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[Federal Register Volume 74, Number 194 (Thursday, October 8, 2009)]
[Rules and Regulations]
[Pages 51772-51777]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E9-24329]

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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 grape-growing 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

[[Page 51773]]

``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-to-southwest, 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 grape-
growing 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 north-south 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

[[Page 51774]]

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
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                     Overall       Percent cooler or warmer than Happy
       Location relative to Happy Canyon              2004            2005            2006           average                      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 west-to-east. As the 
elevation of the Santa Ynez Valley rises from west to east, the hills 
and mountains turn from a west-east 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 Toomes-Climara 
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.

[[Page 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             34.4            60.0             2.0            12.5
 of Happy Canyon)...............................
Clos Pepe (in the Sta. Rita Hills viticultural              26.0            61.0             5.0            11.6
 area, in the west end of Santa Ynez Valley)....
----------------------------------------------------------------------------------------------------------------

    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
------------------------------------------------------------------------
                                 Number of map
  Soil symbol and soil name    units/percentage      Percentage slope
                                of survey area
------------------------------------------------------------------------
   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              11/8  9 to 15 percent.
 sandy loam.
------------------------------------------------------------------------

    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-

[[Page 51776]]

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

0
For the reasons discussed in the preamble, we amend title 27 CFR, 
chapter I, 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. Subpart C is amended by adding Sec.  9.217 to read as follows:

Sec.  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 Ca[ntilde]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 
Ca[ntilde]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

[[Page 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
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