[Federal Register Volume 79, Number 138 (Friday, July 18, 2014)]
[Rules and Regulations]
[Pages 41894-41897]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-16921]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade Bureau
27 CFR Part 9
[Docket No. TTB-2013-0007; T.D. TTB-121; Ref: Notice No. 138]
RIN 1513-AC01
Establishment of the Malibu Coast 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 ``Malibu Coast'' viticultural area, which covers approximately
44,590 acres in portions of Los Angeles County and Ventura County,
California. The viticultural area includes the established Saddle Rock-
Malibu and Malibu-Newton Canyon viticultural areas. 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 August 18, 2014.
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
December 10, 2013, 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) authorizes 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 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 its
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
[[Page 41895]]
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
the standards for petitions for the establishment 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.
Malibu Coast Petition
TTB received a petition from Ralph Jens Carter on behalf of the
vintners and grape growers in the Malibu area of California, proposing
the establishment of the ``Malibu Coast'' AVA. The proposed AVA is
bordered by the city of Los Angeles to the east, the cities of Oxnard
and Camarillo to the west, and the communities of Thousand Oaks, Conejo
Valley, Calabasas, and Greenwich Village to the north. The proposed AVA
contains approximately 44,590 acres of privately owned land within the
rugged terrain of the Santa Monica Mountains National Recreation Area.
Within the proposed AVA are 52 commercially producing vineyards
covering approximately 198 acres. The steep mountains, valleys, and
canyons of the proposed AVA make grape growing difficult and contribute
to the small size of the individual vineyards.
The proposed Malibu Coast AVA is located in portions of Ventura
County and Los Angeles County, California. The proposed AVA is not
located within any established AVA. However, the established Malibu-
Newton Canyon (27 CFR 9.152) and Saddle Rock-Malibu (27 CFR 9.203) AVAs
are located within the boundaries of the proposed Malibu Coast AVA.
Notice of Proposed Rulemaking and Comments Received
TTB published Notice No. 138 in the Federal Register on July 8,
2013 (78 FR 40644), proposing to establish the Malibu Coast AVA. In the
document, TTB summarized the evidence from the petition regarding the
name, boundary, and distinguishing features for the proposed AVA. The
distinguishing features of the proposed AVA include topography, soils,
and climate. The document also compared the distinguishing features of
the proposed AVA to the surrounding areas, as well as a comparison of
the proposed AVA to the established Malibu-Newton Canyon and Saddle
Rock-Malibu AVAs. For a description of the evidence relating to the
name, boundary, and distinguishing features of the proposed AVA, as
well as a comparison of the distinguishing features of the proposed AVA
to the surrounding areas and the established Malibu-Newton Canyon and
Malibu-Saddle Rock AVAs, see Notice No. 138.
In Notice No. 138, TTB solicited comments on the accuracy of the
name, boundary, climatic, and other required information submitted in
support of the petition. In addition, TTB solicited comments on whether
the geographic features of the established Saddle Rock-Malibu and
Malibu-Newton Canyon AVAs are so distinguishable from the proposed
Malibu Coast AVA that one or both of the established AVAs should not be
part of the proposed AVA. The comment period closed on September 6,
2013.
In response to Notice No. 138, TTB received a total of 23 comments,
all of which supported the establishment of the Malibu Coast AVA.
Commenters included vineyard owners, vintners, local residents, and the
editorial director of a wine and food blog. TTB received no comments
opposing the Malibu Coast AVA, as proposed. TTB also did not receive
any comments in response to its question of whether the established
Saddle Rock-Malibu and Malibu-Newton Canyon AVAs are so distinguishable
from the proposed AVA that one or both of the established AVAs should
not be part of the proposed Malibu Coast AVA.
TTB Determination
After careful review of the petition and the comments received in
response to Notice No. 138, TTB finds that the evidence provided by the
petitioner supports the establishment of the Malibu Coast AVA.
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 ``Malibu Coast'' AVA in portions of Los Angeles County
and Ventura County, California, effective 30 days from the publication
date of this document.
TTB has also determined that the established Saddle Rock-Malibu and
Malibu-Newton Canyon AVAs will be part of the Malibu Coast AVA because
all three AVAs share similar characteristics, including high
elevations, warm temperatures, marine fog, and well-drained soils that
contain volcanic material. However, both the Saddle Rock-Malibu and
Malibu-Newton Canyon AVAs have unique features that distinguish them
from the larger surrounding Malibu Coast AVA. The two smaller AVAs are
located in valleys set within the larger mountain range that comprises
the Malibu Coast AVA and are somewhat sheltered from the marine fog by
the high valley rims. As a result, temperatures within the two smaller
AVAs are somewhat warmer than those found in the less-sheltered areas
of the Malibu Coast AVA.
Boundary Description
See the narrative description of the boundary of the 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. With the establishment of this AVA, its name, ``Malibu
Coast,'' 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. Once this final rule
becomes effective, wine bottlers using the name ``Malibu Coast'' 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.
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
[[Page 41896]]
must meet the other conditions listed in Sec. 4.25(e)(3) of the TTB
regulations (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 Sec. 4.39(i)(2) of the TTB regulations (27 CFR 4.39(i)(2))
for details.
The approval of the proposed Malibu Coast AVA will not affect any
existing AVA, and any bottlers using ``Saddle Rock-Malibu'' or
``Malibu-Newton Canyon'' as an appellation of origin or in a brand name
for wines made from grapes grown within the Saddle Rock-Malibu or
Malibu-Newton Canyon AVAs will not be affected by the establishment of
this new AVA. The establishment of the Malibu Coast AVA will allow
vintners to use ``Malibu Coast'' or ``Saddle Rock-Malibu'' as
appellations of origin for wines made primarily from grapes grown
within the Saddle Rock-Malibu AVA, if the wines meet the eligibility
requirements for the Saddle Rock-Malibu appellation. Similarly,
vintners will be allowed to use ``Malibu Coast'' or ``Malibu-Newton
Canyon'' as appellations of origin for wines made primarily from grapes
grown within the Malibu-Newton Canyon AVA, if the wines meet the
eligibility requirements for the Malibu-Newton Canyon appellation.
Finally, vintners may use both ``Malibu Coast'' and ``Saddle Rock-
Malibu'' or both ``Malibu Coast'' and ``Malibu-Newton Canyon'' on the
same label if the wine meets the eligibility requirements to use either
``Saddle-Rock Malibu'' or ``Malibu-Newton Canyon,'' as appropriate, as
an appellation of origin. See Sec. 4.25(e)(4) of the TTB regulations
(27 CFR 4.25(e)(4)) 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 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 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. 9.235 to read as follows:
Sec. 9.235 Malibu Coast.
(a) Name. The name of the viticultural area described in this
section is ``Malibu Coast.'' For purposes of part 4 of this chapter,
``Malibu Coast'' is a term of viticultural significance.
(b) Approved maps. The 10 United States Geological Survey (USGS)
1:24,000 scale topographic maps used to determine the boundary of the
Malibu Coast viticultural area are titled:
(1) Canoga Park, Calif., 1953; photorevised 1967;
(2) Topanga, CA, 1991;
(3) Malibu Beach, CA, 1995;
(4) Point Dume, CA, 1995;
(5) Triunfo Pass, CA, 1994;
(6) Point Mugu, Calif., 1949; photorevised 1967; photoinspected
1974;
(7) Carmarillo, Calif., 1950; photorevised 1967;
(8) Newbury Park, Calif., 1950; photorevised 1967;
(9) Thousand Oaks, Calif., 1950; photorevised 1981; and
(10) Calabasas, Calif., 1952; photorevised 1967.
(c) Boundary. The Malibu Coast viticultural area is located in
portions of Los Angeles County and Ventura County, in California. The
boundary of the Malibu Coast viticultural area is as described below:
(1) The beginning point is on the Canoga Park map beside Mulholland
Drive at the 1,126-foot benchmark (BM 1126), located on the marked Los
Angeles city boundary line and the northern boundary line of section
24, T1N/R17W. From the beginning point, proceed east-southeasterly
along the Los Angeles city boundary line approximately 3.25 miles to
the marked 1,718-foot elevation point; then
(2) Proceed south-southwesterly along the Los Angeles city boundary
line approximately 4.35 miles, crossing onto the Topanga map, to the
northeast corner of section 19, T1S/R16W; then
(3) Proceed east-southeasterly along the Los Angeles city boundary
line approximately 1.7 miles to the point east of Topanga Canyon where
the city boundary line turns south, and then continue southerly along
the city boundary line approximately 1.9 miles to the boundary line's
intersection with State Route 1 (the Pacific Coast Highway); then
(4) Proceed westerly on State Route 1, crossing onto the Malibu
Beach map and then the Point Dume map, to the road's intersection with
the unnamed intermittent creek located within Walnut Canyon (near the
Zuma Fire Station); then
(5) Proceed southeasterly (downstream) along the unnamed
intermittent creek located within Walnut Canyon to the Pacific Ocean
shoreline; then
(6) Proceed southwesterly along the Pacific Ocean shoreline
approximately 1.5 miles to Point Dume and then continue northwesterly
along the Pacific Ocean shoreline approximately 1.3 miles to the mouth
of an unnamed intermittent stream; then
(7) Proceed northeasterly along the unnamed intermittent stream
(upstream) approximately 0.35 mile to the stream's intersection with
State Route 1 (at BM 30); then
(8) Proceed westerly on State Route 1 approximately 17.4 miles,
crossing onto the Triunfo Pass map and then the Point Mugu map, to the
road's intersection with an unnamed light-duty road known locally as
Calleguas Creek Road; then
(9) Proceed north-northeasterly approximately 1.2 miles on
Calleguas Creek Road, crossing onto the Camarillo map, to the road's
intersection with an unnamed, unimproved road known locally as Caryl
Drive; then
(10) Encircle an unnamed 350-foot hill by proceeding westerly on
Caryl Drive approximately 0.2 mile to the road's intersection with an
unnamed, unimproved road, then continuing on that unnamed, unimproved
road around the hill in a clock-wise direction for
[[Page 41897]]
approximately 0.8 mile until the road intersects again with Caryl
Drive; then
(11) Proceed easterly on Caryl Drive approximately 0.55 mile to the
road's intersection with an unnamed, unimproved road at Broome Ranch;
then
(12) Proceed easterly on the unnamed, unimproved road approximately
0.2 mile to the road's intersection with the 80-foot elevation line;
then
(13) Proceed initially northeasterly along the meandering 80-foot
elevation line, and then continue to follow the meandering 80-foot
elevation line westerly, then northeasterly to its intersection with
West Potrero Road (near Camarillo State Hospital, now the site of
California State University Channel Islands); then
(14) Proceed easterly on West Potrero Road approximately 0.5 mile
to the road's third intersection with the 200-foot elevation; then
(15) Proceed northerly along the 200-foot elevation line
approximately 0.75 mile, crossing over an unnamed intermittent creek in
Long Grade Canyon, to the elevation line's intersection with a second
unnamed intermittent stream; then
(16) Proceed westerly (downstream) along the unnamed intermittent
stream approximately 0.75 mile to the stream's intersection with an
unnamed medium-duty road known locally as Camarillo Street; then
(17) Proceed northerly on Camarillo Street approximately 0.7 mile
to the street's intersection with an unnamed light-duty road at the
south-bank levee for Calleguas Creek; then
(18) Proceed easterly on the unnamed light-duty road approximately
0.9 mile to the road's intersection with the 100-foot elevation line;
then
(19) Proceed initially westerly and then continue easterly and then
northerly along the meandering 100-foot elevation line, crossing back
and forth between the Camarillo map and the Newbury Park map, to the
100-foot elevation line's intersection with the T1N/T2N boundary line
near Conejo Creek on the Newbury Park map; then
(20) Proceed east along the T1N/T2N boundary line approximately 0.7
mile to the line's intersection with U.S. Highway 101 (Ventura
Boulevard); then
(21) Proceed easterly on U.S. Highway 101 approximately 1.8 miles
to the highway's intersection with Conejo Road (known locally as Old
Conejo Road); then
(22) Proceed southerly and then easterly on Conejo Road
approximately 0.75 mile to the road's intersection with Borchard Road
(also known locally as N. Reino Road); then
(23) Proceed southerly on Borchard Road (also known locally as N.
Reino Drive) approximately 0.9 mile to the point where Borchard Road
(N. Reino Road) turns eastward, and then continue easterly on Borchard
Road approximately 1.75 miles to Borchard Road's intersection with U.S.
Highway 101 (Ventura Boulevard); then
(24) Proceed easterly on U.S. Highway 101 (Ventura Boulevard/
Freeway) approximately 5 miles, crossing onto the Thousand Oaks map, to
the highway's sixth and last intersection with the 920-foot elevation
line in section 14, T1N/R19W (approximately 0.2 mile west of the
intersection of U.S. Highway 101 and an unnamed road known locally as
Hampshire Road); then
(25) Proceed southerly and then southwesterly along the meandering
920-foot elevation line to its intersection with an unnamed medium-duty
road known locally as E Potrero Road, section 27, T1N/R19W; then
(26) Proceed easterly on E. Potrero Road approximately 0.55 mile to
its intersection with an unnamed heavy-duty road known locally as
Westlake Boulevard, section 26, T1N/R19W; then
(27) Proceed northeasterly on Westlake Boulevard approximately 0.4
mile to the road's second intersection with the 900-foot elevation
line, section 26, T1N/R19W; then
(28) Proceed easterly along the 900-foot elevation line, crossing
the Los Angeles-Ventura County line, to the elevation line's
intersection with the boundary line of the Las Virgenes Land Grant
(concurrent at this point with the northern boundary line of section
31, T1N/R18W); then
(29) Proceed northeasterly along the Las Virgenes Land Grant
boundary line approximately 0.3 mile, crossing Triunfo Canyon, to the
boundary line's intersection with the 1,000-foot elevation line; then
(30) Proceed westerly and then east-northeasterly along the 1,000-
foot elevation line to the line's intersection with the Las Virgenes
Land Grant boundary line, and then continue northeasterly along the Las
Virgenes Land Grant boundary line approximately 0.2 mile to the
boundary line's intersection with U.S. Highway 101 (Ventura Freeway);
then
(31) Proceed easterly on U.S. Highway 101 (Ventura Freeway)
approximately 5.7 miles, crossing onto the Calabasas map, to the
highway's intersection with the northern boundary line of section 30,
T1N/R17, near Brents Junction; then
(32) Proceed west along the northern boundary line of section 30,
T1N/R17W approximately 0.5 mile to its intersection with the 1,000-foot
elevation line; then
(33) Proceed northerly, southerly, and easterly along the
meandering 1,000-foot elevation line, encompassing portions of Las
Virgenes, East Las Virgenes, and Gates Canyons, to the elevation line's
intersection with the western boundary line of section 21, T1N/R17W;
then
(34) Proceed north along the western boundary lines of sections 21
and 16, T1N/R17W, to the section line's intersection with the Los
Angeles-Ventura County line; then
(35) Proceed east along the Los Angeles-Ventura County line
approximately 0.45 mile, and then proceed north along the county line
approximately 0.1 mile to the county line's intersection with Long
Valley Road; then
(36) Proceed east-southeasterly on Long Valley Road approximately
1.7 miles to the road's intersection with the Los Angeles city boundary
line (approximately 0.1 mile north of U.S. Highway 101 (Ventura
Freeway)), section 23, T1N/R17W; then
(37) Proceed south along the Los Angeles city boundary line
approximately 0.2 mile, then east-northeasterly approximately 0.2 mile,
and then southeasterly approximately 0.9 mile to the city boundary
line's intersection with the northern boundary line of section 26, T1N/
R17W; then
(38) Proceed east-northeasterly along the Los Angeles city boundary
line approximately 0.3 mile, and then continue easterly along the city
boundary line approximately 0.5 mile, crossing onto the Canoga Park
map, and returning to the beginning point.
Signed: April 15, 2014.
John J. Manfreda,
Administrator.
Approved: May 14, 2014.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and Tariff Policy).
[FR Doc. 2014-16921 Filed 7-17-14; 8:45 am]
BILLING CODE 4810-31-P