Solomon Hills to 
its intersection with U.S. Route 101, according to the written boundary 
description and accompanying USGS maps. Following U.S. 101, the 
proposed boundary line continues north to Clark Avenue in Orcutt, 
rejoining the current boundary line of the Santa Maria Valley 
viticultural area.

Distinguishing Features

Santa Maria Valley Viticultural Area as Established by T.D. ATF-89
    TTB notes that in establishing the Santa Maria Valley viticultural 
area, T.D. ATF-89 cited terrain, soils, and climate as distinguishing 
features.
    Terrain: According to T.D. ATF-89, the boundary line of the Santa 
Maria Valley viticultural area surrounds the Santa Maria Valley floor, 
adjacent canyons, and sloping terraces. Elevations vary from a low of 
200 feet at the Santa Maria River to a high of 3,200 feet at Tepusquet 
Peak. As shown on the USGS Foxen Canyon map, a westward projection of 
the San Rafael Mountains, peaking at 1,801 feet in elevation, extends 
approximately 4 miles into the southeast portion of the current Santa 
Maria Valley viticultural area. According to the USGS maps, the current 
southern boundary line varies from 600 to 1,000 feet in elevation. 
Vineyards within the original viticultural area were planted between 
elevations of 300 feet on the valley floor and 800 feet on the slopes 
of the rolling hillsides.
    Soils and Climate: According to T.D. ATF-89, the soils of the Santa 
Maria Valley viticultural area are well drained, fertile, and range in 
texture from sandy

[[Page 9829]]

loam to clay loam. Of climatic importance to the viticultural area, as 
compared to the surrounding regions, are the prevailing, cooling, 
marine-influenced ocean winds.
Current Petition To Expand the Santa Maria Valley Viticultural Area
    Terrain: The petition states that the geography of the proposed 
southern expansion of the Santa Maria Valley viticultural area is 
similar to that inside the current southern boundary line. The valley 
lies generally along an east-southeast axis, and is approximately 16 
miles long within the existing viticultural area and the proposed 
expansion area, as shown on ``Locations of Weather Stations and 
Selected Vineyards and Wineries'' (map, undated), which the petitioner 
created and submitted with the petition. In the southern expansion 
area, gently rolling hills give way to a more rugged terrain of canyons 
and steep slopes, as shown on the USGS Foxen Canyon and Sisquoc maps. 
Elevations in the southern expansion area vary between approximately 
440 feet near Sisquoc to 1,360 feet at the southeast corner of the 
current Santa Maria Valley viticultural area, and are comparable to 
those in areas on or surrounding the Santa Maria Valley floor.
    The petition includes a table, shown below, with the elevations of 
commercial vineyards in the southern portion of the current Santa Maria 
Valley viticultural area and in the proposed southern expansion area. 
Elevations of vineyards within the southern portion of the current 
Santa Maria Valley viticultural area range from 600 to 950 feet; 
similarly, those of vineyards in the proposed southern expansion area 
range from 600 to 930 feet.

------------------------------------------------------------------------
                                                             Approximate
            Vineyard                      Location          elevation in
                                                                feet
------------------------------------------------------------------------
Rancho Ontiveros................  Within the AVA..........           650
Solomon Hills...................  Within the AVA..........           700
Good Child......................  Within the AVA..........       750-800
Riverbench......................  Within the AVA..........           950
Rancho Sisquoc..................  Within the AVA..........       600-750
Foxen...........................  Within the AVA..........           720
Addamo Estate...................  Within the proposed            760-840
                                   expansion.
Solomon Hills...................  Within the proposed            640-840
                                   expansion.
Casa Torres.....................  Within the proposed            720-800
                                   expansion.
Le Bon Climate..................  Within the proposed                600
                                   expansion.
Lucas Lewellan..................  Within the proposed                700
                                   expansion.
Foxen...........................  Within the proposed            800-900
                                   expansion.
Rancho Real.....................  Within the proposed            650-930
                                   expansion.
Murphy..........................  Within the proposed            750-880
                                   expansion.
------------------------------------------------------------------------

    Climate: The petition explains that the Santa Maria Valley has a 
``maritime fringe'' climate (``The Climate of Southern California,'' by 
Harry P. Bailey, University of California Press, 1966). The maritime 
fringe climate derives from the Pacific Ocean, causing foggy and windy 
conditions in the Santa Maria Valley. In contrast, some other inland, 
high-elevation areas nearby have either less or no marine influence.
    The petition states that during the summer growing season, the 
marine air moves onshore, passing through low-elevation passes in the 
Coast Range, inland to the Santa Maria Valley. (T.D. ATF-89 describes 
the Santa Maria Valley as a ``natural funnel-shaped'' valley.) 
Temperatures remain consistent throughout the gentle west-to-east rise 
in elevations of the Santa Maria Valley. The petition states that the 
cooling wind and fog encounter little resistance in any direction until 
they meet the Sierra Madre Mountains on the north side of the valley 
and the Solomon Hills on the south side, where the valley terminates. 
The boundary of the proposed southern expansion extends to the Solomon 
Hills, where the petition asserts that the cooling wind and fog 
encounter resistance.
    The petition includes a map that shows the broad, westerly opening 
between these mountains and hills and how they would funnel the cooling 
wind and fog in an east-southeast direction, into the valley. T.D. ATF-
89 states that ``* * * the prevailing winds from the ocean [cause] the 
valley to have a generally cooler summer, warmer fall, and cooler 
winter than surrounding areas.''
    The current petition provides data from two weather stations, one 
within the established Santa Maria Valley viticultural area and one 
within the proposed expansion area. Both stations are nestled along 
foothills, slightly above the valley floor. A graph in the petition 
presents heat accumulation data recorded in 2004 at the two stations.
    The graph shows that growing season totals for 2004 in the current 
viticultural area and in the proposed expansion area were both just 
less than 3,000 degree days. (As a measurement of heat accumulation 
during the growing season, 1 degree day accumulates for each degree 
Fahrenheit that a day's mean temperature is above 50 degrees, the 
minimum temperature required for grapevine growth. See pages 61-64 of 
``General Viticulture,'' Albert J. Winkler, University of California 
Press, 1975.)
    Soils: According to the petition, the current Santa Maria Valley 
viticultural area consists of a wide variety of soils without a single 
dominant soil type. The petition provides a table listing the soil map 
units in the current Santa Maria Valley viticultural area and in the 
proposed expansion area. The table is divided into four general areas. 
Three areas are within the current Santa Maria Valley viticultural 
area: (1) Valley floor, (2) hills (the Solomon Hills), and (3) 
mountains (the foothills of the Sierra Madre Mountains, northeast of 
the Santa Maria River). The fourth is the proposed southern expansion 
area.
    As shown in the table, the soils are mainly sand, sandy loam, and 
loam on the valley floor, but are mixed sandy loam, clay loam, shaly 
loam, and silt loam on mountains. However, without exception, the soils 
that are in the proposed expansion area are also in the existing Santa 
Maria Valley viticultural area. In both the proposed expansion area and 
on hills in the current viticultural area, the soils are sand, sandy 
loam, clay loam, and shaly clay loam, but are mostly loam and shaly 
loam.

[[Page 9830]]

TTB Determination

    TTB concludes that the petition to expand the Santa Maria Valley 
American viticultural area merits consideration and public comment, as 
invited in this notice.

Boundary Description

    See the narrative boundary description incorporating the 
petitioned-for viticultural area expansion in the proposed regulatory 
text amendments published at the end of this notice.

Maps

    The petitioner provided the required maps, and we list them below 
in the proposed regulatory text amendment.

Impact on Current Wine Labels

    The proposed expansion of the Santa Maria Valley viticultural area 
will not affect currently approved wine labels. The approval of this 
proposed expansion may allow additional vintners to use ``Santa Maria 
Valley'' as an appellation of origin on their 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 a viticultural area name or with 
a brand name that includes a viticultural area name or other term 
identified as viticulturally significant in part 9 of the TTB 
regulations, at least 85 percent of the wine must be derived from 
grapes grown within the area represented by that name or other term, 
and the wine must meet the other conditions listed in 27 CFR 
4.25(e)(3). Different rules apply if a wine has a brand name containing 
a viticultural area name or other viticulturally significant term that 
was used as a brand name on a label approved before July 7, 1986. See 
27 CFR 4.39(i)(2) for details.

Public Participation

Comments Invited

    We invite comments from interested members of the public on whether 
we should expand the Santa Maria Valley viticultural area as described 
above. We are especially interested in comments concerning the 
similarity of the proposed expansion area to the current Santa Maria 
Valley viticultural area, the geographical features that distinguish 
the viticultural features of the proposed expansion area from the area 
beyond it to the south, and the use of the Santa Maria River watershed 
to justify the proposed expansion of the southern boundary line. Please 
support your comments with specific information about the proposed 
expansion area's name, proposed boundaries, or distinguishing features.

Submitting Comments

    You may submit comments on this notice by using one of the 
following three methods:
     Federal e-Rulemaking Portal: You may send comments via the 
online comment form posted with this notice in Docket No. TTB-2010-0001 
on ``Regulations.gov,'' the Federal e-rulemaking portal, at http://www.regulations.gov. A direct link to that docket is available under 
Notice No. 103 on the TTB Web site at http://www.ttb.gov/wine/wine_rulemaking.shtml. Supplemental files may be attached to comments 
submitted via Regulations.gov. For complete instructions on how to use 
Regulations.gov, visit the site and click on ``User Guide'' under ``How 
to Use this Site.''
     U.S. Mail: You may send comments via postal mail to the 
Director, Regulations and Rulings Division, Alcohol and Tobacco Tax and 
Trade Bureau, P.O. Box 14412, Washington, DC 20044-4412.
     Hand Delivery/Courier: You may hand-carry your comments or 
have them hand-carried to the Alcohol and Tobacco Tax and Trade Bureau, 
1310 G Street, NW., Suite 200-E, Washington, DC 20005.
    Please submit your comments by the closing date shown above in this 
notice. Your comments must reference Notice No. 103 and include your 
name and mailing address. Your comments also must be made in English, 
be legible, and be written in language acceptable for public 
disclosure. We do not acknowledge receipt of comments, and we consider 
all comments as originals.
    If you are commenting on behalf of an association, business, or 
other entity, your comment must include the entity's name as well as 
your name and position title. If you comment via http://www.regulations.gov, please enter the entity's name in the 
``Organization'' blank of the comment form. If you comment via mail, 
please submit your entity's comment on letterhead.
    You may also write to the Administrator before the comment closing 
date to ask for a public hearing. The Administrator reserves the right 
to determine whether to hold a public hearing.

Confidentiality

    All submitted comments and attachments are part of the public 
record and subject to disclosure. Do not enclose any material in your 
comments that you consider to be confidential or inappropriate for 
public disclosure.

Public Disclosure

    On the Federal e-rulemaking portal, Regulations.gov, we will post, 
and you may view, copies of this notice, selected supporting materials, 
and any electronic or mailed comments we receive about this proposal. A 
direct link to the Regulations.gov docket containing this notice and 
the posted comments received on it is available on the TTB Web site at 
http://www.ttb.gov/wine/wine_rulemaking.shtml under Notice No. 103. 
You may also reach the docket containing this notice and the posted 
comments received on it through the Regulations.gov search page at 
http://www.regulations.gov.
    All posted comments will display the commenter's name, organization 
(if any), city, and State, and, in the case of mailed comments, all 
address information, including e-mail addresses. We may omit voluminous 
attachments or material that we consider unsuitable for posting.
    You also may view copies of this notice, all related petitions, 
maps and other supporting materials, and any electronic or mailed 
comments we receive about this proposal by appointment at the TTB 
Information Resource Center, 1310 G Street, NW., Washington, DC 20220. 
You may also obtain copies at 20 cents per 8.5 x 11-inch page. Contact 
our information specialist at the above address or by telephone at 202-
453-2270 to schedule an appointment or to request copies of comments or 
other materials.

Regulatory Flexibility Act

    We certify that this proposed regulation, if adopted, would not 
have a significant economic impact on a substantial number of small 
entities. The proposed regulation imposes no new reporting, 
recordkeeping, or other administrative requirement. Any benefit derived 
from the use of a viticultural area 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

    This proposed rule is not a significant regulatory action as 
defined by Executive Order 12866. Therefore, it requires no regulatory 
assessment.

Drafting Information

    N.A. Sutton of the Regulations and Rulings Division drafted this 
notice.

[[Page 9831]]

List of Subjects in 27 CFR Part 9

    Wine.

Proposed Regulatory Amendment

    For the reasons discussed in the preamble, we propose to amend 27 
CFR, chapter I, part 9, as follows:

PART 9--AMERICAN VITICULTURAL AREAS

    1. The authority citation for part 9 continues to read as follows:

    Authority:  27 U.S.C. 205.

Subpart C--Approved American Viticultural Areas

    2. Section 9.28 is revised to read as follows:


Sec.  9.28  Santa Maria Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Santa Maria Valley''. For purposes of part 4 of this 
chapter, ``Santa Maria Valley'' is a term of viticultural significance.
    (b) Approved maps. The six United States Geological Survey maps 
used to determine the boundary of the Santa Maria Valley viticultural 
area are titled:
    (1) Orcutt Quadrangle, California-Santa Barbara Co., 7.5 minute 
series, 1959, photorevised 1967 and 1974, photoinspected 1978;
    (2) Santa Maria Quadrangle, California, 7.5 minute series, 1959, 
photorevised 1982;
    (3) ``San Luis Obispo'', N.I. 10-3, series V 502, scale 1: 250,000;
    (4) ``Santa Maria'', N.I. 10-6, 9, series V 502, scale 1: 250,000;
    (5) Foxen Canyon Quadrangle, California-Santa Barbara Co., 7.5-
minute series, 1995; and
    (6) Sisquoc Quadrangle, California-Santa Barbara Co., 7.5 minute 
series, 1959, photoinspected 1974.
    (c) Boundary. The Santa Maria Valley viticultural area is located 
in Santa Barbara and San Luis Obispo Counties, California. The boundary 
is as follows:
    (1) The point of beginning is on the Orcutt quadrangle map at the 
intersection of U.S. Route 101 and Clark Avenue, section 18 north 
boundary line, T9N/R33W, then proceed generally north along U.S. Route 
101 approximately 10 miles onto the Santa Maria quadrangle map to its 
intersection with State Route 166 (east), T10N/R34W; then
    (2) Proceed generally northeast along State Route 166 (east) onto 
the San Luis Obispo N.I. 10-3 map to its intersection with the section 
line southwest of Chimney Canyon, T11N/R32W; then
    (3) Proceed south in a straight line onto the Santa Maria N.I. 10-6 
map to the 3,015-foot summit of Los Coches Mountain; then
    (4) Proceed southeast in a straight line onto the Foxen Canyon 
quadrangle map to the 2,822-foot summit of Bone Mountain, T9N/R32W; 
then
    (5) Proceed south-southwest in a straight line approximately 6 
miles to the line's intersection with secondary highways Foxen Canyon 
Road and Alisos Canyon Road, T8N/R32W; then
    (6) Proceed west-northwest in a straight line approximately 6 miles 
onto the Sisquoc quadrangle map to the Gato Ridge Oil Field and the 
section 4 southeast corner, T8N/R32W; then
    (7) Proceed west-northwest in a straight line approximately 6.2 
miles, crossing over the Solomon Hills, to its intersection with U.S. 
Route 101 and a private, unnamed light-duty road that meanders east 
into the Cat Canyon Oil Field, T9N/R33W; then
    (8) Proceed north 3.75 miles along U.S. Route 101 onto the Orcutt 
quadrangle map and return to the point of beginning.

    Signed: February 5, 2010.
John J. Manfreda,
Administrator.
[FR Doc. 2010-4569 Filed 3-3-10; 8:45 am]
BILLING CODE 4810-31-P