Expansion of the Paso Robles Viticultural Area (2008R-073P), 3425-3429 [E9-994]

Download as PDF Federal Register / Vol. 74, No. 12 / Wednesday, January 21, 2009 / Rules and Regulations approximately 0.2 mile, returning to the point of beginning. Signed: December 5, 2008. John J. Manfreda, Administrator. Approved: December 19, 2008. Timothy E. Skud, Deputy Assistant Secretary (Tax, Trade, and Tariff Policy). [FR Doc. E9–990 Filed 1–16–09; 8:45 am] BILLING CODE 4810–31–P DEPARTMENT OF THE TREASURY Alcohol and Tobacco Tax and Trade Bureau 27 CFR Part 9 [Docket No. TTB–2008–0005; T.D. TTB–72; Re: Notice No. 85] RIN 1513–AB47 Expansion of the Paso Robles Viticultural Area (2008R–073P) AGENCY: Alcohol and Tobacco Tax and Trade Bureau, Treasury. ACTION: Final rule; Treasury decision. SUMMARY: This Treasury decision expands by 2,635 acres the existing 609,673-acre Paso Robles American viticultural area in San Luis Obispo County, California. The expanded Paso Robles viticultural area lies entirely within San Luis Obispo County and the multicounty Central Coast viticultural area. We designate 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: Effective Dates: February 20, 2009. FOR FURTHER INFORMATION CONTACT: N.A. Sutton, Regulations and Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, 925 Lakeville St., No. 158, Petaluma, CA 94952; phone 415– 271–1254. SUPPLEMENTARY INFORMATION: jlentini on PROD1PC65 with RULES 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 requires that these regulations, 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 VerDate Nov<24>2008 16:09 Jan 16, 2009 Jkt 217001 and quality of the product. The Alcohol and Tobacco Tax and Trade Bureau (TTB) administers the regulations promulgated under the FAA Act. 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) contains the list of approved 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 distinguishable by geographical features, the boundaries of which have been recognized and defined 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 geographical 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 grapegrowing region as a viticultural area. Petitioners may use the same procedure to request changes involving existing viticultural areas. Section 9.3(b) of the TTB regulations requires the petition to include— • Evidence that the proposed viticultural area is locally and/or nationally known by the name specified in the petition; • Historical or current evidence that supports setting the boundary of the proposed viticultural area as the petition specifies; • Evidence relating to the geographical features, such as climate, soils, elevation, and physical features that distinguish the proposed viticultural area from surrounding areas; • A description of the specific boundary of the proposed viticultural area, based on features found on the United States Geological Survey (USGS) maps; and • A copy of the appropriate USGS map(s) with the proposed viticultural area’s boundary prominently marked. PO 00000 Frm 00031 Fmt 4700 Sfmt 4700 3425 Paso Robles Expansion Petition Background Previous Petitions On October 4, 1983, the Bureau of Alcohol, Tobacco and Firearms (ATF) published a final rule, T.D. ATF–148 (48 FR 45239), to establish the ‘‘Paso Robles’’ American viticultural area (AVA) in northern San Luis Obispo County, California (see 27 CFR 9.84). As established, the Paso Robles AVA was entirely within the Central Coast AVA (27 CFR 9.75) and, to the west, it bordered the much smaller York Mountain AVA (27 CFR 9.80). In 1983, the Paso Robles AVA contained approximately 5,000 acres of vineyards. As established, the Paso Robles AVA was defined by the San Luis ObispoMonterey county line in the north, the Cholame Hills to the east, and the Santa Lucia Mountains to the south and west. According to T.D. ATF–148, the Santa Lucia Mountains largely protect the Paso Robles AVA from the intrusion of marine air and fog from the Pacific Ocean, giving the Paso Robles AVA a drier and warmer summertime climate than regions to the west and south. However, in T.D. ATF–216 establishing the Central Coast AVA, 50 FR 43128 (October 24, 1985), ATF recognized that there was, to a lesser degree, marine influence on the climate in Paso Robles. The Paso Robles AVA also is characterized by day to night temperature changes of 40 to 50 degrees, annual rainfall of 10 to 25 inches, 600 to 1,000 foot elevations, and welldrained, alluvial soils in terrace deposits. Lacking a feasible way to use physical features, such as ridge lines, to define the boundary of the Paso Robles AVA, the original petitioner largely used a series of township and range lines and point-to-point lines to delineate the AVA’s boundary. The southernmost portion of the Paso Robles AVA was delineated to the south by the east-west T29S/T30S township boundary line and to the east by the north-south R13E/ R14E range line. On June 13, 1996, ATF published a final rule, T.D. ATF–377 (61 FR 29952), expanding the Paso Robles AVA along a portion of its western boundary. This expansion added approximately 52,618 acres of land similar to that contained in the original AVA. The expansion added to the AVA seven vineyards containing 235 acres of grapes planted after the 1983 establishment of the Paso Robles AVA. The Paso Robles AVA, as expanded, remained entirely within San Luis Obispo County and the Central Coast AVA, and this westerly expansion E:\FR\FM\21JAR1.SGM 21JAR1 3426 Federal Register / Vol. 74, No. 12 / Wednesday, January 21, 2009 / Rules and Regulations did not extend into the York Mountain AVA or change the AVA’s original southern boundary. jlentini on PROD1PC65 with RULES Current Southern Expansion Petition In 2007, the Paso Robles AVA Committee (PRAVAC) submitted a petition to TTB requesting a 2,635-acre expansion of the Paso Robles AVA. The petition states that the PRAVAC represents a broad cross section of the Paso Robles wine industry and notes that its 59 grape grower and winery members collectively own or manage over 10,000 acres of vineyards within the Paso Robles AVA. The proposed expansion area is immediately south of the current southernmost boundary of the Paso Robles AVA, which boundary is delineated by the T29S/T30S township line, as shown on the 1:250,000-scale USGS San Luis Obispo map used to define the AVA’s boundary. As noted in the petition, the Paso Robles AVA’s current southernmost boundary line bisects the southern portion of the Santa Margarita Valley, leaving a significant portion of the valley’s southern end outside the AVA boundary as currently defined. The proposed expansion would, therefore, bring most of the remainder of the Santa Margarita Valley within the AVA, as shown on the 1:24,000 USGS Lopez Mountain map submitted with the petition. (TTB notes that, while not used to formally define the AVA’s boundary in the proposed regulatory text, the Lopez Mountain map provides significantly more geographical detail regarding the expansion area due to its smaller scale.) The proposed southern expansion also lies totally within San Luis Obispo County and the existing Central Coast AVA, and it would not overlap or otherwise affect any other established or currently proposed new AVA. According to the petition, the distinguishing features of the proposed expansion area, including its geological history, geomorphology, soils, topography, and climate, are similar to those found in the southern region of the original Paso Robles AVA. Name Evidence The petition states that the ‘‘Paso Robles’’ geographical name applies to the proposed southern expansion of the Paso Robles AVA due to the historic, geographic, commercial, and cultural ties between the Santa Margarita Valley and the Paso Robles region of San Luis Obispo County. These ties resulted from the northward orientation of the valley, which is enclosed to the south and west by the Santa Lucia Mountains. Historically, travel was easier going VerDate Nov<24>2008 16:09 Jan 16, 2009 Jkt 217001 northward through the valley to the city of Paso Robles than it was going southward over the mountains to the city of San Luis Obispo. The petition also states that, because of the stated historic and other ties, local residents and members of the Paso Robles wine industry have assumed that the entire Santa Margarita Valley was within the original Paso Robles AVA boundary line and have referenced the area as such. According to the petition, other sources also show the entire Santa Margarita Valley as falling within the Paso Robles region. For example, the Paso Style Living real estate Web site (https://www.pasostyleliving.com/pages/ pasoarea.htm) describes the Santa Margarita area as ‘‘the Southern edge of Paso wine country.’’ A 1928 soil survey map of the Paso Robles area submitted with the petition also shows the entire Santa Margarita Land Grant as being within the Paso Robles region. In addition, the ‘‘1978 General Soil Map of the Paso Robles Area—San Luis Obispo County,’’ published by the U.S. Department of Agriculture, Soil Conservation Service, University of California Agricultural Experiment Station, includes the proposed Paso Robles AVA expansion area within the Paso Robles region of the county. Boundary Evidence The proposed triangle-shaped expansion of the Paso Robles AVA would move its southernmost point approximately 2.6 miles south to encompass most of that portion of the Santa Margarita Valley currently not included within the AVA. Also, the proposed expansion area would lengthen by the same distance the portion of the eastern boundary commonly shared by the Paso Robles and Central Coast AVAs. The petition describes the proposed expansion area as part of the ‘‘cohesive geographical unit’’ of the Santa Margarita Valley. Nestled between the Santa Lucia Range and the Salinas River, the Santa Margarita Valley lies on both sides of the existing southern boundary line of the Paso Robles AVA. The petition describes the southernmost boundary line of the original Paso Robles AVA, which boundary line follows the T29S/T30S township line and bisects the Santa Margarita Valley, as an ‘‘imaginary, indiscernible boundary in the landscape, not defined by any topographic or other environmental parameters.’’ As explained in T.D. ATF–148, the Paso Robles AVA is bounded on the west and south by the Santa Lucia Mountain range. The proposed southern expansion, the petition explains, would PO 00000 Frm 00032 Fmt 4700 Sfmt 4700 more closely align the southernmost boundary of the Paso Robles AVA with the Santa Lucia Range by encompassing most of the portion of the Santa Margarita Valley that is currently outside the AVA. The petition explains that beyond the proposed expansion area to the south is the narrowed terminus of the Santa Margarita Valley, with steep terrain on three sides and inadequate groundwater and warmth to sustain commercial viticulture. According to the petition, the viticultural history of the Santa Margarita Valley began with the arrival of Spanish missionaries, who, among other things, brought grapes and winemaking to the Paso Robles area over 200 years ago. Near present-day Santa Margarita, the missionaries built the Santa Margarita de Cortona Asistencia in 1787, which functioned as an outpost of the mission located at San Luis Obispo and which served as a chapel, farmstead, and storehouse for grain grown in the valley. See page 39 of the ‘‘History of San Luis Obispo County, California, with Illustrations and Biographical Sketches of its Prominent Men and Pioneers,’’ by Myron Angel, Thompson & West, 1883, reprinted by Howell-North Books, 1966, which was included with the petition. According to the Angel publication, in 1861 the land surrounding the Asistencia site was purchased by Mary and Martin Murphy, who also owned portions of other land grants within the Paso Robles region. Under their ownership, the petition states, the Santa Margarita area developed a strong attachment to the more commercialized Paso Robles area to its north. By 1889, the petition explains, an extension of the Southern Pacific Railroad ran south from Paso Robles along the Salinas River to the small settlement of Santa Margarita. See pages 34 and 75 of ‘‘Rails Across the Ranchos,’’ by Loren Nicholson, Valley Publishers, 1993. The USGS San Luis Obispo regional map shows the Southern Pacific Railway running south from the city of Paso Robles across the relatively flat valley to the town of Santa Margarita, where it begins a twisting climb up and over the Santa Lucia Mountains to the city of San Luis Obispo. In 2000, the petition explains, the Robert Mondavi Winery leased more than 1,000 acres in the southern Santa Margarita Valley for commercial vineyard development. This acreage is bisected by the current southernmost boundary of the Paso Robles AVA. At the time of the petition, vineyards covered 800 of the 1,000 acres, with plantings located on both sides of the E:\FR\FM\21JAR1.SGM 21JAR1 Federal Register / Vol. 74, No. 12 / Wednesday, January 21, 2009 / Rules and Regulations existing Paso Robles AVA boundary line, according to the petition. jlentini on PROD1PC65 with RULES Distinguishing Features The proposed expansion of the Paso Robles AVA relies on the Santa Margarita Valley’s uniform topography, climate, soils, geologic history, and geomorphology. These geographical features, the petition notes, are the same throughout the valley, which is currently bisected by the southernmost boundary line of the existing Paso Robles AVA. The Santa Margarita Valley, which makes up the portion of the Salinas River Valley containing Santa Margarita and Rinconada Creeks, extends south from the city of Atascadero, through the town of Santa Margarita, and continues southsoutheastward through the proposed expansion area, according to the USGS San Luis Obispo regional map and the petition. Professor Deborah L. Elliott-Fisk, Ph.D, of the University of California, Davis, an expert on the geography and terroir of California and viticultural area designations, researched and provided the data for the distinguishing features discussed in the petition. According to the petition, Dr. Elliott-Fisk also coordinated the data and analyses supplied by meteorologist Donald Schukraft, Western Weather Group, LLC, and other experts. Climate The climate of the Paso Robles AVA as a whole, according to Dr. Elliott-Fisk, has smaller monthly temperature ranges and less continental influence than the inland areas further to the east, but is less influenced by Pacific marine air and fog than the coastal regions to the west due to the blocking effect of the Santa Lucia Mountains. As part of the larger Paso Robles region, the Santa Margarita Valley has climatic conditions similar to the Paso Robles AVA, Dr. Elliott-Fisk notes, and these conditions exist on both sides of the existing southernmost boundary of the AVA, which passes from west to east through the valley. Dr. Elliott-Fisk adds that other climate similarities found within the valley on either side of the existing AVA boundary include cold air drainage, cold air ponding under temperature inversions, and similar frost patterns, especially early in the growing season. Also, annual precipitation in the valley averages 29 inches, while regions to the east are drier and the coastal mountains to the west are wetter. These climatic similarities also are evidenced by various climate classification systems. For example, the VerDate Nov<24>2008 16:09 Jan 16, 2009 Jkt 217001 petition states, the global scale climate classification system of Koppen, Geiger and Pohl (1953) labels the great majority of the Paso Robles region as a Mediterranean warm summer climate (Csb), while the region to the east has a Mediterranean hot summer climate (Csa). Dr. Elliott-Fisk states that the climate of the Santa Margarita Valley is classified as a cool region II climate of approximately 2,900 degree days under the Winkler climate classification system, which is based on the heat accumulation during the growing season. This classification is found on both sides of the existing southernmost Paso Robles AVA boundary. (As a measurement of heat accumulation during the growing season, 1 degree day accumulates for each degree Fahrenheit that a day’s mean temperature is above 50 degrees, which is the minimum temperature required for grapevine growth. In the Winkler system, climatic region I has less than 2,500 degree days per year; region II, 2,501 to 3,000; region III, 3,001 to 3,500; region IV, 3,501 to 4,000; and region V, 4,001 or more. See pages 61–64 of ‘‘General Viticulture,’’ by Albert J. Winkler, University of California Press, 1974.) Regarding the southern end of the Santa Margarita Valley that lies beyond the proposed expansion, Dr. Elliott-Fisk explains that the steep topography east, south, and west of the narrow valley floor causes increases in relief precipitation and evening settling of cold, dense air at the valley’s terminus. Local farmers, the petition explains, state that air temperatures at the far southern end of the valley are too cold to produce quality wine grapes. Geology The geological features that characterize the southern region of the Paso Robles AVA continue across the southernmost boundary line of the viticultural area and are found throughout the Santa Margarita Valley, including the proposed expansion area. Dr. Elliott-Fisk explains that the Salinas River originally formed the Santa Margarita Valley through a process of soil erosion and deposition, while the complex faulting of the Santa Lucia Range formed a graben basin that extends along the valley floor and crosses the existing Paso Robles AVA southernmost boundary line. Later, Dr. Elliott-Fisk notes, the Salinas River carved a new channel to the east through the soft Monterey Formation shales along the Rinconada Fault as the San Andreas Fault zone became more active. Rinconada Creek, a primary tributary of the Salinas River in the PO 00000 Frm 00033 Fmt 4700 Sfmt 4700 3427 Santa Margarita Valley area, then deposited a series of broad alluvial fans and terraces across the older Salinas River alluvial fill, Dr. Elliott-Fisk explains. She notes that these alluvial terraces extend north and south of the current Paso Robles AVA boundary line and exist throughout the proposed expansion area. To the east, south, and west of the proposed Paso Robles AVA expansion, Dr. Elliott-Fisk explains, the geology of the landscape is unsuitable for commercial production of wine grapes. She states that, to the east, granitic rocks on the mountainsides make the area difficult to farm, and the weathering and failure of near-surface rock make road building difficult. Also, to the south, and at the narrowed southern terminus of the Santa Margarita Valley, Franciscan conglomerate rock underlies the shallow alluvium creating an environment lacking in adequate groundwater. To the west, the landscape includes massive units of the late Cretaceous Franciscan and Great Valley formations, consisting of hard marine sandstones and conglomerates on steep mountain slopes, making the terrain unsuitable for viticulture. Soils Similar soils exist on both sides of the current Paso Robles AVA southern boundary line, according to the current USDA soil survey for the Paso Robles Area of San Luis Obispo County (Lindsey, 1978). Climate, parent material, topography, and time, Dr. Elliott-Fisk states, all contribute to the soil type similarities that extend the length of the Santa Margarita Valley. The soils of the Santa Margarita Valley, Dr. Elliott-Fisk explains, include the deep gravelly loam soils of late midQuaternary age, grading into shallower clay loam soils against bedrock on the hillsides. Also, younger alluvial deposits dominate the flood plains of the valley’s creeks. The soils and terrain to the south, east, and west of the proposed southern expansion of the Paso Robles AVA are, however, unsuitable for commercial viticulture, Dr. Elliott-Fisk explains. To the south, the soils of the valley floor include clay loams with low water permeability, high water capacity, and moderate shrink-swell potential, while the mountain slopes to the east and west have a shallow topsoil, small rooting zones for grapevines, and an erosion potential, making those areas unsuitable for viticulture. Evidence Summary The PRAVAC petition, including Dr. Elliott-Fisk’s discussion of the proposed E:\FR\FM\21JAR1.SGM 21JAR1 3428 Federal Register / Vol. 74, No. 12 / Wednesday, January 21, 2009 / Rules and Regulations jlentini on PROD1PC65 with RULES expansion area’s distinguishing features and a detailed letter from vineyard developer and manager Neil Roberts, emphasizes that similar geological, geographical, and climatic conditions extend through the Santa Margarita Valley, which encompasses a portion of the existing Paso Robles AVA as well as the proposed expansion area. The landforms, topography, and geology features that form the Santa Margarita Valley, the petition explains, are similar both north and south of the existing Paso Robles AVA southernmost boundary line. Also, the valley’s climate, as reflected by Winkler’s degree-day values, and its soil types, as documented in the 1978 USDA soil survey for the Paso Robles Area of San Luis Obispo County, show strong similarities on both sides of the current Paso Robles AVA southernmost boundary line. The petition adds that vineyards are farmed the same way north and south of the current Paso Robles AVA boundary line through the valley and that these vineyards grow the same varietals. Notice of Proposed Rulemaking and Comments Received TTB published Notice No. 85 regarding the proposed expansion of the Paso Robles viticultural area in the Federal Register (73 FR 40474) on July 15, 2008. In that notice, TTB invited comments by September 15, 2008, from all interested persons. We expressed particular interest in receiving comments concerning the similarity of the proposed expansion area to the currently existing Paso Robles viticultural area. TTB received eight comments in response to Notice No. 85. Seven of the comments supported the expansion of the Paso Robles viticultural area as proposed. One commenter, Justin Kahler, supported a southern expansion of the Paso Robles viticultural area, but disagreed with the eastern portion of the proposed new boundary line. Mr. Kahler requested that the proposed expansion of the Paso Robles viticultural area continue eastward approximately 2.5 miles generally along Las Pilitas Road, incorporating sections 6, 5, 4, and 33, Township 30 South and Range 14 East, of the Lopez Mountain and Santa Margarita Lake USGS quadrangle maps. Mr. Kahler stated in his request that the additional expansion area was entirely within the multi-county Central Coast viticultural area. Upon review of Mr. Kahler’s request for an expansion larger than originally proposed for the Paso Robles viticultural area, TTB found that the additional area that Mr. Kahler VerDate Nov<24>2008 16:09 Jan 16, 2009 Jkt 217001 proposed extends eastward beyond the Central Coast viticultural area boundary line. In contrast, the current Paso Robles viticultural area and the southern expansion area covered by the PRAVAC petition are entirely within the Central Coast viticultural area. Moreover, the eastern boundary line of the PRAVACproposed southern expansion area shares a portion of, but does not cross over, the eastern boundary line of the Central Coast viticultural area. TTB notes that in the final rule that established the Central Coast viticultural area, T.D. ATF–216, the ‘‘Geographical Features Which Affect Viticultural Features’’ section states that ‘‘the eastern boundary of the Central Coast viticultural area is drawn at the approximate inland limit of the marine influence on climate.’’ This finding regarding the Central Coast AVA is relevant because it also addressed the Paso Robles viticultural area within it. T.D. ATF–216 explains that the marine influence traveling south from Monterey Bay, through the Salinas River Valley, reaches the Paso Robles area but to a lesser degree. Thus, the Paso Robles area is still under marine influence and possesses microclimates characteristic of coastal valleys, especially in comparison to areas that are farther inland (such as the area identified by Mr. Kahler in his request to further expand the Paso Robles AVA). In his comment and request on this proposed rulemaking action, Mr. Kahler did not address the issue that his proposed further expansion area extends beyond the current boundary of the Central Coast viticultural area and outside the determined approximate inland limit of the marine influence on climate. Thus, TTB has concluded, after careful consideration, that it does not have sufficient information to establish the eastward expansion requested by Mr. Kahler in this final rule. Such expansion may be the subject of a future rulemaking action. TTB Finding After careful review of the petition and comments received, TTB finds that the evidence submitted supports the expansion of the viticultural area as proposed by the PRAVAC. Therefore, under the authority of the Federal Alcohol Administration Act and part 4 of our regulations, we amend our regulations to expand the Paso Robles viticultural area in San Luis Obispo County, California, effective 30 days from the publication date of this document. PO 00000 Frm 00034 Fmt 4700 Sfmt 4700 Boundary Description See the modified narrative boundary description reflecting the expanded viticultural area in the regulatory text amendment published at the end of this document. Maps The petitioner provided the required map pertaining to the expansion, and we list it below in the amended regulatory text. Impact on Current Wine Labels The expansion of the Paso Robles viticultural area does not affect any currently approved wine labels. The approval of this expansion may allow additional vintners to use ‘‘Paso Robles’’ as an appellation of origin on their 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 a viticultural area name or with a brand name that includes a viticultural area name or other term identified as being viticulturally significant in part 9 of the TTB regulations, at least 85 percent of the wine must be derived from grapes grown within the area represented by that name or other term, and the wine must meet the other conditions listed in 27 CFR 4.25(e)(3). Different rules apply if a wine has a brand name containing a viticultural area name or other viticulturally significant term 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 We certify that this regulation will not have a significant economic impact on a substantial number of small entities. This regulation imposes no new reporting, recordkeeping, or other administrative requirement. Any benefit derived from the use of a viticultural area name is 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 This rule is not a significant regulatory action as defined by Executive Order 12866. Therefore, it requires no regulatory assessment. Drafting Information N.A. Sutton of the Regulations and Rulings Division drafted this notice. List of Subjects in 27 CFR Part 9 Wine. E:\FR\FM\21JAR1.SGM 21JAR1 Federal Register / Vol. 74, No. 12 / Wednesday, January 21, 2009 / Rules and Regulations EQUAL EMPLOYMENT OPPORTUNITY COMMISSION For the reasons discussed in the preamble, we amend title 27 CFR, chapter 1, part 9, as follows: ■ PART 9—AMERICAN VITICULTURAL AREAS 1. The authority citation for part 9 continues to read as follows: ■ Subpart C—Approved American Viticultural Areas 2. Section 9.84 is amended by revising paragraphs (b), (c)(7), and (c)(8), redesignating paragraphs (c)(9) and (c)(10) as (c)(10) and (c)(11), and adding a new paragraph (c)(9). The revisions and addition read as follows: Paso Robles. * * * * * (b) Approved Map. The appropriate map for determining the boundary of the Paso Robles viticultural area is the United States Geological Survey 1:250,000-scale map of San Luis Obispo, California, 1956, revised 1969, shoreline revised and bathymetry added 1979. (c) Boundaries. * * * * * * * * (7) Then in an easterly direction along the T.29S. and T.30S. line for approximately 3.1 miles to its intersection with the eastern boundary line of the Los Padres National Forest; (8) Then in a southeasterly direction along the eastern boundary line of the Los Padres National Forest for approximately 4.1 miles to its intersection with the R.13E. and R.14E. line; (9) Then in a northerly direction along the R.13E. and R.14E. line for approximately 8.7 miles to its intersection with the T.28S. and T.29S. line; * * * * * jlentini on PROD1PC65 with RULES RIN 3046–AA86 Change of Address for Headquarters and Washington Field Office Dated: December 5, 2008. John J. Manfreda, Administrator. Approved: December 16, 2008. Timothy E. Skud, Deputy Assistant Secretary (Tax, Trade, and Tariff Policy). [FR Doc. E9–994 Filed 1–16–09; 8:45 am] This final rule amends existing EEOC regulations by changing two office addresses and one post office box. DATES: Effective Date: January 21, 2009. FOR FURTHER INFORMATION CONTACT: Thomas J. Schlageter, Assistant Legal Counsel, (202) 663–4668, or Erin N. Norris, Attorney, (202) 663–4876, Office of Legal Counsel, 131 M St., NE., Washington, DC 20507. Copies of this final rule are available in the following alternate formats: Large print, braille, electronic computer disk, and audiotape. Requests for this notice in an alternative formal should be made to the Publications Center at 1–800–699–3362 (voice), 1–800–800–3302 (TTY), or 703– 821–2098 (FAX—this is not a toll free number). SUPPLEMENTARY INFORMATION: In November and December of 2008, the Commission’s Headquarters relocated from 1801 L Street, NW., Washington, DC 20507 to 131 M Street, NE., Washington, DC 20507, and the Commission’s Washington Field Office relocated from 1801 L Street, NW., Suite 100, Washington, DC 20507 to 131 M Street, NE., Fourth Floor, Suite 4NW02F, Washington, DC 20507. Telephone numbers for Commission employees have not changed. In addition, the Commission’s Office of Federal Operations began using a new post office box effective December 1, 2008: P.O. Box 77960, Washington, DC 20013. The previous post office box address will remain in effect temporarily, but individuals wishing to file appeals, petitions, notice, etc. under 29 CFR Parts 1603 and 1614 with the Office of Federal Operations via mail should begin using the new post office box address now. This Final Rule modifies 29 CFR Parts 1601, 1603, 1605, 1610, 1611, 1612, 1614, 1615, 1621, and 1626 to reflect the change of address. Regulatory Procedures Executive Order 12866 This action pertains to agency organization, management or personnel matters and therefore is not a rule BILLING CODE 4810–31–P Jkt 217001 PO 00000 Frm 00035 Fmt 4700 Sfmt 4700 This regulation contains no new information collection requirements subject to review by the Office of Management and Budget under the Paperwork Reduction Act (44 U.S.C. chapter 35). Regulatory Flexibility Act SUMMARY: ■ 16:09 Jan 16, 2009 Paperwork Reduction Act AGENCY: Equal Employment Opportunity Commission. ACTION: Final rule. Authority: 27 U.S.C. 205. VerDate Nov<24>2008 within the meaning of section 3(d)(3) of Executive Order 12866. 29 CFR Parts 1601, 1603, 1605, 1610, 1611, 1612, 1614, 1615, 1621 and 1626 The Regulatory Amendment § 9.84 3429 The Commission certifies under 5 U.S.C. 605(b) that this rule will not have a significant economic impact on a substantial number of small entities because it does not affect any small business entities. The regulation affects only the Equal Employment Opportunity Commission. For this reason, a regulatory flexibility analysis is not required. Unfunded Mandates Reform Act of 1995 This final rule will not result in the expenditure by State, local, or tribal governments, in the aggregate, or by the private sector, of $100 million or more in any one year, and it will not significantly or uniquely affect small governments. Therefore, no actions were deemed necessary under the provisions of the Unfunded Mandates Reform Act of 1995. Congressional Review Act This action pertains to the Commission’s management, personnel and organization and does not substantially affect the rights or obligations of non-agency parties and, accordingly, is not a ‘‘rule’’ as that term is used by the Congressional Review Act (Subtitle E of the Small Business Regulatory Enforcement Fairness Act of 1996 (SBREFA)). Therefore, the reporting requirement of 5 U.S.C. 801 does not apply. List of Subjects in 29 CFR Parts 1601, 1603, 1605, 1610, 1611, 1612, 1614, 1615, 1621, 1626 Administrative practice and procedure, Equal Employment Opportunity. For the Commission. Dated: January 13, 2009. Naomi C. Earp, Chair. Accordingly, the Equal Employment Opportunity Commission amends 29 CFR parts 1601, 1603, 1605, 1610, 1611, 1612, 1614, 1615, 1621, and 1626 as follows: ■ E:\FR\FM\21JAR1.SGM 21JAR1

Agencies

[Federal Register Volume 74, Number 12 (Wednesday, January 21, 2009)]
[Rules and Regulations]
[Pages 3425-3429]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E9-994]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 9

[Docket No. TTB-2008-0005; T.D. TTB-72; Re: Notice No. 85]
RIN 1513-AB47


Expansion of the Paso Robles Viticultural Area (2008R-073P)

AGENCY: Alcohol and Tobacco Tax and Trade Bureau, Treasury.

ACTION: Final rule; Treasury decision.

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SUMMARY: This Treasury decision expands by 2,635 acres the existing 
609,673-acre Paso Robles American viticultural area in San Luis Obispo 
County, California. The expanded Paso Robles viticultural area lies 
entirely within San Luis Obispo County and the multicounty Central 
Coast viticultural area. We designate 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: Effective Dates: February 20, 2009.

FOR FURTHER INFORMATION CONTACT: N.A. Sutton, Regulations and Rulings 
Division, Alcohol and Tobacco Tax and Trade Bureau, 925 Lakeville St., 
No. 158, Petaluma, CA 94952; phone 415-271-1254.

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 requires that these regulations, 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 
regulations promulgated under the FAA Act.
    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) contains 
the list of approved 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 distinguishable by geographical features, the boundaries 
of which have been recognized and defined 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 geographical 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. Petitioners may use the same procedure to 
request changes involving existing viticultural areas. Section 9.3(b) 
of the TTB regulations requires the petition to include--
     Evidence that the proposed viticultural area is locally 
and/or nationally known by the name specified in the petition;
     Historical or current evidence that supports setting the 
boundary of the proposed viticultural area as the petition specifies;
     Evidence relating to the geographical features, such as 
climate, soils, elevation, and physical features that distinguish the 
proposed viticultural area from surrounding areas;
     A description of the specific boundary of the proposed 
viticultural area, based on features found on the United States 
Geological Survey (USGS) maps; and
     A copy of the appropriate USGS map(s) with the proposed 
viticultural area's boundary prominently marked.

Paso Robles Expansion Petition

Background

Previous Petitions
    On October 4, 1983, the Bureau of Alcohol, Tobacco and Firearms 
(ATF) published a final rule, T.D. ATF-148 (48 FR 45239), to establish 
the ``Paso Robles'' American viticultural area (AVA) in northern San 
Luis Obispo County, California (see 27 CFR 9.84). As established, the 
Paso Robles AVA was entirely within the Central Coast AVA (27 CFR 9.75) 
and, to the west, it bordered the much smaller York Mountain AVA (27 
CFR 9.80). In 1983, the Paso Robles AVA contained approximately 5,000 
acres of vineyards.
    As established, the Paso Robles AVA was defined by the San Luis 
Obispo-Monterey county line in the north, the Cholame Hills to the 
east, and the Santa Lucia Mountains to the south and west. According to 
T.D. ATF-148, the Santa Lucia Mountains largely protect the Paso Robles 
AVA from the intrusion of marine air and fog from the Pacific Ocean, 
giving the Paso Robles AVA a drier and warmer summertime climate than 
regions to the west and south. However, in T.D. ATF-216 establishing 
the Central Coast AVA, 50 FR 43128 (October 24, 1985), ATF recognized 
that there was, to a lesser degree, marine influence on the climate in 
Paso Robles. The Paso Robles AVA also is characterized by day to night 
temperature changes of 40 to 50 degrees, annual rainfall of 10 to 25 
inches, 600 to 1,000 foot elevations, and well-drained, alluvial soils 
in terrace deposits.
    Lacking a feasible way to use physical features, such as ridge 
lines, to define the boundary of the Paso Robles AVA, the original 
petitioner largely used a series of township and range lines and point-
to-point lines to delineate the AVA's boundary. The southernmost 
portion of the Paso Robles AVA was delineated to the south by the east-
west T29S/T30S township boundary line and to the east by the north-
south R13E/R14E range line.
    On June 13, 1996, ATF published a final rule, T.D. ATF-377 (61 FR 
29952), expanding the Paso Robles AVA along a portion of its western 
boundary. This expansion added approximately 52,618 acres of land 
similar to that contained in the original AVA. The expansion added to 
the AVA seven vineyards containing 235 acres of grapes planted after 
the 1983 establishment of the Paso Robles AVA. The Paso Robles AVA, as 
expanded, remained entirely within San Luis Obispo County and the 
Central Coast AVA, and this westerly expansion

[[Page 3426]]

did not extend into the York Mountain AVA or change the AVA's original 
southern boundary.
Current Southern Expansion Petition
    In 2007, the Paso Robles AVA Committee (PRAVAC) submitted a 
petition to TTB requesting a 2,635-acre expansion of the Paso Robles 
AVA. The petition states that the PRAVAC represents a broad cross 
section of the Paso Robles wine industry and notes that its 59 grape 
grower and winery members collectively own or manage over 10,000 acres 
of vineyards within the Paso Robles AVA.
    The proposed expansion area is immediately south of the current 
southernmost boundary of the Paso Robles AVA, which boundary is 
delineated by the T29S/T30S township line, as shown on the 1:250,000-
scale USGS San Luis Obispo map used to define the AVA's boundary. As 
noted in the petition, the Paso Robles AVA's current southernmost 
boundary line bisects the southern portion of the Santa Margarita 
Valley, leaving a significant portion of the valley's southern end 
outside the AVA boundary as currently defined. The proposed expansion 
would, therefore, bring most of the remainder of the Santa Margarita 
Valley within the AVA, as shown on the 1:24,000 USGS Lopez Mountain map 
submitted with the petition. (TTB notes that, while not used to 
formally define the AVA's boundary in the proposed regulatory text, the 
Lopez Mountain map provides significantly more geographical detail 
regarding the expansion area due to its smaller scale.)
    The proposed southern expansion also lies totally within San Luis 
Obispo County and the existing Central Coast AVA, and it would not 
overlap or otherwise affect any other established or currently proposed 
new AVA. According to the petition, the distinguishing features of the 
proposed expansion area, including its geological history, 
geomorphology, soils, topography, and climate, are similar to those 
found in the southern region of the original Paso Robles AVA.

Name Evidence

    The petition states that the ``Paso Robles'' geographical name 
applies to the proposed southern expansion of the Paso Robles AVA due 
to the historic, geographic, commercial, and cultural ties between the 
Santa Margarita Valley and the Paso Robles region of San Luis Obispo 
County. These ties resulted from the northward orientation of the 
valley, which is enclosed to the south and west by the Santa Lucia 
Mountains. Historically, travel was easier going northward through the 
valley to the city of Paso Robles than it was going southward over the 
mountains to the city of San Luis Obispo. The petition also states 
that, because of the stated historic and other ties, local residents 
and members of the Paso Robles wine industry have assumed that the 
entire Santa Margarita Valley was within the original Paso Robles AVA 
boundary line and have referenced the area as such.
    According to the petition, other sources also show the entire Santa 
Margarita Valley as falling within the Paso Robles region. For example, 
the Paso Style Living real estate Web site (https://
www.pasostyleliving.com/pages/pasoarea.htm) describes the Santa 
Margarita area as ``the Southern edge of Paso wine country.'' A 1928 
soil survey map of the Paso Robles area submitted with the petition 
also shows the entire Santa Margarita Land Grant as being within the 
Paso Robles region. In addition, the ``1978 General Soil Map of the 
Paso Robles Area--San Luis Obispo County,'' published by the U.S. 
Department of Agriculture, Soil Conservation Service, University of 
California Agricultural Experiment Station, includes the proposed Paso 
Robles AVA expansion area within the Paso Robles region of the county.

Boundary Evidence

    The proposed triangle-shaped expansion of the Paso Robles AVA would 
move its southernmost point approximately 2.6 miles south to encompass 
most of that portion of the Santa Margarita Valley currently not 
included within the AVA. Also, the proposed expansion area would 
lengthen by the same distance the portion of the eastern boundary 
commonly shared by the Paso Robles and Central Coast AVAs.
    The petition describes the proposed expansion area as part of the 
``cohesive geographical unit'' of the Santa Margarita Valley. Nestled 
between the Santa Lucia Range and the Salinas River, the Santa 
Margarita Valley lies on both sides of the existing southern boundary 
line of the Paso Robles AVA. The petition describes the southernmost 
boundary line of the original Paso Robles AVA, which boundary line 
follows the T29S/T30S township line and bisects the Santa Margarita 
Valley, as an ``imaginary, indiscernible boundary in the landscape, not 
defined by any topographic or other environmental parameters.''
    As explained in T.D. ATF-148, the Paso Robles AVA is bounded on the 
west and south by the Santa Lucia Mountain range. The proposed southern 
expansion, the petition explains, would more closely align the 
southernmost boundary of the Paso Robles AVA with the Santa Lucia Range 
by encompassing most of the portion of the Santa Margarita Valley that 
is currently outside the AVA. The petition explains that beyond the 
proposed expansion area to the south is the narrowed terminus of the 
Santa Margarita Valley, with steep terrain on three sides and 
inadequate groundwater and warmth to sustain commercial viticulture.
    According to the petition, the viticultural history of the Santa 
Margarita Valley began with the arrival of Spanish missionaries, who, 
among other things, brought grapes and winemaking to the Paso Robles 
area over 200 years ago. Near present-day Santa Margarita, the 
missionaries built the Santa Margarita de Cortona Asistencia in 1787, 
which functioned as an outpost of the mission located at San Luis 
Obispo and which served as a chapel, farmstead, and storehouse for 
grain grown in the valley. See page 39 of the ``History of San Luis 
Obispo County, California, with Illustrations and Biographical Sketches 
of its Prominent Men and Pioneers,'' by Myron Angel, Thompson & West, 
1883, reprinted by Howell-North Books, 1966, which was included with 
the petition.
    According to the Angel publication, in 1861 the land surrounding 
the Asistencia site was purchased by Mary and Martin Murphy, who also 
owned portions of other land grants within the Paso Robles region. 
Under their ownership, the petition states, the Santa Margarita area 
developed a strong attachment to the more commercialized Paso Robles 
area to its north. By 1889, the petition explains, an extension of the 
Southern Pacific Railroad ran south from Paso Robles along the Salinas 
River to the small settlement of Santa Margarita. See pages 34 and 75 
of ``Rails Across the Ranchos,'' by Loren Nicholson, Valley Publishers, 
1993. The USGS San Luis Obispo regional map shows the Southern Pacific 
Railway running south from the city of Paso Robles across the 
relatively flat valley to the town of Santa Margarita, where it begins 
a twisting climb up and over the Santa Lucia Mountains to the city of 
San Luis Obispo.
    In 2000, the petition explains, the Robert Mondavi Winery leased 
more than 1,000 acres in the southern Santa Margarita Valley for 
commercial vineyard development. This acreage is bisected by the 
current southernmost boundary of the Paso Robles AVA. At the time of 
the petition, vineyards covered 800 of the 1,000 acres, with plantings 
located on both sides of the

[[Page 3427]]

existing Paso Robles AVA boundary line, according to the petition.

Distinguishing Features

    The proposed expansion of the Paso Robles AVA relies on the Santa 
Margarita Valley's uniform topography, climate, soils, geologic 
history, and geomorphology. These geographical features, the petition 
notes, are the same throughout the valley, which is currently bisected 
by the southernmost boundary line of the existing Paso Robles AVA. The 
Santa Margarita Valley, which makes up the portion of the Salinas River 
Valley containing Santa Margarita and Rinconada Creeks, extends south 
from the city of Atascadero, through the town of Santa Margarita, and 
continues south-southeastward through the proposed expansion area, 
according to the USGS San Luis Obispo regional map and the petition.
    Professor Deborah L. Elliott-Fisk, Ph.D, of the University of 
California, Davis, an expert on the geography and terroir of California 
and viticultural area designations, researched and provided the data 
for the distinguishing features discussed in the petition. According to 
the petition, Dr. Elliott-Fisk also coordinated the data and analyses 
supplied by meteorologist Donald Schukraft, Western Weather Group, LLC, 
and other experts.
Climate
    The climate of the Paso Robles AVA as a whole, according to Dr. 
Elliott-Fisk, has smaller monthly temperature ranges and less 
continental influence than the inland areas further to the east, but is 
less influenced by Pacific marine air and fog than the coastal regions 
to the west due to the blocking effect of the Santa Lucia Mountains. As 
part of the larger Paso Robles region, the Santa Margarita Valley has 
climatic conditions similar to the Paso Robles AVA, Dr. Elliott-Fisk 
notes, and these conditions exist on both sides of the existing 
southernmost boundary of the AVA, which passes from west to east 
through the valley. Dr. Elliott-Fisk adds that other climate 
similarities found within the valley on either side of the existing AVA 
boundary include cold air drainage, cold air ponding under temperature 
inversions, and similar frost patterns, especially early in the growing 
season. Also, annual precipitation in the valley averages 29 inches, 
while regions to the east are drier and the coastal mountains to the 
west are wetter.
    These climatic similarities also are evidenced by various climate 
classification systems. For example, the petition states, the global 
scale climate classification system of Koppen, Geiger and Pohl (1953) 
labels the great majority of the Paso Robles region as a Mediterranean 
warm summer climate (Csb), while the region to the east has a 
Mediterranean hot summer climate (Csa).
    Dr. Elliott-Fisk states that the climate of the Santa Margarita 
Valley is classified as a cool region II climate of approximately 2,900 
degree days under the Winkler climate classification system, which is 
based on the heat accumulation during the growing season. This 
classification is found on both sides of the existing southernmost Paso 
Robles AVA boundary. (As a measurement of heat accumulation during the 
growing season, 1 degree day accumulates for each degree Fahrenheit 
that a day's mean temperature is above 50 degrees, which is the minimum 
temperature required for grapevine growth. In the Winkler system, 
climatic region I has less than 2,500 degree days per year; region II, 
2,501 to 3,000; region III, 3,001 to 3,500; region IV, 3,501 to 4,000; 
and region V, 4,001 or more. See pages 61-64 of ``General 
Viticulture,'' by Albert J. Winkler, University of California Press, 
1974.)
    Regarding the southern end of the Santa Margarita Valley that lies 
beyond the proposed expansion, Dr. Elliott-Fisk explains that the steep 
topography east, south, and west of the narrow valley floor causes 
increases in relief precipitation and evening settling of cold, dense 
air at the valley's terminus. Local farmers, the petition explains, 
state that air temperatures at the far southern end of the valley are 
too cold to produce quality wine grapes.
Geology
    The geological features that characterize the southern region of 
the Paso Robles AVA continue across the southernmost boundary line of 
the viticultural area and are found throughout the Santa Margarita 
Valley, including the proposed expansion area. Dr. Elliott-Fisk 
explains that the Salinas River originally formed the Santa Margarita 
Valley through a process of soil erosion and deposition, while the 
complex faulting of the Santa Lucia Range formed a graben basin that 
extends along the valley floor and crosses the existing Paso Robles AVA 
southernmost boundary line. Later, Dr. Elliott-Fisk notes, the Salinas 
River carved a new channel to the east through the soft Monterey 
Formation shales along the Rinconada Fault as the San Andreas Fault 
zone became more active. Rinconada Creek, a primary tributary of the 
Salinas River in the Santa Margarita Valley area, then deposited a 
series of broad alluvial fans and terraces across the older Salinas 
River alluvial fill, Dr. Elliott-Fisk explains. She notes that these 
alluvial terraces extend north and south of the current Paso Robles AVA 
boundary line and exist throughout the proposed expansion area.
    To the east, south, and west of the proposed Paso Robles AVA 
expansion, Dr. Elliott-Fisk explains, the geology of the landscape is 
unsuitable for commercial production of wine grapes. She states that, 
to the east, granitic rocks on the mountainsides make the area 
difficult to farm, and the weathering and failure of near-surface rock 
make road building difficult. Also, to the south, and at the narrowed 
southern terminus of the Santa Margarita Valley, Franciscan 
conglomerate rock underlies the shallow alluvium creating an 
environment lacking in adequate groundwater. To the west, the landscape 
includes massive units of the late Cretaceous Franciscan and Great 
Valley formations, consisting of hard marine sandstones and 
conglomerates on steep mountain slopes, making the terrain unsuitable 
for viticulture.
Soils
    Similar soils exist on both sides of the current Paso Robles AVA 
southern boundary line, according to the current USDA soil survey for 
the Paso Robles Area of San Luis Obispo County (Lindsey, 1978). 
Climate, parent material, topography, and time, Dr. Elliott-Fisk 
states, all contribute to the soil type similarities that extend the 
length of the Santa Margarita Valley. The soils of the Santa Margarita 
Valley, Dr. Elliott-Fisk explains, include the deep gravelly loam soils 
of late mid-Quaternary age, grading into shallower clay loam soils 
against bedrock on the hillsides. Also, younger alluvial deposits 
dominate the flood plains of the valley's creeks.
    The soils and terrain to the south, east, and west of the proposed 
southern expansion of the Paso Robles AVA are, however, unsuitable for 
commercial viticulture, Dr. Elliott-Fisk explains. To the south, the 
soils of the valley floor include clay loams with low water 
permeability, high water capacity, and moderate shrink-swell potential, 
while the mountain slopes to the east and west have a shallow topsoil, 
small rooting zones for grapevines, and an erosion potential, making 
those areas unsuitable for viticulture.

Evidence Summary

    The PRAVAC petition, including Dr. Elliott-Fisk's discussion of the 
proposed

[[Page 3428]]

expansion area's distinguishing features and a detailed letter from 
vineyard developer and manager Neil Roberts, emphasizes that similar 
geological, geographical, and climatic conditions extend through the 
Santa Margarita Valley, which encompasses a portion of the existing 
Paso Robles AVA as well as the proposed expansion area. The landforms, 
topography, and geology features that form the Santa Margarita Valley, 
the petition explains, are similar both north and south of the existing 
Paso Robles AVA southernmost boundary line. Also, the valley's climate, 
as reflected by Winkler's degree-day values, and its soil types, as 
documented in the 1978 USDA soil survey for the Paso Robles Area of San 
Luis Obispo County, show strong similarities on both sides of the 
current Paso Robles AVA southernmost boundary line. The petition adds 
that vineyards are farmed the same way north and south of the current 
Paso Robles AVA boundary line through the valley and that these 
vineyards grow the same varietals.

Notice of Proposed Rulemaking and Comments Received

    TTB published Notice No. 85 regarding the proposed expansion of the 
Paso Robles viticultural area in the Federal Register (73 FR 40474) on 
July 15, 2008. In that notice, TTB invited comments by September 15, 
2008, from all interested persons. We expressed particular interest in 
receiving comments concerning the similarity of the proposed expansion 
area to the currently existing Paso Robles viticultural area.
    TTB received eight comments in response to Notice No. 85. Seven of 
the comments supported the expansion of the Paso Robles viticultural 
area as proposed. One commenter, Justin Kahler, supported a southern 
expansion of the Paso Robles viticultural area, but disagreed with the 
eastern portion of the proposed new boundary line.
    Mr. Kahler requested that the proposed expansion of the Paso Robles 
viticultural area continue eastward approximately 2.5 miles generally 
along Las Pilitas Road, incorporating sections 6, 5, 4, and 33, 
Township 30 South and Range 14 East, of the Lopez Mountain and Santa 
Margarita Lake USGS quadrangle maps. Mr. Kahler stated in his request 
that the additional expansion area was entirely within the multi-county 
Central Coast viticultural area. Upon review of Mr. Kahler's request 
for an expansion larger than originally proposed for the Paso Robles 
viticultural area, TTB found that the additional area that Mr. Kahler 
proposed extends eastward beyond the Central Coast viticultural area 
boundary line. In contrast, the current Paso Robles viticultural area 
and the southern expansion area covered by the PRAVAC petition are 
entirely within the Central Coast viticultural area. Moreover, the 
eastern boundary line of the PRAVAC-proposed southern expansion area 
shares a portion of, but does not cross over, the eastern boundary line 
of the Central Coast viticultural area.
    TTB notes that in the final rule that established the Central Coast 
viticultural area, T.D. ATF-216, the ``Geographical Features Which 
Affect Viticultural Features'' section states that ``the eastern 
boundary of the Central Coast viticultural area is drawn at the 
approximate inland limit of the marine influence on climate.'' This 
finding regarding the Central Coast AVA is relevant because it also 
addressed the Paso Robles viticultural area within it. T.D. ATF-216 
explains that the marine influence traveling south from Monterey Bay, 
through the Salinas River Valley, reaches the Paso Robles area but to a 
lesser degree. Thus, the Paso Robles area is still under marine 
influence and possesses microclimates characteristic of coastal 
valleys, especially in comparison to areas that are farther inland 
(such as the area identified by Mr. Kahler in his request to further 
expand the Paso Robles AVA).
    In his comment and request on this proposed rulemaking action, Mr. 
Kahler did not address the issue that his proposed further expansion 
area extends beyond the current boundary of the Central Coast 
viticultural area and outside the determined approximate inland limit 
of the marine influence on climate. Thus, TTB has concluded, after 
careful consideration, that it does not have sufficient information to 
establish the eastward expansion requested by Mr. Kahler in this final 
rule. Such expansion may be the subject of a future rulemaking action.

TTB Finding

    After careful review of the petition and comments received, TTB 
finds that the evidence submitted supports the expansion of the 
viticultural area as proposed by the PRAVAC. Therefore, under the 
authority of the Federal Alcohol Administration Act and part 4 of our 
regulations, we amend our regulations to expand the Paso Robles 
viticultural area in San Luis Obispo County, California, effective 30 
days from the publication date of this document.

Boundary Description

    See the modified narrative boundary description reflecting the 
expanded viticultural area in the regulatory text amendment published 
at the end of this document.

Maps

    The petitioner provided the required map pertaining to the 
expansion, and we list it below in the amended regulatory text.

Impact on Current Wine Labels

    The expansion of the Paso Robles viticultural area does not affect 
any currently approved wine labels. The approval of this expansion may 
allow additional vintners to use ``Paso Robles'' as an appellation of 
origin on their 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 a 
viticultural area name or with a brand name that includes a 
viticultural area name or other term identified as being viticulturally 
significant in part 9 of the TTB regulations, at least 85 percent of 
the wine must be derived from grapes grown within the area represented 
by that name or other term, and the wine must meet the other conditions 
listed in 27 CFR 4.25(e)(3). Different rules apply if a wine has a 
brand name containing a viticultural area name or other viticulturally 
significant term 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

    We certify that this regulation will not have a significant 
economic impact on a substantial number of small entities. This 
regulation imposes no new reporting, recordkeeping, or other 
administrative requirement. Any benefit derived from the use of a 
viticultural area name is 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

    This rule is not a significant regulatory action as defined by 
Executive Order 12866. Therefore, it requires no regulatory assessment.

Drafting Information

    N.A. Sutton of the Regulations and Rulings Division drafted this 
notice.

List of Subjects in 27 CFR Part 9

    Wine.

[[Page 3429]]

The Regulatory Amendment

0
For the reasons discussed in the preamble, we amend title 27 CFR, 
chapter 1, part 9, 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. Section 9.84 is amended by revising paragraphs (b), (c)(7), and 
(c)(8), redesignating paragraphs (c)(9) and (c)(10) as (c)(10) and 
(c)(11), and adding a new paragraph (c)(9). The revisions and addition 
read as follows:


Sec.  9.84  Paso Robles.

* * * * *
    (b) Approved Map. The appropriate map for determining the boundary 
of the Paso Robles viticultural area is the United States Geological 
Survey 1:250,000-scale map of San Luis Obispo, California, 1956, 
revised 1969, shoreline revised and bathymetry added 1979.
    (c) Boundaries. * * *
* * * * *
    (7) Then in an easterly direction along the T.29S. and T.30S. line 
for approximately 3.1 miles to its intersection with the eastern 
boundary line of the Los Padres National Forest;
    (8) Then in a southeasterly direction along the eastern boundary 
line of the Los Padres National Forest for approximately 4.1 miles to 
its intersection with the R.13E. and R.14E. line;
    (9) Then in a northerly direction along the R.13E. and R.14E. line 
for approximately 8.7 miles to its intersection with the T.28S. and 
T.29S. line;
* * * * *

    Dated: December 5, 2008.
John J. Manfreda,
Administrator.
    Approved: December 16, 2008.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and Tariff Policy).
[FR Doc. E9-994 Filed 1-16-09; 8:45 am]
BILLING CODE 4810-31-P
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