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Federal Register / Vol. 86, No. 162 / Wednesday, August 25, 2021 / Rules and Regulations
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made from grapes grown within the reduction area or the proposed realignment area may continue to use those appellations of origin if the wines meet the eligibility requirements for the appellation.
The modification of the northern Santa Lucia Highlands AVA boundary means that wines produced mainly from grapes grown in the reduction area may no longer be labeled with Santa Lucia Highlands as an appellation of origin.
However, TTB does not believe any label holders will be affected by this boundary modification because the petition states that no vineyards exist within the reduction area.
The realignment of the shared Santa Lucia HighlandsArroyo Seco AVA
boundary allows vintners to use Santa Lucia Highlands, Monterey, and Central Coast as appellations of origin for wines made primarily from grapes grown within the realignment area if the wines meet the eligibility requirements for these appellations. For wines whose eligibility for the Arroyo Seco AVA
designation depends on the use of grapes grown in the realignment area, a label containing the words Arroyo Seco may be used on wine bottled within 2 years from the effective date of the final rule, provided that such label was approved before the effective date of this final rule and that the wine conforms to the standards for use of the label set forth in 27 CFR 4.25 or 4.39i in effect prior to this final rule. At the end of this 2-year transition period, if the wine is produced primarily from grapes grown in the realignment area, then a label containing the words Arroyo Seco in the brand name or as an appellation of origin would not be permitted on the label. This transition period is described in the regulatory text of this final rule. TTB believes that the 2-year transition period should provide affected label holders with adequate time to use up any old labels.
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 proprietors 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
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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 9AMERICAN VITICULTURAL
AREAS
1. The authority citation for part 9
continues to read as follows:

Authority: 27 U.S.C. 205.

Subpart CApproved American Viticultural Areas 2. Section 9.59 is amended by:
a. Removing paragraphs c12 and 13;
b. Redesignating paragraphs c14
through 21 as paragraphs c17
through 24; and c. Adding new paragraphs c12
through 16 and d.
The additions read as follows:

9.59

Arroyo Seco.

c
12 Then south following Paraiso Road to its intersection with an unnamed, light-duty road north of Clark Road in Section 20, T18S/R6E.
13 Then east-southeast along the unnamed road for 0.3 mile to its intersection with an intermittent stream.
14 Then southwesterly along the intermittent stream for 0.2 mile to its intersection with the western boundary of Section 21, T18S/R6E.
15 Then south-southwest in a straight line for approximately 0.3 mile to the intersection of Clark Road and the southern boundary of Section 21, T18S/
R6E.
16 Then west-southwest along Clark Road for 0.2 mile to its intersection with an unnamed, light-duty road.

d Transition period. A label containing the words Arroyo Seco in the brand name or as an appellation of origin approved prior to September 24, 2021 may be used on wine bottled before August 25, 2023, if the wine conforms to the standards for use of the label set forth in 4.25 or 4.39i of this chapter in effect prior to September 24, 2021.

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3. Section 9.139 is amended by:
a. Redesignating paragraphs c10
through 22 as paragraphs c18
through 30;
b. Revising paragraphs c1 through 9; and c. Adding new paragraphs c10
through 17.
The revisions and additions read as follows:

9.139

Santa Lucia Highlands.

c
1 From the beginning point, the boundary follows Limekiln Creek for approximately 1.2 miles northeast to the 120-foot elevation contour.
2 Then following the 120-foot elevation contour in a general southeasterly direction for approximately 0.9 mile to where it intersects with River Road.
3 Then following River Road in a southeasterly direction for 0.3 mile to its intersection with an unimproved road near the marked 130-foot elevation.
4 Then follow a straight line southeast to the terminus of the 110-foot elevation contour.
5 Then follow a straight line southeast 0.9 mile, crossing onto the Gonzales map, to the Salinas River.
6 Then follow the Salinas River in a south-southeast direction 0.7 mile, crossing onto the Palo Escrito map, to the intersection of the Salinas River and the 120-foot elevation contour.
7 Then follow the 120-foot contour south for 1 mile, then southeast to its intersection with River Road.
8 Then follow River Road east for 0.1 mile to its intersection with an unnamed, light-duty road.
9 Then follow the unnamed road southeast for 0.2 mile to its intersection with the 160-foot elevation contour.
10 Then follow the 160-foot elevation contour southeasterly for approximately 5.9 miles to its intersection with River Road.
11 Then follow River Road southeasterly for approximately 1 mile to the intersection of River, Fort Romie, and Foothill Roads.
12 Then following Foothill Road in a southeasterly direction for approximately 4 miles to the junction of Foothill Road and Paraiso Roads on the Soledad map.
13 Then follow Paraiso Road in a southerly direction, crossing onto the Paraiso Springs map, to its intersection with an unnamed, light-duty road north of Clark Road in Section 20, T18S/R6E.
14 Then follow the unnamed road east-southeast for 0.3 mile to its intersection with an intermittent stream.
15 Then follow the intermittent stream in a southwesterly direction for
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