[Federal Register Volume 81, Number 36 (Wednesday, February 24, 2016)]
[Rules and Regulations]
[Pages 9105-9109]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2016-03860]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 9

[Docket No. TTB-2015-0007; T.D. TTB-133; Ref: Notice No. 151]
RIN 1513-AC17


Establishment of the Lamorinda 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

[[Page 9106]]

approximately 29,369-acre ``Lamorinda'' viticultural area in Contra 
Costa County, California. The viticultural area lies entirely within 
the larger San Francisco Bay viticultural area and the multicounty 
Central Coast viticultural area. TTB designates viticultural areas to 
allow vintners to better describe the origin of their wines and to 
allow consumers to better identify wines they may purchase.

DATES: This final rule is effective March 25, 2016.

FOR FURTHER INFORMATION CONTACT: Jesse Longbrake, 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. 066.

SUPPLEMENTARY INFORMATION:

Background on Viticultural Areas

TTB Authority

    Section 105(e) of the Federal Alcohol Administration Act (FAA Act), 
27 U.S.C. 205(e), authorizes the Secretary of the Treasury to prescribe 
regulations for the labeling of wine, distilled spirits, and malt 
beverages. The FAA Act provides that these regulations should, among 
other things, prohibit consumer deception and the use of misleading 
statements on labels and ensure that labels provide the consumer with 
adequate information as to the identity and quality of the product. The 
Alcohol and Tobacco Tax and Trade Bureau (TTB) administers the FAA Act 
pursuant to section 1111(d) of the Homeland Security Act of 2002, 
codified at 6 U.S.C. 531(d). The Secretary has delegated various 
authorities through Treasury Department Order 120-01, dated December 
10, 2013 (superseding Treasury Department Order 120-01, dated January 
24, 2003), to the TTB Administrator to perform the functions and duties 
in the administration and enforcement of these provisions.
    Part 4 of the TTB regulations (27 CFR part 4) authorizes TTB to 
establish definitive viticultural areas and regulate the use of their 
names as appellations of origin on wine labels and in wine 
advertisements. Part 9 of the TTB regulations (27 CFR part 9) sets 
forth standards for the preparation and submission of petitions for the 
establishment or modification of American viticultural areas (AVAs) and 
lists the approved AVAs.

Definition

    Section 4.25(e)(1)(i) of the TTB regulations (27 CFR 4.25(e)(1)(i)) 
defines a viticultural area for American wine as a delimited grape-
growing region having distinguishing features, as described in part 9 
of the regulations, and a name and a delineated boundary, as 
established in part 9 of the regulations. These designations allow 
vintners and consumers to attribute a given quality, reputation, or 
other characteristic of a wine made from grapes grown in an area to the 
wine's geographic origin. The establishment of AVAs allows vintners to 
describe more accurately the origin of their wines to consumers and 
helps consumers to identify wines they may purchase. Establishment of 
an AVA is neither an approval nor an endorsement by TTB of the wine 
produced in that area.

Requirements

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

Lamorinda Petition

    TTB received a petition from Patrick L. Shabram, on behalf of the 
Lamorinda Wine Growers Association, proposing the establishment of the 
``Lamorinda'' AVA. The proposed Lamorinda AVA is located in Contra 
Costa County, California, and contains the cities of Lafayette, Moraga, 
and Orinda. The proposed viticultural area lies in the northeast 
portion of the established San Francisco Bay AVA (27 CFR 9.157) and 
also within the larger, multicounty Central Coast AVA (27 CFR 9.75).
    The proposed AVA covers approximately 29,369 acres and has 46 
commercially-producing vineyards that cover approximately 139 acres. 
The petition states that the individual vineyards are small, each 
covering less than 5 acres, due to the hilly terrain and the largely 
suburban nature of the region. However, three much larger commercial 
vineyards covering a total of 130 acres are either in the early 
development or public review stages. There are also six bonded wineries 
currently within the proposed AVA.
    According to the petition, the distinguishing features of the 
proposed Lamorinda AVA are its topography, geology, soils, and climate. 
The terrain of the proposed AVA is composed of moderate-to-steep hills 
with narrow valleys. The steep hillsides prevent the use of machinery 
for vineyard work within the proposed AVA, requiring instead that the 
work be done by hand. The proposed AVA is suitable for both cool- and 
warm-climate varietals because the hilly terrain results in disparate 
levels of sunlight at different elevations. The terrain of the proposed 
AVA contrasts with the steeper, more rugged terrain to the south and 
west and the lower, flatter plains to the north and east. Additionally, 
the proposed Lamorinda AVA is characterized by a distinct suburban land 
use pattern which tends to provide property owners with enough room to 
plant vineyards large enough for commercial viticulture. This contrasts 
with the more urban and densely populated areas to the east and west.
    The dominant geological formation of the proposed Lamorinda AVA is 
the Orinda Formation, while the Briones and Mulholland Formations are 
also present. These underlying geological formations affect viticulture 
in the proposed AVA due to their role in forming the soils of the 
region. Other geographic formations dominate the surrounding area.
    The soils of the proposed AVA have high levels of clay attributable 
to the weathering of the clay-rich Orinda Formation. Typically, clay-
rich soils have high water-holding capacities, but within the proposed 
AVA the thinness of the soils, steepness of terrain, and presence of 
sand in the soils allow rapid runoff of excess water. These features 
reduce the risk of vineyard diseases and rot normally associated with 
soils with high water-holding capacities. In contrast to the clay-rich 
soils of the proposed AVA, the soils to the west, south, and southeast 
are characterized by sedimentary and volcanic materials; soils to the 
north are typically fine-grained bay mud; and soils to the east

[[Page 9107]]

are characterized by deeper, coarser alluvial deposits.
    Finally, the proposed Lamorinda AVA generally has a warmer climate 
than the surrounding areas to the north, south, and west. The high 
ridgelines present to the north and west of the proposed AVA limit the 
amount of cool marine air and fog that enters the region from San 
Francisco Bay, San Pablo Bay, and Suisun Bay, resulting in higher 
growing degree day (GDD) \1\ accumulations within the region. This 
allows vineyards in the proposed AVA to support slower-maturing 
varieties of grapes which require longer growing seasons. The regions 
to the north, south, and west are more exposed to marine air and fog 
and have lower GDD accumulations than the proposed AVA. The area due 
east and further inland from the proposed AVA receives less marine air 
and fog, and experiences higher GDD accumulations than the proposed 
AVA.
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    \1\ In the Winkler climate classification system, annual heat 
accumulation during the growing season, measured in annual 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. See Albert J. 
Winkler, General Viticulture (Berkeley: University of California 
Press, 1974), pages 61-64.
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Notice of Proposed Rulemaking and Comments Received

    TTB published Notice No. 151 in the Federal Register on April 14, 
2015 (80 FR 19895), proposing to establish the Lamorinda 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. 
151.
    In Notice No. 151, 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 Lamorinda AVA's location 
within the existing San Francisco Bay AVA and the larger, multicounty 
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 existing San 
Francisco Bay AVA and the larger, multicounty Central Coast AVA. 
Finally, TTB requested comments on whether the geographic features of 
the proposed AVA are so distinguishable from the surrounding San 
Francisco Bay AVA and the larger, multicounty Central Coast AVA that 
the proposed Lamorinda AVA should no longer be part of the established 
AVAs. The comment period closed June 15, 2015.

Comments Received

    In response to Notice No. 151, TTB received a total of 12 comments. 
Commenters were primarily local residents and members of the wine 
industry from the Lamorinda region, including vineyard owners, 
winemakers, and a retail wine shop proprietor. Commenters also included 
wine industry members from outside of the Lamorinda region who work 
with Lamorinda-based industry members in various capacities. All of the 
comments generally supported the establishment of the proposed AVA due 
to the unique microclimates, soils, and geology of the Lamorinda 
region. Comments also emphasized the strong sense of community identity 
and commitment to local wines in Lamorinda, and suggested that the 
establishment of the Lamorinda AVA will help Lamorinda consumers to 
identify and buy local wines. Further, some comments noted that because 
the San Francisco Bay and Central Coast AVAs are so large and diverse, 
they do not necessarily reflect the specific characteristics of 
Lamorinda grapes and wines, and as a result, establishing the Lamorinda 
AVA will help wine industry members in the region differentiate 
themselves from others within the larger AVAs.
    The comments did not raise any new issues concerning the proposed 
Lamorinda AVA, and TTB received no comments opposing its establishment. 
TTB received one comment (comment 3) in response to its question of 
whether the proposed Lamorinda AVA is so distinguishable from the 
established San Francisco Bay AVA and the Central Coast AVA that the 
proposed AVA should not be part of the established AVAs. While the 
commenter noted his belief that the proposed AVA's combination of 
climate, soil, and topography is different from most, if not all, other 
winegrowing areas in the San Francisco Bay and Central Coast AVAs, the 
commenter supported finalizing the rulemaking as proposed in the 
interest of the expedient establishment of a Lamorinda AVA.

TTB Determination

    After careful review of the petition and the comments received in 
response to Notice No. 151, TTB finds that the evidence provided by the 
petitioner supports the establishment of the Lamorinda 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 ``Lamorinda'' AVA in Contra Costa 
County, California, effective 30 days from the publication date of this 
document.
    TTB has also determined that the Lamorinda AVA will remain part of 
the established San Francisco Bay AVA and the larger, multicounty 
Central Coast AVA. As discussed in Notice No. 151, both the San 
Francisco Bay AVA and the Lamorinda AVA are characterized by climates 
heavily influenced by marine air and fog from San Francisco Bay and the 
Pacific Ocean. However, as compared to other portions of the San 
Francisco Bay AVA, the Lamorinda AVA is more isolated from cool marine 
air due to the higher surrounding elevations and is also less affected 
by the heavy diurnal fog that characterizes the more coastal portions 
of the San Francisco Bay AVA.
    Further, as discussed in Notice No. 151, the large, 1 million-acre 
Central Coast AVA is only distinguished by the fact that all of its 
included counties experience marine climate influence due to their 
proximity to the Pacific Ocean. The Lamorinda AVA is located within the 
Central Coast AVA and, like the larger AVA, experiences mild marine 
breezes and nocturnal marine fog. However, due to its much smaller 
size, the proposed AVA has greater uniformity in geographical features 
such as topography, temperature, and soils, than the larger, 
multicounty Central Coast AVA.

Boundary Description

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

Maps

    The petitioner provided the required maps, and they are listed 
below in the regulatory text.

Impact on Current Wine Labels

    Part 4 of the TTB regulations prohibits any label reference on a 
wine that indicates or implies an origin other than the wine's true 
place of origin. For a wine to be labeled with an AVA name or with a 
brand name that includes an AVA name, at least 85 percent of the wine 
must be derived from grapes grown within the area represented by that 
name, and the wine must meet the other conditions listed in 27 CFR 
4.25(e)(3). If the wine is not eligible for

[[Page 9108]]

labeling with an AVA name and that name appears in the brand name, then 
the label is not in compliance and the bottler must change the brand 
name and obtain approval of a new label. Similarly, if the AVA name 
appears in another reference on the label in a misleading manner, the 
bottler would have to obtain approval of a new label. Different rules 
apply if a wine has a brand name containing an AVA name that was used 
as a brand name on a label approved before July 7, 1986. See 27 CFR 
4.39(i)(2) for details.
    With the establishment of this AVA, its name, ``Lamorinda,'' 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 
regulation clarifies this point. Consequently, wine bottlers using the 
name ``Lamorinda'' 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 Lamorinda AVA will not affect any existing 
AVA, and any bottlers using ``San Francisco Bay'' or ``Central Coast'' 
as an appellation of origin or in a brand name for wines made from 
grapes grown within the San Francisco Bay AVA or the Central Coast AVA, 
respectively, will not be affected by the establishment of this new 
AVA. The establishment of the Lamorinda AVA will allow vintners to use 
``Lamorinda'', ``San Francisco Bay'', and ``Central Coast'' as 
appellations of origin for wines made primarily from grapes grown 
within the Lamorinda 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

    Jesse Longbrake 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.  9.254 to read as follows:


Sec.  9.254  Lamorinda.

    (a) Name. The name of the viticultural area described in this 
section is ``Lamorinda''. For purposes of part 4 of this chapter, 
``Lamorinda'' is a term of viticultural significance.
    (b) Approved maps. The four United States Geological Survey (USGS) 
1:24,000 scale topographic maps used to determine the boundary of the 
Lamorinda viticultural area are titled:
    (1) Walnut Creek, CA, 1995;
    (2) Las Trampas Ridge, CA, 1995;
    (3) Oakland East, CA, 1997; and
    (4) Briones Valley, CA, 1995.
    (c) Boundary. The Lamorinda viticultural area is located in Contra 
Costa County, California. The boundary of the Lamorinda viticultural 
area is as described below:
    (1) The beginning point is on Walnut Creek map at the water tank 
(known locally as the Withers Reservoir) at the end of an unnamed 
light-duty road known locally as Kim Road, in the Ca[ntilde]ada del 
Hambre y Las Bolsas Land Grant.
    (2) From the beginning point, proceed south-southeast in a straight 
line approximately 0.8 mile to the 833-foot peak marked ``Hump 2;'' 
then
    (3) Proceed southeast in a straight line approximately 1.7 miles to 
the marked 781-foot peak south of the shared Lafayette-Walnut Creek 
corporate boundary line and north of an unnamed light-duty road known 
locally as Peaceful Lane; then
    (4) Proceed southeast in a straight line approximately 0.3 mile to 
the marked 610-foot peak southwest of an unnamed light-duty road known 
locally as Secluded Place; then
    (5) Proceed south-southwest in a straight line approximately 1.7 
miles to an unidentified benchmark at the end of an unnamed unimproved 
road known locally as Diablo Oaks Way in section 33, T1N/R2W; then
    (6) Proceed southeast in a straight line approximately 0.5 mile, 
crossing onto the Las Trampas map, and continuing another 0.9 mile to 
the substation at the southeast corner of section 4, T1S/R2W; then
    (7) Proceed southeast in a straight line approximately 2.3 miles to 
the 1,827-foot summit of Las Trampas Peak, section 22, T1S/R2W; then
    (8) Proceed south-southeast in a straight line approximately 2.1 
miles to the 2,024-foot benchmark marked ``Rock 2'' in section 26, T1S/
R2W; then
    (9) Proceed west-southwest in a straight line approximately 2.7 
miles to the marked 1,057-foot peak in section 29, T1S/R2W; then
    (10) Proceed west-southwest in a straight line approximately 2 
miles to the intersection of the 1,000-foot elevation line with the 
Contra Costa-Alameda County line in section 31, T1S/R2W; then
    (11) Proceed northwest in a straight line approximately 0.4 mile, 
crossing onto the Oakland East map, then continuing another 0.1 mile to 
the 1,121-foot peak in section 30, T1S/R2W; then
    (12) Proceed northwest in a straight line approximately 3.6 miles 
to the 1,301-foot peak in section 15, T1S/R3W; then
    (13) Proceed northwest in a straight line approximately 1.6 miles 
to the 1,634-foot peak in section 9, T1S/R3W; then
    (14) Proceed northwest in a straight line approximately 2.2 miles 
to the communication tower on the Contra Costa-Alameda County line in 
section 5, T1S/R3W; then
    (15) Proceed north in a straight line approximately 0.1 mile, 
crossing onto the Briones Valley map, then continuing another 0.6 mile 
to the 1,905-foot summit of Vollmer Peak in the El Sobrante Land Grant; 
then
    (16) Proceed north-northeast in a straight line approximately 3 
miles, crossing over to the 1,027-foot peak in the Boca de la 
Ca[ntilde]ada del Pinole Land Grant, to the Orinda corporate boundary 
line; then
    (17) Proceed generally east along the Orinda corporate boundary 
line approximately 3.3 miles to the water tank at the 1,142-foot 
elevation in the Boca de la Ca[ntilde]ada del Pinole Land Grant; then
    (18) Proceed east-northeast in a straight line approximately 1.2 
miles to

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the 1,357-foot benchmark marked ``Russell'' in the Boca de la 
Ca[ntilde]ada del Pinole Land Grant; then
    (19) Proceed northwest in a straight line approximately 0.8 mile to 
the 1,405-foot peak in the Boca de la Ca[ntilde]ada del Pinole Land 
Grant; then
    (20) Proceed east-northeast in a straight line approximately 0.5 
mile, crossing onto the Walnut Creek map, then continuing another 1.1 
miles to the beginning point.

    Signed: January 11, 2016.
John J. Manfreda,
Administrator.
    Approved: January 22, 2016.
Timothy E. Skud,
Deputy Assistant Secretary, (Tax, Trade, and Tariff Policy).
[FR Doc. 2016-03860 Filed 2-23-16; 8:45 am]
 BILLING CODE 4810-31-P