[Federal Register Volume 78, Number 191 (Wednesday, October 2, 2013)]
[Rules and Regulations]
[Pages 60693-60695]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-23944]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade Bureau
27 CFR Part 9
[Docket No. TTB-2013-0001; T.D. TTB-116; Ref: Notice No. 132]
RIN 1513-AB98
Establishment of the Ballard Canyon 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) establishes
the approximately 7,800-acre ``Ballard Canyon'' viticultural area in
Santa Barbara County, California. The viticultural area lies entirely
within the larger Santa Ynez Valley 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 November 1, 2013.
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. 175.
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 (Revised), dated
January 21, 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) 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) sets
forth standards for the preparation and submission of petitions for the
establishment or modification of American viticultural areas and lists
the approved American 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 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 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. Section 9.12 of the TTB regulations (27 CFR
9.12) prescribes standards for petitions for the establishment of
American viticultural areas. Petitions to establish a viticultural area
must include the following:
Evidence that the area within the proposed viticultural
area boundary is nationally or locally known by the viticultural area
name specified in the petition;
An explanation of the basis for defining the boundary of
the proposed viticultural area;
A narrative description of the features of the proposed
viticultural area that affect viticulture, such as climate, geology,
soils, physical features, and elevation, that make the proposed
viticultural area distinctive and distinguish it from adjacent areas
outside the proposed viticultural area boundary;
A copy of the appropriate United States Geological Survey
(USGS) map(s) showing the location of the proposed viticultural area,
with the boundary of the proposed viticultural area clearly drawn
thereon; and
A detailed narrative description of the proposed
viticultural area boundary based on USGS map markings.
Ballard Canyon Petition
TTB received a petition from Wesley D. Hagen, a vineyard manager
and winemaker, on behalf of 26 other vintners and grape growers in the
Ballard Canyon area of California, proposing the establishment of the
``Ballard Canyon'' American viticultural area. The proposed
viticultural area contains approximately 7,800 acres, of
[[Page 60694]]
which approximately 565 acres are dedicated to commercially producing
vineyards. The petition states that there are 10 commercial vineyards
located within the proposed viticultural area, with Syrah being the
primary grape variety grown. According to the petition, the
distinguishing features of the proposed Ballard Canyon viticultural
area include wind, temperature, and soils.
The proposed Ballard Canyon viticultural area is located in Santa
Barbara County, California, to the west of the town of Ballard. The
proposed viticultural area lies at the center of the Santa Ynez Valley
viticultural area (27 CFR 9.54), which, in turn, is within the larger
multicounty Central Coast viticultural area (27 CFR 9.75). The Santa
Ynez Valley viticultural area currently contains two smaller,
established viticultural areas: Sta. Rita Hills (27 CFR 9.162), which
lies to the west of the proposed viticultural area, and Happy Canyon of
Santa Barbara (27 CFR 9.217), which lies to the east of the proposed
Ballard Canyon viticultural area. The Sta. Rita Hills and the Happy
Canyon of Santa Barbara viticultural areas do not share a boundary with
or overlap the proposed Ballard Canyon viticultural area.
Notice of Proposed Rulemaking and Comments Received
TTB published Notice No. 132 in the Federal Register on January 16,
2013 (78 FR 3370), proposing to establish the Ballard Canyon
viticultural area. In the notice, TTB summarized the evidence from the
petition regarding the name, boundary, and distinguishing features for
the proposed viticultural area. The distinguishing features of the
proposed viticultural area include wind, temperature, and soil. The
notice also compared the distinguishing features of the proposed
viticultural area to the surrounding areas. For a description of the
evidence relating to the name, boundary, and distinguishing features of
the proposed viticultural area, and for a comparison of the
distinguishing features of the proposed viticultural area to the
surrounding areas, see Notice No. 132.
In Notice No. 132, TTB solicited comments on the accuracy of the
name, boundary, climatic, and other required information submitted in
support of the petition. In addition, given the proposed viticultural
area's location within the existing Santa Ynez Valley and Central Coast
viticultural areas, TTB solicited comments on whether the evidence
submitted in the petition regarding the distinguishing features of the
proposed viticultural area sufficiently differentiates the proposed
viticultural area from the two existing viticultural areas. TTB also
asked for comments on whether the geographical features of the proposed
viticultural area are so distinguishable from the surrounding Santa
Ynez Valley or Central Coast viticultural areas that the proposed
Ballard Canyon viticultural area should no longer be part of the two
existing viticultural areas. The comment period closed on March 18,
2013.
In response to Notice No. 132, TTB received a total of 3 comments,
all of which supported the establishment of the Ballard Canyon
viticultural area. Two commenters identified themselves as winery
owners within the region of the proposed viticultural area, and the
third commenter described himself as a ``wine industry professional''
who is familiar with wines produced in the Ballard Canyon area. None of
the comments addressed the question of whether or not the Ballard
Canyon viticultural area is so distinguishable from the Santa Ynez
Valley and Central Coast viticultural areas that it should no longer be
part of either existing viticultural area. TTB received no comments in
opposition of the Ballard Canyon viticultural area as proposed.
TTB Determination
After careful review of the petition and the comments received in
response to Notice No. 132, TTB finds that the evidence provided by the
petitioner supports the establishment of the approximately 7,800-acre
Ballard Canyon viticultural area. 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 establishes the ``Ballard Canyon''
viticultural area in Santa Barbara County, California, effective 30
days from the publication date of this document. TTB also determines
that the land within the Ballard Canyon viticultural area will remain
part of both the Santa Ynez Valley and Central Coast viticultural
areas.
Boundary Description
See the narrative boundary description of the viticultural area 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. With the establishment of this viticultural area, its
name, ``Ballard Canyon,'' will be recognized as a name of viticultural
significance under 27 CFR 4.39(i)(3). The text of the regulation
clarifies this point. Once this final rule becomes effective, wine
bottlers using the name ``Ballard 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
viticultural name as an appellation of origin.
The establishment of the Ballard Canyon viticultural area will not
affect any existing viticultural area, and any bottlers using ``Santa
Ynez Valley'' or ``Central Coast'' as an appellation of origin or in a
brand name for wines made from grapes grown within the Santa Ynez
Valley or Central Coast viticultural areas will not be affected by the
establishment of this new viticultural area. The establishment of the
Ballard Canyon viticultural area will allow vintners to use ``Ballard
Canyon,'' ``Santa Ynez Valley,'' and ``Central Coast'' as appellations
of origin for wines made from grapes grown within the Ballard Canyon
viticultural area if the wines meet the eligibility requirements for
the appellation.
For a wine to be labeled with a viticultural area name or with a
brand name that includes a viticultural area 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 a viticultural area 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
viticultural area 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 a
viticultural area 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.
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 a
viticultural area name would be the result of a proprietor's efforts
and consumer
[[Page 60695]]
acceptance of wines from that area. Therefore, no regulatory
flexibility analysis is required.
Executive Order 12866
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
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. 9.230 to read as follows:
Sec. 9.230 Ballard Canyon.
(a) Name. The name of the viticultural area described in this
section is ``Ballard Canyon''. For purposes of part 4 of this chapter,
``Ballard Canyon'' is a term of viticultural significance.
(b) Approved maps. The three United States Geological Survey (USGS)
1:24,000 scale topographic maps used to determine the boundary of the
Ballard Canyon viticultural area are titled:
(1) Los Olivos, CA, 1995;
(2) Zaca Creek, Calif., 1959; and
(3) Solvang, CA, 1995.
(c) Boundary. The Ballard Canyon viticultural area is located in
Santa Barbara County, California. The boundary of the Ballard Canyon
viticultural area is as described below:
(1) The beginning point is on the Los Olivos map at the
intersection of State Route 154 and Foxen Canyon Road, section 23, T7N/
R31W.
(2) From the beginning point, proceed southwesterly in a straight
line approximately 0.3 mile, crossing onto the Zaca Creek map, to the
intersection of Ballard Canyon Road and an unnamed, unimproved road
known locally as Los Olivos Meadows Drive, T7N/R31W; then
(3) Proceed south-southeasterly in a straight line approximately 1
mile, crossing onto the Los Olivos map, to a marked, unnamed large
structure located within a circular-shaped 920-foot contour line in the
southwest corner of section 26, T7N/R31W; then
(4) Proceed south-southwesterly in a straight line approximately
1.25 miles, crossing onto the Zaca Creek map, to the marked ``Ball''
801-foot elevation control point, T6N/R31W; then
(5) Proceed south-southwesterly in a straight line approximately
1.45 miles, crossing onto the Solvang map, to a marked, unnamed 775-
foot peak, T6N/R31W; then
(6) Proceed south-southwesterly in a straight line approximately
0.55 mile to a marked communication tower located within the 760-foot
contour line, T6N/R31W; then
(7) Proceed west-southwesterly in a straight line approximately
0.25 mile to the intersection of Chalk Hill Road and an unnamed, light-
duty road known locally as Mesa Vista Lane, T6N/R31W; then
(8) Proceed west-southwesterly in a straight line approximately 0.6
mile to the southern-most terminus of a marked, unnamed stream known
locally as Ballard Creek, T6N/R31W; then
(9) Proceed northerly (upstream) along Ballard Creek approximately
0.35 mile to the creek's intersection with the 400-foot contour line,
T6N/R31W; then
(10) Proceed southerly and then northwesterly along the 400-foot
contour line approximately 1.5 miles, to the contour line's first
intersection with Ballard Canyon Road, T6N/R31W; then
(11) Proceed north-northeasterly in a straight line approximately
1.7 miles, crossing onto the Zaca Creek map, to the western-most
intersection of the 800-foot contour line and the T6N/T7N boundary line
(approximately 0.9 mile east of U.S Highway 101); then
(12) Proceed west along the T6N/T7N boundary line approximately 0.4
mile to the boundary line's third intersection with the 600-foot
contour line (approximately 0.5 mile east of U.S. Highway 101); then
(13) Proceed northerly along the meandering 600-foot elevation
contour line to the contour line's intersection with Zaca Creek, T7N/
R31W; then
(14) Proceed northeasterly in a straight line for approximately 1.2
miles to the western-most intersection of the southern boundary of the
Corral de Quati Land Grant and the 1,000-foot contour line
(approximately 0.4 mile east of U.S. Highway 101), T7N/R31W; then
(15) Proceed easterly along the meandering 1,000-foot contour line
approximately 1.5 miles to the contour line's third intersection with
the southern boundary of the Corral de Quati Land Grant (approximately
0.1 mile west of State Route 154), section 22, T7N/R31W; then
(16) Proceed southeasterly in a straight line approximately 0.8
mile, crossing onto the Los Olivos map, returning to the beginning
point.
Signed: August 6, 2013.
Mary G. Ryan,
Acting Administrator.
Approved: September 25, 2013.
Timothy E. Skud,
Deputy Assistant Secretary, (Tax, Trade, and Tariff Policy).
[FR Doc. 2013-23944 Filed 10-1-13; 8:45 am]
BILLING CODE 4810-31-P