51772 Federal Register / Vol. 74, No. 194 / Thursday October 8, 2009 / Rules and Regulations 

upgraded after the effective date of the 

regulations in this part. 

(f) Nothing in this part shall be 

construed as requiring the use of any 

particular type of electronic toll 

collection technology. However, any 

such toll collection technology must 

meet the interoperability requirement of 

this section. 

§ 950.9 Enforcement. 

(a) The tolling authority of any facility 

operating pursuant to authority under a 

1604 toll program shall be suspended in 

the event the relevant toll agency is not 

in compliance with this part within six 

(6) months of receiving a written notice 

of non-compliance from FHWA. If the 

toll agency demonstrates that it is taking 

the necessary steps to come into 

compliance within a reasonable period 

of time, FHWA shall extend such tolling 

authority. 

(b) The FHWA may take other action 

as may be appropriate, including action 

pursuant to § 1.36 of this title. 

[FR Doc. E9–24296 Filed 10–7–09; 8:45 am] 

BILLING CODE 4910–22–P 

DEPARTMENT OF THE TREASURY 

Alcohol and Tobacco Tax and Trade 

Bureau 

27 CFR Part 9 

[Docket No. TTB–2008–0008; T.D. TTB–82; 

Re: Notice No. 89] 

RIN 1513–AB52 

Establishment of the Happy Canyon of 

Santa Barbara Viticultural Area 

(2007R–311P) 

AGENCY: Alcohol and Tobacco Tax and 

Trade Bureau, Treasury. 

ACTION: Final rule; Treasury decision. 

SUMMARY: This Treasury decision 

establishes the 23,941-acre ‘‘Happy 

Canyon of Santa Barbara’’ American 

viticultural area in Santa Barbara 

County, California. This viticultural area 

lies within the larger Santa Ynez Valley 

viticultural area 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 Date: November 9, 

2009. 

FOR FURTHER INFORMATION CONTACT: 

Brady Groscost, Regulations and Rulings 

Division, Alcohol and Tobacco Tax and 

Trade Bureau, 1310 G St. NW., Room 

200E, Washington, DC 20220; phone 

202–927–8210. 

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 grapegrowing region as a viticultural area. 

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 United 

States Geological Survey (USGS) maps; 

and 

• A copy of the appropriate USGS 

map(s) with the proposed viticultural 

area’s boundary prominently marked. 

Petition for Happy Canyon of Santa 

Barbara 

TTB received a petition from Wes 

Hagen, Vineyard Manager and 

Winemaker at Clos Pepe Vineyards, 

Lompoc, California, on behalf of Happy 

Canyon vintners and grape growers, 

proposing the establishment of the 

Happy Canyon of Santa Barbara 

American viticultural area. According to 

the petitioner, the proposed viticultural 

area encompasses 23,941 acres, 492 

acres of which are in commercial 

viticulture in 6 vineyards. The proposed 

viticultural area is entirely within the 

Santa Ynez Valley viticultural area (27 

CFR 9.54), which in turn is completely 

within the multicounty Central Coast 

viticultural area (27 CFR 9.75). 

The petitioner stated that the 

viticulture of the proposed Happy 

Canyon of Santa Barbara viticultural 

area, in eastern Santa Ynez Valley, is 

distinguishable from that of the rest of 

the valley, including the Sta. Rita Hills 

viticultural area (27 CFR 9.162), in 

western Santa Ynez Valley. We 

summarize below the supporting 

evidence submitted with the petition. 

Name Evidence 

According to the petitioner and USGS 

maps, the ‘‘Happy Canyon of Santa 

Barbara’’ name applies to a canyon 

located in Santa Barbara County. TTB 

notes that a search of the USGS 

Geographical Names Information 

System (GNIS) includes 10 hits for 

‘‘Happy Canyon,’’ 3 of which are in 

California. The petitioner originally 

proposed ‘‘Happy Canyon’’ as the name 

of the viticultural area. However, based 

on results of the GNIS search, TTB 

determined that the Happy Canyon 

name would require a geographical 

modifier to pinpoint its physical 

location and avoid potential consumer 

confusion with other identical or similar 

names. After careful consideration, the 

petitioner modified the name of the 

petitioned-for viticultural area to 


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‘‘Happy Canyon of Santa Barbara.’’ The 

petitioner believes that the proposed 

Happy Canyon of Santa Barbara 

viticultural area name will identify the 

area as a unique grape-growing region 

for both consumers and industry 

members. 

According to the USGS Lake 

Cachuma, Santa Ynez, and Figueroa 

Mountain maps that the petitioner 

provided, Happy Canyon is a region that 

descends in elevation northeast-tosouthwest, north and west of Lake 

Cachuma in Santa Barbara County. 

Happy Canyon Road, a light-duty road, 

meanders through the proposed 

viticultural area. 

A road map of Santa Barbara County 

shows that the Happy Canyon area and 

Happy Canyon Road are to the east of 

the town of Santa Ynez (Automobile 

Club of Southern California, California 

State Automobile Association, January 

2003 edition). The map also shows that 

the Happy Canyon area is within Santa 

Barbara County. 

Boundary Evidence 

The petitioner documents that the 

proposed Happy Canyon of Santa 

Barbara viticultural area lies in the 

eastern part of the 40-mile-wide Santa 

Ynez Valley and the northern part of 

Santa Barbara County, California. As 

shown on USGS maps, Happy Canyon 

comprises canyon terrain, hills, and 

river and creek basins to the east and 

south of the San Rafael Mountains, west 

of Lake Cachuma, and north of the Santa 

Ynez River. 

The petitioner explains that the 

proposed boundary line of the Happy 

Canyon of Santa Barbara viticultural 

area was drawn by a local committee of 

viticulturists, consultants, and vintners, 

all of whom had formal training in 

geology, geography, and agriculture. The 

proposed boundary line encompasses a 

unique geological and climatic grapegrowing region on the east side of the 

Santa Ynez Valley viticultural area. The 

proposed boundary line skirts the San 

Rafael Mountains to the north, the Los 

Padres National Forest to the east, and 

the Lake Cachuma Recreation Area on 

portions of the south side, according to 

the written boundary description. The 

proposed boundary line, continuing in a 

clockwise direction, incorporates a 

portion of the Santa Ynez River as the 

south boundary line, and uses a series 

of straight lines between elevation 

points to skirt the steep foothills west of 

Santa Agueda and Figueroa Creeks. 

According to the petitioner, the 

northern and northeastern portions of 

the boundary line of the proposed 

Happy Canyon of Santa Barbara 

viticultural area are based on the 

location of the best grape-growing areas, 

viable agricultural soils, sparse and 

rocky pine forests, and high elevations. 

Photographs and descriptions of the 

landscape in the proposed viticultural 

area tell of the change from green 

pastures to stony, infertile soils at the 

Los Padres National Forest to the 

northeast. The U.S. Department of 

Agriculture, Soil Conservation Service, 

did not map the soils in the national 

forest. However, as shown on the USGS 

maps submitted with the petition, 

elevations north of Happy Canyon rise 

from 1,200 to 3,200 feet, far exceeding 

the average 1,200-foot elevation within 

the proposed viticultural area. 

The USGS maps show that the eastern 

boundary line of the proposed Happy 

Canyon of Santa Barbara viticultural 

area runs, north to south, along the 

border of the Los Padres National 

Forest, and continues south along the 

dividing line of several land grants. The 

proposed boundary line cuts through 

steep, mountainous terrain where 

elevations are between approximately 

800 and 3,400 feet. The petitioner 

explains that the proposed eastern 

boundary line uses the same line 

established in 1983 for the eastern 

border of the Santa Ynez Valley 

viticultural area. Local winegrowers in 

Happy Canyon assert that the eastern 

boundary line applies equally well to 

the Santa Ynez Valley and the proposed 

Happy Canyon of Santa Barbara 

viticultural areas. 

According to the written boundary 

description in the petition and the 

USGS maps, the southern boundary line 

of the proposed Happy Canyon of Santa 

Barbara viticultural area coincides with 

the southern boundary line of the Santa 

Ynez Valley viticultural area along the 

boundary line of the Lake Cachuma 

Recreation Area to its intersection with 

the Santa Ynez River. The proposed 

boundary line then follows the Santa 

Ynez River west to its intersection with 

a road, where the boundary line turns 

north. 

The petitioner explains that the 

committee, in determining the 

southwestern portion of the boundary of 

the proposed viticultural area, 

considered only areas that were 

traditionally known as Happy Canyon 

and that had similar potential for 

viticulture. 

The petitioner explains that the 

central and northerly portions of the 

western boundary line of the proposed 

Happy Canyon of Santa Barbara 

viticultural area define the boundaries 

of grazed, rolling hills and deep canyons 

with ridge lines 1,200 to 1,800 feet in 

elevation. According to the written 

boundary description and USGS maps, 

the rolling foothills of the Santa Agueda 

Creek Valley, where cattle graze both 

sides of the creek, lie immediately 

inside the proposed western boundary 

line. As the Santa Agueda Creek Valley 

rises to the west, rolling foothills meet 

steep canyons at the western boundary 

line of the proposed Happy Canyon of 

Santa Barbara viticultural area. The 

petitioner notes that the steepness of the 

terrain to the west and outside of the 

proposed boundary line contrasts with 

the topography and geology of the 

preserved oak scrubland, open rolling 

grazing land, and vineyards to the east, 

inside the proposed boundary line. 

Distinguishing Features 

The petitioner states that the 

distinguishing features of the proposed 

Happy Canyon of Santa Barbara 

viticultural area are climate, 

topography, drainage, soils, and 

geology. Happy Canyon, in the eastern 

portion of the Santa Ynez Valley, and 

the western portion of the Santa Ynez 

Valley have overt differences in climate, 

geological parent material, and soil 

drainage patterns. 

Climate 

According to the petitioner, of all the 

grape-growing areas in the Santa Ynez 

Valley, Happy Canyon is the furthest 

inland and has the warmest climate. It 

is located in the easternmost part of the 

Santa Ynez Valley, and the daytime 

highs and nighttime lows in that part of 

the county vary more in a 24-hour 

period than those in other parts of the 

valley. At about 12 miles west of the 

proposed viticultural area, the inland 

mountain ranges change direction from 

west-east to north-south. The northsouth mountain ridge blocks the Pacific 

coastal breezes, preventing them from 

cooling the canyon. As a result, the 

ridge traps in heat in Happy Canyon 

during the warmer growing months. 

The petition for the Happy Canyon of 

Santa Barbara viticultural area includes 

climatic data for the period 2004–6 

provided by Kerry Martin of Coastal 

Vineyard Care Associates. Some of the 

data for the Happy Canyon area and the 

areas to the west and north of Happy 

Canyon were obtained from data 

stations located in vineyards and 

maintained by Coastal Vineyard Care 

Associates. The data for the areas to the 

east and south of Happy Canyon were 

retrieved from the Western Regional 

Climate Center (at http:// 

www.wrcc.dri.edu/) and the California 

Irrigation Management Information 

System (at http:// 

wwwcimis.water.ca.gov/cimis/ 

welcome.jsp), respectively. The 

petitioner used those data in creating 


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the table below, which compares 

growing degree days, based on the 

Winkler climate classification system, 

for Happy Canyon and the surrounding 

areas; see ‘‘General Viticulture,’’ by 

Albert J. Winkler, University of 

California Press, 1974. 

In the Winkler system, 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. The data, in degree days, show 

that, compared to the Happy Canyon 

area, areas to the north, south, and west 

of Happy Canyon average between 5 and 

20 percent cooler and the area to the 

east averages 15 percent warmer. 

GROWING DEGREE DAYS WITHIN AND OUTSIDE OF HAPPY CANYON, 2004–2006 

Location relative to Happy Canyon 2004 2005 2006 Overall 

average 

Percent cooler 

or warmer than 

Happy Canyon 

In Happy Canyon .............................................................. 3,414 3,187 3,419 3,340 Same. 

North—Los Alamos ........................................................... 3,250 2,700 3,200 3,050 9% cooler. 

East—Figueroa Mountain ................................................. 3,872 3,721 3,965 3,853 15% warmer. 

South—Santa Barbara ...................................................... 2,795 2,537 2,721 2,684 20% cooler. 

West—Ballard Canyon ...................................................... 3,300 2,950 3,250 3,167 5% cooler. 

Topography 

The petitioner explains that the 

topography of the proposed Happy 

Canyon of Santa Barbara viticultural 

area includes varying elevations, rolling 

foothills, and a distinctive southwest 

drainage. According to the USGS maps, 

the proposed viticultural area lies on the 

east side and in the higher elevations of 

the Santa Ynez Valley region. Elevations 

within the proposed boundary line 

range from 500 feet in the southwest 

corner to 3,430 feet in the northeast 

corner, in the foothills of the San Rafael 

Range. 

The petitioner explains that between 

the Pacific Ocean and the Santa Ynez 

Valley, hills and mountains trend westto-east. As the elevation of the Santa 

Ynez Valley rises from west to east, the 

hills and mountains turn from a westeast direction to a generally north-south 

direction. The proposed viticultural 

area, located inland, lies along 

mountains and hills with a north-south 

orientation. 

Drainage 

According to the petitioner, the 

southwest drainage pattern of the 

proposed viticultural area is 

comparatively unique. To the west of 

the proposed boundary line, between 

Santa Agueda Creek and Figueroa 

Mountain Road, the drainage pattern 

trends south-southeast. 

Soils and Geology 

According to the current soil survey, 

the two major soil types in the proposed 

Happy Canyon of Santa Barbara 

viticultural area are related to 

topography (‘‘Soil Survey of Northern 

Santa Barbara Area, California,’’ issued 

by the United States Department of 

Agriculture, Soil Conservation Service, 

1972). Alluvial soils are at lower 

elevations and on bottoms of canyons; 

upland soils are at higher elevations of 

canyons and on surrounding peaks and 

hilltops. 

The petitioner explains that the 

current soil survey shows that the soil 

characteristics of the proposed Happy 

Canyon of Santa Barbara viticultural 

area include green serpentine 

(magnesium silicate hydroxide) parent 

material, elevated levels of 

exchangeable magnesium, lower levels 

of exchangeable sodium, and a high 

cation exchange capacity (CEC). High 

CEC levels, because of the amount of 

positively charged ions in the soils, 

increase the uptake of nutrients by plant 

roots. 

The proposed viticultural area 

comprises the Shedd-Santa Lucia-Diablo 

and Toomes-Climara associations on 

uplands. The Shedd-Santa Lucia-Diablo 

association consists of strongly sloping 

to very steep, well drained shaly clay 

loams and silty clays. The ToomesClimara association consists of 

moderately steep to very steep, 

somewhat excessively drained and well 

drained clay loams and clays. 

The Chamise-Arnold-Crow Hills 

association is of greater extent in the 

western portion of the Santa Ynez 

Valley viticultural area, west of the 

proposed Happy Canyon of Santa 

Barbara viticultural area. This 

association consists of gently sloping to 

very steep, well drained and somewhat 

excessively drained sands to clay loams 

on high terraces and uplands. 

The petitioner explains that the soils 

in the western portion of the Santa Ynez 

Valley viticultural area, compared to the 

soils in the proposed Happy Canyon of 

Santa Barbara viticultural area, have less 

magnesium, a significantly lower CEC 

level, and higher amounts of 

exchangeable sodium. Although 

drainage patterns change along the 

proposed western boundary line, the 

soils on both sides of the boundary line 

are similar. 

The Positas-Ballard-Santa Ynez soil 

association is scattered throughout 

much of the southern part of the 

proposed Happy Canyon of Santa 

Barbara viticultural area. Sedimentary 

rock, unfavorable for viticulture, is 

predominant along the south side of the 

Santa Ynez River, outside the proposed 

boundary line. 

The petitioner provides the results of 

two soil studies conducted in 

connection with the proposed Happy 

Canyon of Santa Barbara viticultural 

area. The first study details the 

differences in CEC among soils tested at 

sites in the proposed viticultural area 

and in areas immediately southwest and 

further west of the proposed boundary 

line, in the western end of the Santa 

Ynez Valley. The study shows that the 

soils in the proposed viticultural area 

have significantly more magnesium and 

an elevated CEC level as compared to 

the soils in areas beyond the proposed 

boundary line to the southwest and west 

(see table below). The petitioner also 

notes that the levels of calcium and 

sodium in the soils in the Happy 

Canyon are less than half those in the 

soils to the southwest and west. 


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Federal Register / Vol. 74, No. 194 / Thursday October 8, 2009 / Rules and Regulations 51775 

CATION EXCHANGE CAPACITY (CEC) IN SOILS WITHIN AND OUTSIDE OF HAPPY CANYON

[meq/100g = milliequivalents of cations absorbed per 100 grams of soil] 

Location Magnesium Calcium Sodium Total CEC in 

meq/100g 

Percent of total CEC 

Westerly Vineyard (in Happy Canyon) ............................................................ 74.1 23.1 0.72 32.0 

Armour Ranch Road and Hwy 154 (1 mile southwest of Happy Canyon) ..... 34.4 60.0 2.0 12.5 

Clos Pepe (in the Sta. Rita Hills viticultural area, in the west end of Santa 

Ynez Valley) ................................................................................................. 26.0 61.0 5.0 11.6

The second study that the petitioner 

provided examines the differences in 

soils in the proposed Happy Canyon of 

Santa Barbara viticultural area and in 

canyons outside the boundary line, as 

far west as Figueroa Mountain Road, 

which is located approximately 4 miles 

away. The study is based on an acreage 

table of the soils on approximately 

35,000 acres within the proposed 

viticultural area and on an equal 

number of acres to the west (see ‘‘Soil 

Survey of Northern Santa Barbara Area, 

California’’). The results of that study 

confirm the differences in total acreage 

and slope of soils in areas on either side 

of the proposed western boundary line 

of the Happy Canyon of Santa Barbara 

viticultural area (see table below). 

DOMINANT SOIL MAP UNITS WITHIN AND OUTSIDE OF HAPPY CANYON

Soil symbol and soil name 

Number of map 

units/percentage 

of survey area 

Percentage slope 

Happy Canyon of Santa Barbara (East of Foothills Adjacent to Santa Agueda Creek) 

DaF—Diablo silty clay .................................................................................................................................. 28/14 30 to 45 percent. 

SrG3—Shedd silty clay loam ....................................................................................................................... 23/12 9 to 30 percent. 

SdC—Salinas silty clay loam ....................................................................................................................... 11/6 2 to 9 percent. 

ChF—Chamise shaly loam .......................................................................................................................... 11/6 15 to 45 percent. 

SrG—Shedd silty clay loam ......................................................................................................................... 11/6 9 to 30 percent. 

Figueroa Area (West of Foothills and Santa Agueda Creek to Figueroa Mountain Road) 

PtC—Positas fine sandy loam ..................................................................................................................... 25/17 2 to 9 percent. 

ChF—Chamise shaly loam .......................................................................................................................... 22/15 15 to 45 percent. 

PtD—Positas fine sandy loam ..................................................................................................................... 13/9 9 to 15 percent. 

CkF—Chamise clay loam ............................................................................................................................. 11/8 30 to 45 percent. 

SnC—Santa Ynez gravelly fine sandy loam ................................................................................................ 11/8 9 to 15 percent. 

According to the petitioner, the 

results of the soil study above show a 

unique geological pattern that justifies 

placing the western portion of the 

proposed boundary line in the vicinity 

of the Santa Agueda and Figueroa 

Creeks. The results also show that the 

Happy Canyon area comprises a group 

of soils different from those found to the 

west. 

Notice of Proposed Rulemaking and 

Comments Received 

TTB published Notice No. 89 

regarding the proposed Happy Canyon 

of Santa Barbara viticultural area in the 

Federal Register (73 FR 46830) on 

August 12, 2008. In that notice, TTB 

invited comments by October 14, 2008, 

from all interested persons. We 

expressed particular interest in 

receiving comments on whether the 

evidence regarding name and 

distinguishing features is sufficient to 

warrant the establishment of this new 

viticultural area within the existing 

Santa Ynez Valley and the larger Central 

Coast viticultural areas. We also 

solicited comments on the sufficiency 

and accuracy of the name, boundary, 

climatic, and other required information 

submitted in support of the petition. We 

received seven comments from 

individuals in response to that notice, 

and all supported the establishment of 

the Happy Canyon of Santa Barbara 

viticultural area as originally proposed. 

TTB Finding 

As stated above, the proposed 

viticultural area is entirely within the 

Santa Ynez Valley viticultural area (27 

CFR 9.54), which in turn is completely 

within the multicounty Central Coast 

viticultural area (27 CFR 9.75). The 

Central Coast viticultural area, 

established by T.D. ATF–216 published 

in the Federal Register on October 24, 

1985 (50 FR 43128), identified an area 

between the Pacific Ocean and the 

California Coastal Ranges as being under 

marine influence on climate. T.D. ATF– 

216 stated that the marine influence 

caused precipitation, heat summation, 

maximum high temperatures, minimum 

low temperatures, length of frost free 

season, wind, marine fog incursion, and 

relative humidity to be significantly 

different from those on the opposite side 

of the Coastal Ranges, which is typically 

arid or semiarid. It also recognized the 

existence of microclimates within this 

relatively large AVA. The Santa Ynez 

Valley viticultural area, established by 

T.D. ATF–132 published in the Federal 

Register on April 15, 1983 (48 FR 

16250), was recognized as having a cool 

Region II climate on the Winkler system, 

citing the average degree days in 

Solvang in the center of the valley, and 

also that summertime temperatures 

increase going west to east. T.D. ATF– 


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132 also identifies rainfall average of 16 

inches, fog, and three major soils 

associations (Positas-Ballard-Santa 

Ynez, Chamise-Arnold-Crow Hill, and 

Shedd Santa Lucia-Diablo) as being 

distinguishing geographical features. 

Although the proposed Happy Canyon 

of Santa Barbara viticultural area shares 

some of the characteristics of the Central 

Coast and Santa Ynez Valley viticultural 

areas, its location furthest inland and 

near a north-south mountain ridge 

blocking some of the marine influence 

and its unique soil characteristic of high 

CEC justify recognition of Happy 

Canyon of Santa Barbara as a distinct 

viticultural area within the two existing 

AVAs. 

Accordingly, after careful review of 

the petition and the comments received, 

TTB finds that the evidence submitted 

supports the establishment of the 

proposed viticultural area. Therefore, 

under the authority of the Federal 

Alcohol Administration Act and part 4 

of our regulations, we establish the 

‘‘Happy Canyon of Santa Barbara’’ 

viticultural area in Santa Barbara 

County, California, effective 30 days 

from the publication date of this 

document. 

Boundary Description 

See the narrative boundary 

description of the viticultural area in the 

regulatory text published at the end of 

this document. 

Maps 

The maps for determining the 

boundary of the viticultural area are 

listed below in the regulatory text. 

Impact on Current Wine Labels 

Part 4 of the TTB regulations prohibits 

any label reference on a wine that 

indicates or implies an origin other than 

the wine’s true place of origin. With the 

establishment of this viticultural area 

and its inclusion in part 9 of the TTB 

regulations, its name, ‘‘Happy Canyon of 

Santa Barbara,’’ is recognized under 27 

CFR 4.39(i)(3) as a name of viticultural 

significance. The text of the new 

regulation clarifies this point. 

Once this final rule becomes effective, 

wine bottlers using ‘‘Happy Canyon of 

Santa Barbara’’ in a brand name, 

including a trademark, or in another 

label reference as to the origin of the 

wine, will have to ensure that the 

product is eligible to use the viticultural 

area’s full name as an appellation 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). If the wine is not 

eligible for labeling with the viticultural 

area name or other viticulturally 

significant term and that name or term 

appears in the brand name, then the 

label is not in compliance and the 

bottler must change the brand name and 

obtain approval of a new label. 

Similarly, if the viticultural area name 

or other viticulturally significant term 

appears in another reference on the 

label in a misleading manner, the bottler 

would have to obtain approval of a new 

label. Accordingly, if a previously 

approved label uses the name ‘‘Happy 

Canyon of Santa Barbara’’ for a wine 

that does not meet the 85 percent 

standard, the previously approved label 

will be subject to revocation, upon the 

effective date of the establishment of the 

Happy Canyon of Santa Barbara 

viticultural area. 

Different rules apply if a wine has a 

brand name containing a viticultural 

area name or other term of viticultural 

significance 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 

Brady Groscost of the Regulations and 

Rulings Division drafted this notice. 

List of Subjects in 27 CFR Part 9 

Wine. 

The Regulatory Amendment 

■ For the reasons discussed in the 

preamble, we amend title 27 CFR, 

chapter I, part 9, as follows: 

PART 9—AMERICAN VITICULTURAL 

AREAS 

■ 1. The authority citation for part 9 

continues to read as follows: 

Authority: 27 U.S.C. 205. 

Subpart C—Approved American 

Viticultural Areas 

■ 2. Subpart C is amended by adding 

§ 9.217 to read as follows: 

§ 9.217 Happy Canyon of Santa Barbara. 

(a) Name. The name of the viticultural 

area described in this section is ‘‘Happy 

Canyon of Santa Barbara’’. For purposes 

of part 4 of this chapter, ‘‘Happy Canyon 

of Santa Barbara’’ is a term of 

viticultural significance. 

(b) Approved maps. The four United 

States Geological Survey 1:24,000 scale 

topographic maps used to determine the 

boundary of the Happy Canyon of Santa 

Barbara viticultural area are titled: 

(1) Los Olivos, CA, 1995; 

(2) Figueroa Mountain, CA, 1995; 

(3) Lake Cachuma, CA, 1995; and 

(4) Santa Ynez, CA, 1995. 

(c) Boundary. The Happy Canyon of 

Santa Barbara viticultural area is located 

in Santa Barbara County, California. The 

boundary of the Happy Canyon of Santa 

Barbara viticultural area is as described 

below: 

(1) The beginning point is on the Los 

Olivos map at the intersection of the 

Santa Lucia Ranger District diagonal 

line and Figueroa Mountain Road, a 

light-duty road, section 27, T8N, R30W. 

From the beginning point, proceed 

southeast along the Santa Lucia Ranger 

District diagonal line, crossing onto the 

Figueroa Mountain map, and continuing 

east to its intersection with the 

northwest corner of section 6, T7N, 

R29W; then 

(2) Proceed straight south along the 

R29W and R30W line, which is a 

boundary line of the Los Padres 

National Forest, to its intersection with 

the southwest corner of section 18 that 

coincides with one of the two 90-degree, 

southwest corners of the Los Padres 

National Forest, T7N, R29W; then 

(3) Proceed east, south, and then east, 

along the boundary line of the Los 

Padres National Forest, to its 

intersection with the boundary line of 

the Can ̃ ada de Los Pinos, or College 

Rancho Grant, at the northwest corner of 

section 28, T7N, R29W; then 

(4) Proceed straight south along the 

boundary line of the Can ̃ ada de Los 

Pinos, or College Rancho Grant, crossing 

onto the Lake Cachuma map, to its 

intersection with the 1,074-foot Bitt 

elevation point and the Lake Cachuma 

Recreation Area boundary line, section 

17 east boundary line, T6N, R29W; then 


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Federal Register / Vol. 74, No. 194 / Thursday October 8, 2009 / Rules and Regulations 51777 

(5) Proceed generally southwest along 

the Lake Cachuma Recreation Area 

boundary line to its intersection with 

the Santa Ynez River to the west of Lake 

Cachuma and Bradbury Dam, T6N, 

R30W; then 

(6) Proceed generally west along the 

Santa Ynez River, crossing onto the 

Santa Ynez map, and continuing to its 

intersection with California State Road 

154, northwest of BM 533, T6N, R30W; 

then 

(7) Proceed north-northwest in a 

straight line 1.2 miles to the marked 

924-foot elevation point, T6N, R30W; 

then 

(8) Proceed north-northwest in a 

straight line 1.2 miles to the ‘‘Y’’ in an 

unimproved road 0.1 mile south of the 

800-foot elevation line, west of Happy 

Canyon Road, T6N, R30W; then 

(9) Proceed north-northwest in a 

straight line for 0.5 mile, crossing onto 

the Los Olivos map, and continuing to 

the marked 1,324-foot elevation point, 

0.5 mile southwest of Bar G O Ranch, 

T7N, R30W; then 

(10) Proceed north-northwest in a 

straight line for 2.5 miles crossing over 

the marked 1,432-foot elevation point in 

section 9, then continue in a straight 

line northerly 1.4 miles to the marked 

1,721-foot elevation point in section 4, 

T7N, R30W; then 

(11) Proceed north in a straight line 

1.4 miles to the marked 2,334-foot 

elevation point, west of a meandering 

unimproved road and south of Figueroa 

Mountain Road, T8N, R30W; then 

(12) Proceed east-northeast in a 

straight line, returning to the beginning 

point. 

Signed: April 27, 2009. 

John J. Manfreda, 

Administrator. 

Approved: June 11, 2009. 

Timothy E. Skud, 

Deputy Assistant Secretary, (Tax, Trade, and 

Tariff Policy). 

Editorial Note: This document was 

received in the Office of the Federal Register 

on October 5, 2009. 

[FR Doc. E9–24329 Filed 10–7–09; 8:45 am] 

BILLING CODE 4810–31–P 

DEPARTMENT OF THE TREASURY 

Office of the Secretary 

31 CFR Part 1 

Privacy Act; Implementation 

AGENCY: Office of the Secretary, 

Treasury. 

ACTION: Final rule. 

SUMMARY: In accordance with the 

requirements of the Privacy Act of 1974, 

as amended, the Department of the 

Treasury exempts a new Internal 

Revenue Service (IRS) system of records 

entitled ‘‘Treasury/IRS 50.222—Tax 

Exempt/Government Entities (TE/GE) 

Case Management Records’’ from certain 

provisions of the Privacy Act. 

DATES: Effective Date: October 8, 2009. 

FOR FURTHER INFORMATION CONTACT: 

Telephonic inquiries should be directed 

to Marianne Davis, Program Analyst, 

Internal Revenue Service, TE/GE 

Division, at telephone number (949) 

389–4304. Written inquiries should be 

directed to Robert Brenneman, TE/GE 

Reporting and Electronic Examination 

System (TREES) Project Manager, at 

Internal Revenue Service, TE/GE 

Business Systems Planning (SE:T:BSP), 

1111 Constitution Avenue, NW., Attn: 

PE–6M4, Washington, DC 20224. 

SUPPLEMENTARY INFORMATION: The 

Department of the Treasury published a 

notice of proposed rule on December 7, 

2005 (Volume 70, No. 234), pages 

72739–72740, exempting the new 

system of records from certain 

provisions of the Privacy Act of 1974, as 

amended. The IRS published the 

proposed system notice in its entirety 

on December 7, 2005 (Volume 70, 

Number 234), pages 72876–72878. 

Under 5 U.S.C. 552a(k)(2), the head of 

an agency may promulgate rules to 

exempt any system of records within the 

agency from certain provisions of the 

Privacy Act if the system contains 

investigatory material compiled for law 

enforcement purposes. Treasury/IRS 

52.222—Tax Exempt/Government 

Entities (TE/GE) Case Management 

Records contains investigatory material 

compiled for law enforcement purposes. 

The proposed rule requested that 

public comments be sent the Office of 

Governmental Liaison and Disclosure, 

1111 Constitution Avenue, NW., 

Washington, DC 20224, no later than 

January 6, 2006. 

The IRS received one comment on the 

proposed rule and the system of records 

notice urging the IRS: (1) not to exempt 

the system of records from requirements 

that its information be relevant and 

necessary for its purpose; and, (2) to 

limit the scope of its exemptions from 

the Privacy act requirements to provide 

access and correction rights to 

individuals. 

After consideration, the IRS 

determined that the public comment did 

not present any new information that 

would be a basis for changes being made 

to the proposed rule or system of 

records notice because: (1) Relevance 

and necessity can only be established 

with certainty after the information is 

evaluated; and, (2) the access 

provisions, as written, are consistent 

with the language and intent of the 

Privacy Act, comport with the Treasury 

regulation language for (k)(2), and 

explain that the release of information 

to the individual covered by the system 

would provide the individual or entity 

subject to investigation with significant 

information concerning the nature of the 

investigation and could result in 

altering or destruction of documentary 

evidence, the improper influencing of 

witnesses, and other activities that 

could impede or compromise the 

investigation. Accordingly, the 

Department of the Treasury is hereby 

giving notice that the system of records 

entitled ‘‘Treasury/IRS 50.222—Tax 

Exempt/Government Entities (TE/GE) 

Case Management Records’’ is exempt 

from certain provisions of the Privacy 

Act. 

The provisions of the Privacy Act 

from which the system of records is 

exempt pursuant to 5 U.S.C. 552a(k)(2) 

are as follows: 552a(c)(3), (d)(1), (2), (3) 

and (4), (e)(1), (e)(4)(G), (e)(4)(H), 

(e)(4)(I), and (f) because the system 

contains investigatory material 

compiled for law enforcement purposes. 

The following are the reasons why 

this system of records maintained by the 

IRS is exempt pursuant to 5 U.S.C. 

552a(k)(2) of the Privacy Act of 1974. 

(1) 5 U.S.C. 552a(c)(3). This provision 

of the Privacy Act provides for the 

release of the disclosure accounting 

required by 5 U.S.C. 552a(c)(1) and (2) 

to the individual named in the record at 

his/her request. The reasons for 

exempting this system of records from 

the foregoing provision are: 

(i) The release of disclosure 

accounting would put the tax exempt or 

government entity subject to 

investigation or individuals connected 

with those entities on notice that an 

investigation exists and that such 

person is the subject of that 

investigation. 

(ii) Such release would provide the 

subject of an investigation with an 

accurate accounting of the date, nature, 

and purpose of each disclosure and the 

name and address of the person or 

agency to which disclosure was made. 

The release of such information to the 

individual covered by the system would 

provide the individual or entity subject 

to investigation with significant 

information concerning the nature of the 

investigation and could result in the 

altering or destruction of documentary 

evidence, the improper influencing of 

witnesses, and other activities that 

could impede or compromise the 

investigation. 


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