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Rules and Regulations
Federal Register Vol. 86, No. 162
Wednesday, August 25, 2021

This section of the FEDERAL REGISTER
contains regulatory documents having general applicability and legal effect, most of which are keyed to and codified in the Code of Federal Regulations, which is published under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.

DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade Bureau 27 CFR Part 9
Docket No. TTB20200007; T.D. TTB172;
Ref: Notice No. 192
RIN 1513AC55

Modification of the Boundaries of the Santa Lucia Highlands and Arroyo Seco Viticultural Areas Alcohol and Tobacco Tax and Trade Bureau, Treasury.
ACTION: Final rule; Treasury decision.
AGENCY:

The Alcohol and Tobacco Tax and Trade Bureau TTB is modifying the boundaries of the Santa Lucia Highlands viticultural area and the adjacent Arroyo Seco viticultural area in Monterey County, California. The boundary modifications include two separate actionsremoving approximately 376 acres from the Santa Lucia Highlands viticultural area, and removing 148 acres from the Arroyo Seco viticultural area and placing them entirely within the Santa Lucia Highlands viticultural area. The Santa Lucia Highlands and Arroyo Seco viticultural areas and the modification areas are located entirely within the existing Monterey and Central Coast 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 September 24, 2021.
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 2024531039, ext. 175.
SUPPLEMENTARY INFORMATION:

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Background on Viticultural Areas
Requirements
TTB Authority Section 105e of the Federal Alcohol Administration Act FAA Act, 27
U.S.C. 205e, 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 1111d of the Homeland Security Act of 2002, codified at 6 U.S.C. 531d. The Secretary has delegated the functions and duties in the administration and enforcement of these provisions to the TTB Administrator through Treasury Order 12001, dated December 10, 2013
superseding Treasury Order 12001, dated January 24, 2003.
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 to TTB of petitions for the establishment or modification of American viticultural areas AVAs and lists the approved AVAs.

Section 4.25e2 of the TTB
regulations 27 CFR 4.25e2 outlines the procedure for proposing an AVA
and provides that any interested party may petition TTB to establish a grapegrowing 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 modify an AVA must include the following:
In the case of an expansion in size of an AVA, evidence that the proposed expansion area is nationally or locally known by the name of the AVA into which it would be placed;
In the case of a reduction in size of an AVA, an explanation of the extent to which the current AVA name does not apply to the excluded area;
An explanation of the basis for defining the boundary of the proposed areas to be realigned, including an explanation of how the boundary of the existing AVA was incorrectly or incompletely defined or is no longer accurate due to new evidence or changed circumstances;
In the case of an expansion of an 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 expansion area similar to the AVA into which it would be placed and distinguish it from adjacent areas outside the established AVA;
In the case of a reduction of an AVA, a narrative description of the features of the proposed AVA affecting viticulture, such as climate, geology, soils, physical features, and elevation, that differentiate the proposed reduction area from the established AVA and demonstrate a greater similarity to the features of adjacent areas outside the established AVA;
The appropriate United States Geological Survey USGS maps showing the location of the proposed AVA boundary modifications, with the proposed boundary modifications clearly drawn thereon; and A detailed narrative description of the proposed AVA boundary modifications based on USGS map markings.

Definition Section 4.25e1i of the TTB
regulations 27 CFR 4.25e1i 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 wines 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.

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