[Federal Register Volume 80, Number 41 (Tuesday, March 3, 2015)]
[Proposed Rules]
[Pages 11355-11361]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-04253]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 9

[Docket No. TTB-2015-0004; Notice No. 148]
RIN 1513-AC11


Proposed Establishment of the Los Olivos District Viticultural 
Area

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

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Alcohol and Tobacco Tax and Trade Bureau (TTB) proposes to 
establish the approximately 22,820-acre ``Los Olivos District'' 
viticultural area in Santa Barbara County, California. The proposed 
viticultural area lies entirely within the Santa Ynez Valley 
viticultural area and the larger, multicounty Central Coast 
viticultural area. TTB designates viticultural areas to allow vintners 
to better describe the origin of their wines and to allow consumers to 
better identify wines they may purchase. TTB invites comments on this 
proposed addition to its regulations.

DATES: Comments must be received by May 4, 2015.

ADDRESSES: Please send your comments on this document to one of the 
following addresses:
    <bullet> Internet: http://www.regulations.gov (via the online 
comment form for this document as posted within Docket No. TTB-2015-
0004 at ``Regulations.gov,'' the Federal e-rulemaking portal);
    <bullet> U.S. Mail: Director, Regulations and Rulings Division, 
Alcohol and Tobacco Tax and Trade Bureau, 1310 G Street NW., Box 12, 
Washington, DC 20005; or
    <bullet> Hand delivery/courier in lieu of mail: Alcohol and Tobacco 
Tax and Trade Bureau, 1310 G Street NW., Suite 200-E, Washington, DC 
20005.
    See the Public Participation section of this document for specific 
instructions and requirements for submitting comments, and for 
information on how to request a public hearing or view or request 
copies of the petition and supporting materials.

FOR FURTHER INFORMATION CONTACT: Karen A. Thornton, Regulations and 
Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G 
Street NW., Box 12, Washington, DC 20005; phone 202-453-1039, ext. 175.

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 provides that these regulations should, among 
other things, prohibit consumer deception and the use of misleading 
statements on labels and ensure that labels provide the consumer with 
adequate information as to the identity and quality of the product. The 
Alcohol and Tobacco Tax and Trade Bureau (TTB) administers the FAA Act 
pursuant to section 1111(d) of the Homeland Security Act of 2002, 
codified at 6 U.S.C. 531(d). The Secretary has delegated various 
authorities through Treasury Department Order 120-01 (Revised), dated 
December 10, 2013, to the TTB Administrator to perform the functions 
and duties in the administration and enforcement of this law.
    Part 4 of the TTB regulations (27 CFR part 4) authorizes TTB to 
define viticultural areas and sets out requirements for the use of 
their names as appellations of origin on wine labels and in wine 
advertisements. Part 9 of the TTB regulations (27 CFR part 9) sets 
forth standards for the preparation and submission to TTB of petitions 
for the establishment or modification of American viticultural areas 
(AVAs) and lists the approved AVAs.

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 having distinguishing features, as described in part 9 
of the regulations, and a name and a delineated boundary, as 
established in part 9 of the regulations. These designations allow 
vintners and consumers to attribute a given quality, reputation, or 
other characteristic of a wine made from grapes grown in an area to the 
wine's geographic origin. The establishment of AVAs allows vintners to 
describe more accurately the origin of their wines to consumers and 
helps consumers to identify wines they may purchase. Establishment of 
an AVA is neither an approval nor an endorsement by TTB of the wine 
produced in that area.

Requirements

    Section 4.25(e)(2) of the TTB regulations (27 CFR 4.25(e)(2)) 
outlines the procedure for proposing an AVA and provides that any 
interested party may petition TTB to establish a grape-growing region 
as an AVA. Section 9.12 of the TTB regulations (27 CFR 9.12) prescribes 
the standards for petitions requesting the establishment or 
modification of AVAs. Petitions to establish an AVA must include the 
following:
    <bullet> Evidence that the region within the proposed AVA boundary 
is nationally or locally known by the AVA name specified in the 
petition;
    <bullet> An explanation of the basis for defining the boundary of 
the proposed AVA;
    <bullet> A narrative description of the features of the proposed 
AVA affecting viticulture, such as climate, geology, soils, physical 
features, and elevation, that make the proposed AVA distinctive and 
distinguish it from adjacent areas outside the proposed viticultural 
AVA;
    <bullet> The appropriate United States Geological Survey (USGS) 
map(s) showing the location of the proposed AVA, with the boundary of 
the

[[Page 11356]]

proposed AVA clearly drawn thereon; and
    <bullet> A detailed narrative description of the proposed AVA 
boundary based on USGS map markings.

Los Olivos District Petition

    TTB received a petition from C. Frederic Brander, owner and 
winemaker of the Brander Vineyard, proposing the establishment of the 
approximately 22,820-acre ``Los Olivos District'' AVA in Santa Barbara 
County, California. There are 12 bonded wineries and approximately 47 
commercially producing vineyards covering a total of 1,120 acres within 
the proposed AVA. According to the petition, the distinguishing 
features of the proposed Los Olivos District AVA include its 
topography, soils, and climate. Unless otherwise noted, all information 
and data pertaining to the proposed AVA contained in this document are 
from the petition for the proposed Los Olivos District AVA and its 
supporting exhibits.
    The proposed Los Olivos District AVA includes the towns of Los 
Olivos, Solvang, Ballard, and Santa Ynez. The proposed AVA lies 
entirely within the Santa Ynez Valley AVA (27 CFR 9.54), which, in 
turn, lies within the larger, multicounty Central Coast AVA (27 CFR 
9.75). The proposed Los Olivos District AVA shares its western boundary 
with the eastern boundary of the Ballard Canyon AVA (27 CFR 9.230) and 
its eastern boundary with the western boundary of the Happy Canyon of 
Santa Barbara AVA (27 CR 9.217), but it does not overlap either of 
these AVAs.

Name Evidence

    In the late 1800s, Alden March Boyd purchased land in Santa Barbara 
County and planted a 5,000-tree olive grove he named ``Rancho Los 
Olivos.'' The community that grew up nearby took the name ``Los 
Olivos,'' after Boyd's ranch. The proposed Los Olivos District AVA 
takes its name from the ranch and the town, both of which are located 
within the boundaries of the proposed AVA. The town and the ranch 
appear on the USGS Los Olivos quadrangle map. The town of Los Olivos 
also appears on a road map of Santa Barbara County, published by the 
American Automobile Association, which was included with the petition.
    Name evidence for the proposed AVA is supported by the fact that 
several businesses use the moniker ``Los Olivos'' in their names, 
including the Los Olivos Grand Hotel, the Gallery Los Olivos, the Los 
Olivos Caf[eacute], and the Los Olivos Grocery. Additionally, several 
public institutions that serve residents within the proposed AVA use 
the name ``Los Olivos,'' including the Los Olivos Library, the Los 
Olivos Post Office, and the Los Olivos Elementary School.

Boundary Evidence

    The boundary of the proposed Los Olivos District AVA separates the 
low, relatively flat plain that comprises the proposed AVA from the 
higher elevations and more rugged and mountainous terrain that surround 
the proposed AVA in all directions. The northern portion of the 
proposed boundary follows the 1,000-foot elevation contour through the 
lower foothills of the San Rafael Mountains and approximates the point 
above which marine fog does not reach. The eastern portion of the 
proposed boundary follows straight lines drawn between points shown on 
the USGS maps and separates the proposed AVA from the canyon lands of 
the Happy Canyon of Santa Barbara AVA. The southern portion of the 
proposed boundary follows the Santa Ynez River and separates the 
proposed AVA from the Santa Ynez Mountains and the Los Padres National 
Forest. The western portion of the proposed boundary follows several 
roads and straight lines drawn between points on the USGS maps and 
separates the proposed AVA from the canyon lands of the Ballard Canyon 
AVA to the west.

Distinguishing Features

    The distinguishing features of the proposed Los Olivos District AVA 
include its topography, soils, and climate.
Topography
    According to the petition, the proposed Los Olivos District AVA is 
located on the only broad alluvial terrace plain of the Santa Ynez 
River. The topography of the proposed AVA is relatively uniform, with 
nearly flat terrain that gently slopes downward to the south. 
Elevations within the AVA range from approximately 400 feet in the 
southern portion of the proposed AVA, along the Santa Ynez River, to 
1,000 feet in the northern portion, in the foothills of the San Rafael 
Mountains.
    The petition discusses the benefits that the relatively flat, 
uniform topography of the proposed AVA has for viticulture. The lack of 
steeply sloped terrain minimizes the risk of erosion, allows vineyard 
owners more options to space vines and orient rows, and facilitates 
mechanical harvesting and tilling. The flat, open terrain also allows 
vineyards within the proposed AVA to receive uniform amounts of 
sunlight, rainfall, and temperature-moderating fog because there are no 
significant hills or mountains within the proposed AVA to block the 
rainfall and fog or to shade the vineyards.
    The proposed Los Olivos District is surrounded by higher elevations 
and mountainous terrain in all directions. To the north are the San 
Rafael Mountains, with steep slopes and elevations reaching over 2,000 
feet. To the east is the Happy Canyon of Santa Barbara AVA, which is 
marked by steeper terrain, rolling hills, and canyons. Elevations 
within the portion of the Happy Canyon of Santa Barbara AVA immediately 
adjacent to the proposed AVA reach heights of 1,600 feet. To the south 
of the proposed AVA are the Santa Ynez Mountains and the Los Padres 
National Forest, which have elevations reaching over 3,000 feet and 
steep, rugged terrain unsuitable for commercial viticulture. To the 
west of the proposed AVA is the Ballard Canyon AVA, which has rolling 
hills, maze-like canyons, and elevations reaching 1,200 feet.
Soils
    Over 95 percent of the soils within the proposed Los Olivos 
District AVA are from the Positas-Ballard-Santa Ynez soil association 
and are derived from alluvium, including Orcutt sand and terrace 
deposits. The soils are moderately to well-drained gravelly fine sandy 
loams and clay loams with low to moderate fertility.
    According to the petition, the soils found in the proposed Los 
Olivos District AVA are well-suited for viticulture. The soils drain 
well enough that the vines are not susceptible to root disease and 
chlorosis but do not drain so excessively as to require frequent 
irrigation. Soil nutrient levels within the proposed AVA are adequate 
to produce healthy vines and fruit without promoting excessive growth. 
Finally, the uniformity of the soils throughout the proposed Los Olivos 
District AVA results in a greater consistency in growing conditions for 
vineyards than is found in regions with greater soil variations.
    To the north of the proposed Los Olivos District AVA, within the 
San Rafael Mountains, approximately 95 percent of the soils are of the 
Chamise-Arnold-Crow Hill association, which is described as well-
drained to excessively drained and very low to moderately fertile. To 
the east and south of the proposed AVA, the soils are more diverse. 
Within the Happy Canyon of Santa Barbara AVA, to the east of the 
proposed AVA, approximately 40 percent of the soils are from the 
Positas-Ballard-Santa Ynez association. The

[[Page 11357]]

remaining 60 percent of the soils are from the Chamise-Arnold-Crow 
Hill, the Shedd-Santa Lucia-Diablo, and the Toomes-Climara 
associations, which are all well-drained to excessively drained and 
range from very low to highly fertile. To the south of the proposed 
AVA, within the Santa Ynez Mountains, approximately 60 percent of the 
soils are from the Los Osos-Gaviota association, which is described as 
well-drained to excessively drained and very low to moderately fertile. 
The remaining 40 percent of the soils is a combination of soils from 
Shedd-Santa Lucia-Diablo association and sedimentary rock that is not 
suitable for viticulture. To the west, within the Ballard Canyon AVA, 
approximately 95 percent of the soils are from the Chamise-Arnold-Crow 
Hill association, which are characterized as being well-drained to 
excessively drained and having very low to moderately low fertility.
Climate
    Within the Central Coast AVA, where the proposed Los Olivos 
District AVA is located, temperatures are affected by cooling marine 
fog. Locations close to the Pacific Ocean have heavy marine fog, while 
locations farther inland, such as the proposed AVA, receive less fog. 
In general, marine fog contributes to cool daytime temperatures and 
warm nighttime temperatures. Because the proposed Los Olivos District 
AVA is located about 30 miles inland from the Pacific Ocean, much of 
the marine fog has diminished by the time it reaches the proposed AVA 
in the late afternoon. However, enough fog remains to moderate the 
evening and nighttime temperatures. Due to the flat, open topography, 
the fog circulates freely throughout the entire proposed AVA.
    In locations where fog is present throughout most of the day, the 
difference between the daily high and daily low temperatures (diurnal 
temperature variation) is usually smaller than in regions where fog is 
less prevalent because fog lowers the daytime temperatures and warms 
the nighttime temperatures. The following table shows the average 
monthly diurnal temperature variation during the growing season 
measured at weather stations in the proposed Los Olivos District AVA 
and in regions to the east and west. Data was not available for 
locations to the north and south of the proposed AVA.

                                  Average Monthly Diurnal Temperature Variation
                                              [Degrees Fahrenheit]
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                                                           Ballard Canyon     Santa Ynez \3\    Cachuma Lake \4\
                Month                  Lompoc \1\ (West   AVA \2\ (West of   (Within proposed  (East of proposed
                                       of proposed AVA)    proposed AVA)           AVA)               AVA)
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April...............................                 23                 28                 30               29.6
May.................................               20.5                 30               28.5               30.8
June................................                 20                 33               29.6               34.6
July................................               19.1                 37               30.5               38.4
August..............................               19.3                 38               31.9               38.1
September...........................               22.1                 37               32.8               36.9
October.............................               25.5                 33               34.0               34.2
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    The data shows that the proposed Los Olivos District AVA generally 
has smaller average monthly diurnal temperature variations than the 
region farther inland (Cachuma Lake) and greater average monthly 
variations than the region closer to the coast (Lompoc). Lompoc, which 
is located only 9 miles from the Pacific Ocean, has smaller average 
monthly diurnal temperature variations than the proposed AVA because 
the marine fog is heavy throughout the entire day, keeping daytime 
highs cool and allowing for only small drops in nighttime temperatures. 
From May through September, Cachuma Lake has greater average monthly 
diurnal temperature variations than the proposed AVA because the lake 
is farther from the ocean (approximately 36 miles). The marine fog has 
largely dissipated by the time it reaches Cachuma Lake, allowing 
daytime temperatures to rise higher and nighttime temperatures to drop 
lower than within the proposed AVA. During April and October, fog is 
lighter and occurs less frequently within the proposed AVA, so the 
diurnal temperature variations within the proposed AVA are similar to 
those at Cachuma Lake. The Ballard Canyon AVA is closer to the ocean 
than the proposed AVA, but the hills and canyons block much of the fog 
from entering the Ballard Canyon AVA. As a result, the Ballard Canyon 
AVA has generally greater diurnal temperature variations than the 
proposed Los Olivos District AVA.
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    \1\ Source: Western Regional Climate Center period of record 
monthly climate summary, 1917-present. See www.wrcc.dri.edu.
    \2\ Source: Petition to Establish the Ballard Canyon AVA; data 
collected from 2005, 2008, and 2009. See http://www.regulations.gov/#!documentDetail;D=TTB-2013-0001-0002.
    \3\ Source: California Irrigation Management Information System 
Weather Station #64, Santa Ynez, from 1986-present. See University 
of California IPM Online at www.ucipm.ucdavis.edu/WEATHER/index.html.
    \4\ Source: Western Regional Climate Center period of record 
monthly climate summary, 1951-present. See www.wrcc.dri.edu.
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    According to the petition, diurnal temperature variations during 
the growing season affect viticulture. Warm daytime temperatures 
encourage fruit maturation and sugar production, and cool nighttime 
temperatures minimize acid loss. Therefore, grapes in regions with 
large diurnal temperature variations ripen faster and have higher 
levels of sugar and acid than regions with smaller diurnal temperature 
variations. Additionally, because regions with large diurnal 
temperature variations generally have less fog, grapes in those regions 
are not at as great a risk of mildew or fungal diseases as areas with 
heavier fog and smaller diurnal temperature variations.
    The petition also included a summary of growing degree day (GDD) 
data \5\ gathered during the 2007-2012 growing seasons for the proposed 
Los Olivos District AVA and the regions to the north, east, and west. 
Data was not available for the region to the south.
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    \5\ Growing Degree Day data was measured using the University of 
California Cooperative Extension method, which collects temperature 
data hourly in degrees Celsius. One GDD unit accumulates for each 
degree Celsius the hourly temperature reading is over the baseline 
of 10 degrees Celsius, the temperature below which there is 
virtually no growth in grape vines.

[[Page 11358]]



                                                             Summary of Growing Degree Days
                                                                    [Degrees Celsius]
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            Location (direction from proposed AVA)                 2007         2008         2009         2010         2011         2012       Average
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Proposed Los Olivos District AVA.............................        1,534        1,688        1,652        1,406        1,479        1,617        1,563
Ballard Canyon AVA (West)....................................        1,140        1,546        1,540        1,314        1,397        1,494        1,450
Happy Canyon of Santa Barbara AVA (East).....................        1,592        1,743        1,697        1,443        1,525        1,629        1,605
San Rafael Mountains (North).................................        1,748        1,952        1,850        1,521        1,587        1,753        1,735
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    The data shows that the proposed Los Olivos District AVA has more 
growing degree days than the region to the immediate west and fewer 
than the regions to the north and east. According to the petition, GDD 
accumulation influences the grape varietals grown in a region. Warm 
regions typically grow Bordeaux and Rhone varietals, such as cabernet 
sauvignon and syrah, both of which are commonly grown within the 
proposed AVA. Additionally, warm temperatures promote vigorous vine 
growth and large leaf canopies, which affect decisions on row spacing, 
trellis design, pruning, and canopy management.
Summary of Distinguishing Features
    In summary, the topography, soils, and climate of the proposed Los 
Olivos District AVA distinguish it from the surrounding regions. The 
proposed AVA is located on a broad alluvial plain. The terrain is open 
and flat, which reduces the risk of erosion and allows for the use of 
mechanized harvesting and tilling equipment in the vineyards. The open 
terrain also allows thin marine fog to circulate freely through the 
proposed AVA. The fog moderates temperatures, preventing the grapes 
from developing levels of sugars and acids that are too high. The 
moderate temperatures allow for a growing degree day accumulation that 
is high enough to grow warm climate varietals, including cabernet 
sauvignon and syrah. Finally, the soils within the proposed AVA are 
moderately drained to well-drained and have low to moderate fertility 
levels. As a result, vines are at a low risk for root disease or 
excessive growth, and vineyards do not require frequent irrigation.
    To the north, the high elevations of the San Rafael Mountains are 
above the fog line, and the terrain is higher, steeper, and more 
susceptible to erosion than the flat, gently sloping terrain of the 
proposed Los Olivos District AVA. To the east, the canyons and steeper 
terrain of the Happy Canyon of Santa Barbara AVA prevent marine fog 
from entering the AVA, resulting in higher GDD accumulations than 
within the proposed AVA. Additionally, the steepness of the terrain 
makes mechanized harvesting and tilling less practical than within the 
proposed AVA. To the south, the Santa Ynez Mountains and the Los Padres 
National Forest have high, rugged, steep terrain and rocky soils, 
making the region less suitable for viticulture than the proposed AVA. 
To the west, the Ballard Canyon AVA has rolling hills and maze-like 
canyons that block much of the marine fog from entering, resulting in 
greater average diurnal temperature variations than within the proposed 
AVA.

Comparison of the Proposed Los Olivos District AVA to the Existing 
Santa Ynez Valley and Central Coast AVAs

Santa Ynez Valley AVA
    The Santa Ynez Valley AVA was established by T.D. ATF-132, which 
was published in the Federal Register on April 15, 1983 (48 FR 16252). 
The Santa Ynez Valley AVA encompasses the Sta. Rita Hills AVA, the 
Ballard Canyon AVA, and the Happy Canyon of Santa Barbara AVA, as well 
as the proposed Los Olivos District AVA. According to T.D. ATF-132, the 
Santa Ynez Valley AVA is a valley that surrounds the Santa Ynez River 
and is bound by the Purisima Hills and San Rafael Mountains to the 
north, Cachuma Lake to the east, the Santa Ynez Mountains to the south, 
and the Santa Rita Hills to the west. Vineyards are planted on 
elevations ranging from 200 feet along the Santa Ynez River to 1,500 
feet in the foothills of the San Rafael Mountains. The Santa Ynez 
Valley AVA has seven major soil associations, but vineyards are 
primarily planted on soils from the Positas-Ballard-Santa Ynez, 
Chamise-Arnold-Crow Hill, Shedd-Santa Lucia-Diablo, and Sorrento-Mocho-
Camarillo associations. Temperatures within the Santa Ynez Valley AVA 
are generally warmer and less influenced by coastal breezes and fog 
than the region closer to the coast because the hills to the west of 
the AVA prevent much of the marine influence from reaching deep into 
the valley. Even without a heavy marine influence, fog is still common 
at elevations between 1,000 and 1,200 feet within the Santa Ynez Valley 
AVA.
    The proposed Los Olivos District AVA is located at the center of 
the Santa Ynez Valley AVA and shares some broad characteristics with 
the established AVA. Like much of the Santa Ynez Valley AVA, the 
proposed Los Olivos District AVA receives some marine fog from the 
Pacific Ocean. However, due to its central location, the proposed AVA 
is warmer than regions within the western portion of the Santa Ynez 
Valley AVA (such as the Sta. Rita Hills AVA) and cooler than regions 
within the eastern portion (such as the Happy Canyon of Santa Barbara 
AVA). The fairly level alluvial plain topography of the proposed AVA is 
more uniform than the topography of the larger Santa Ynez Valley AVA, 
which also includes mountains and canyons. In contrast to the varied 
soils of the Santa Ynez Valley AVA, the proposed Los Olivos District 
AVA soils are predominately from the Positas-Ballard-Santa Ynez 
association.
Central Coast AVA
    The large, 1 million-acre Central Coast AVA was established by T.D. 
ATF-216, which was published in the Federal Register on October 24, 
1985 (50 FR 43128). The Central Coast AVA encompasses all or portions 
of the California counties of Contra Costa, Alameda, San Francisco, San 
Mateo, Santa Clara, Santa Cruz, San Benito, Monterey, San Luis Obispo, 
and Santa Barbara, and it contains 28 established AVAs. T.D. ATF-216 
describes the Central Coast viticultural area as extending from Santa 
Barbara to the San Francisco Bay area and east to the California 
Coastal Ranges. The distinguishing feature of the Central Coast AVA 
addressed in T.D. ATF-216 is that all of the included counties 
experience marine climate influence due to their proximity to the 
Pacific Ocean.
    The proposed Los Olivos District AVA, located within Santa Barbara 
County, is also located within the Central Coast AVA. Marine fog, which 
is the primary characteristic of the Central Coast AVA, is present 
within

[[Page 11359]]

the proposed AVA during the growing season. However, due to its smaller 
size, the proposed viticultural area has greater uniformity in 
geographical features, such as topography, climate, and soils, than the 
larger Central Coast AVA.

TTB Determination

    TTB concludes that the petition to establish the approximately 
22,820-acre Los Olivos District AVA merits consideration and public 
comment, as invited in this document of proposed rulemaking.

Boundary Description

    See the narrative description of the boundary of the petitioned-for 
AVA in the proposed regulatory text published at the end of this 
proposed rule.
    TTB notes that although narrative descriptions of AVA boundaries 
usually follow a clockwise direction, the proposed Los Olivos District 
AVA boundary description follows a counterclockwise direction in order 
to align the proposed eastern boundary more easily with the western 
boundary of the established Happy Canyon of Santa Barbara AVA.

Maps

    The petitioner provided the required maps, and they are listed 
below in the proposed 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. For a wine to be labeled with an AVA name or with a 
brand name that includes an AVA name or other term identified as 
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 Sec.  4.25(e)(3) of the TTB regulations (27 
CFR 4.25(e)(3)). If the wine is not eligible for labeling with an AVA 
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 AVA 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. Different rules 
apply if a wine has a brand name containing an AVA name or other 
viticulturally significant term that was used as a brand name on a 
label approved before July 7, 1986. See Sec.  4.39(i)(2) of the TTB 
regulations (27 CFR 4.39(i)(2)) for details.
    If TTB establishes this proposed AVA, its name, ``Los Olivos 
District,'' will be recognized as a name of viticultural significance 
under Sec.  4.39(i)(3) of the TTB regulations (27 CFR 4.39(i)(3)). TTB 
also believes that the term ``Los Olivos,'' standing alone, has 
viticultural significance, as this name appears to be primarily 
associated with the grape-growing and wine-producing region of the 
proposed AVA. Therefore, if TTB establishes this proposed AVA, the term 
``Los Olivos'' also will be recognized as a term of viticultural 
significance under 27 CFR 4.39(i)(3). The text of the proposed 
regulation clarifies this point. Consequently, wine bottlers using the 
name ``Los Olivos District'' or ``Los Olivos'' in a brand name, 
including a trademark, or in another label reference as to the origin 
of the wine, would have to ensure that the product is eligible to use 
the AVA name as an appellation of origin if this proposed rule is 
adopted as a final rule.
    The approval of the proposed Los Olivos District AVA would not 
affect any existing AVA, and any bottlers using ``Central Coast'' or 
``Santa Ynez Valley'' as an appellation of origin or in a brand name 
for wines made from grapes grown within the Central Coast AVA or Santa 
Ynez Valley would not be affected by the establishment of this new AVA. 
The establishment of the proposed Los Olivos District AVA would allow 
vintners to use ``Los Olivos District,'' ``Santa Ynez Valley,'' and 
``Central Coast'' as appellations of origin for wines made from grapes 
grown within the proposed Los Olivos District AVA, if the wines meet 
the eligibility requirements for the appellation.

Public Participation

Comments Invited

    TTB invites comments from interested members of the public on 
whether it should establish the proposed AVA. TTB is also interested in 
receiving comments on the sufficiency and accuracy of the name, 
boundary, soils, climate, and other required information submitted in 
support of the petition. In addition, given the proposed Los Olivos 
District AVA's location within the existing Central Coast AVA and Santa 
Ynez Valley AVA, TTB is interested in comments on whether the evidence 
submitted in the petition regarding the distinguishing features of the 
proposed AVA sufficiently differentiates it from the existing Central 
Coast AVA and Santa Ynez Valley AVA. TTB is also interested in comments 
on whether the geographic features of the proposed AVA are so 
distinguishable from the surrounding Central Coast AVA and Santa Ynez 
Valley AVA that the proposed Los Olivos District AVA should no longer 
be part of those AVAs. Please provide any available specific 
information in support of your comments.
    Because of the potential impact of the establishment of the 
proposed Los Olivos District AVA on wine labels that include the term 
``Los Olivos District'' or ``Los Olivos'' as discussed above under 
Impact on Current Wine Labels, TTB is particularly interested in 
comments regarding whether there will be a conflict between the 
proposed AVA name and currently used brand names. If a commenter 
believes that a conflict will arise, the comment should describe the 
nature of that conflict, including any anticipated negative economic 
impact that approval of the proposed AVA will have on an existing 
viticultural enterprise. TTB is also interested in receiving 
suggestions for ways to avoid conflicts, for example, by adopting a 
modified or different name for the AVA.

Submitting Comments

    You may submit comments on this document by using one of the 
following three methods:
    <bullet> Federal e-Rulemaking Portal: You may send comments via the 
online comment form posted with this document within Docket No. TTB-
2015-0004 on ``Regulations.gov,'' the Federal e-rulemaking portal, at 
http:[sol][sol]www.regulations.gov. A direct link to that docket is 
available under Notice No. 148 on the TTB Web site at 
http:[sol][sol]www.ttb.gov/wine/wine-rulemaking.shtml. Supplemental 
files may be attached to comments submitted via Regulations.gov. For 
complete instructions on how to use Regulations.gov, visit the site and 
click on the ``Help'' tab.
    <bullet> U.S. Mail: You may send comments via postal mail to the 
Director, Regulations and Rulings Division, Alcohol and Tobacco Tax and 
Trade Bureau, 1310 G Street NW., Box 12, Washington, DC 20005.
    <bullet> Hand Delivery/Courier: You may hand-carry your comments or 
have them hand-carried to the Alcohol and Tobacco Tax and Trade Bureau, 
1310 G Street NW., Suite 200-E, Washington, DC 20005.
    Please submit your comments by the closing date shown above in the 
DATES section of this document. Your comments must reference Notice No. 
148 and include your name and mailing address. Your comments also must 
be made in English, be legible, and be written in language acceptable 
for

[[Page 11360]]

public disclosure. TTB does not acknowledge receipt of comments, and 
TTB considers all comments as originals.
    In your comment, please clearly state if you are commenting for 
yourself or on behalf of an association, business, or other entity. If 
you are commenting on behalf of an entity, your comment must include 
the entity's name, as well as your name and position title. If you 
comment via Regulations.gov, please enter the entity's name in the 
``Organization'' blank of the online comment form. If you comment via 
postal mail or hand delivery/courier, please submit your entity's 
comment on letterhead.
    You may also write to the Administrator before the comment closing 
date to ask for a public hearing. The Administrator reserves the right 
to determine whether to hold a public hearing.

Confidentiality

    All submitted comments and attachments are part of the public 
record and subject to disclosure. Do not enclose any material in your 
comments that you consider to be confidential or inappropriate for 
public disclosure.

Public Disclosure

    TTB will post, and you may view, copies of this document, selected 
supporting materials, and any online or mailed comments received about 
this proposal within Docket No. TTB-2015-0004 on the Federal e-
rulemaking portal, Regulations.gov, at http://www.regulations.gov. A 
direct link to that docket is available on the TTB Web site at http://www.ttb.gov/wine/wine_rulemaking.shtml under Notice No. 148. You may 
also reach the relevant docket through the Regulations.gov search page 
at http://www.regulations.gov. For information on how to use 
Regulations.gov, click on the site's ``Help'' tab.
    All posted comments will display the commenter's name, organization 
(if any), city, and State, and, in the case of mailed comments, all 
address information, including email addresses. TTB may omit voluminous 
attachments or material that the Bureau considers unsuitable for 
posting.
    You may also view copies of this document, all related petitions, 
maps and other supporting materials, and any electronic or mailed 
comments that TTB receives about this proposal by appointment at the 
TTB Information Resource Center, 1310 G Street NW., Washington, DC 
20005. You may also obtain copies at 20 cents per 8.5 x 11-inch page. 
Please note that TTB is unable to provide copies of USGS maps or other 
similarly-sized documents that may be included as part of the AVA 
petition. Contact TTB's information specialist at the above address or 
by telephone at 202-453-2270 to schedule an appointment or to request 
copies of comments or other materials.

Regulatory Flexibility Act

    TTB certifies that this proposed regulation, if adopted, would not 
have a significant economic impact on a substantial number of small 
entities. The proposed regulation imposes no new reporting, 
recordkeeping, or other administrative requirement. Any benefit derived 
from the use of a viticultural area name would be 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

    It has been determined that this proposed rule is not a significant 
regulatory action as defined by Executive Order 12866 of September 30, 
1993. Therefore, no regulatory assessment is required.

Drafting Information

    Karen A. Thornton of the Regulations and Rulings Division drafted 
this notice of proposed rulemaking.

List of Subjects in 27 CFR Part 9

    Wine.

Proposed Regulatory Amendment

    For the reasons discussed in the preamble, TTB proposes to amend 
title 27, chapter I, part 9, Code of Federal Regulations, 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.___ to read as follows:


Sec.  9.  Los Olivos District.

    (a) Name. The name of the viticultural area described in this 
section is ``Los Olivos District''. For purposes of part 4 of this 
chapter, ``Los Olivos District'' and ``Los Olivos'' are terms of 
viticultural significance.
    (b) Approved maps. The four United States Geological Survey (USGS) 
1:24,000 scale topographic maps used to determine the boundary of the 
Los Olivos District viticultural area are titled:
    (1) Los Olivos, CA, 1995;
    (2) Zaca Creek, Calif., 1959;
    (3) Solvang, CA, 1995; and
    (4) Santa Ynez, CA, 1995.
    (c) Boundary. The Los Olivos District viticultural area is located 
in Santa Barbara County, California. The boundary of the Los Olivos 
District viticultural area is as described below:
    (1) The beginning point is on the Los Olivos map at the 
intersection of Foxen Canyon Road with California State Road 154 (known 
locally as San Marcos Pass Road/Chumash Highway), section 23, T7N/R31W.
    (2) From the beginning point, proceed southwesterly in a straight 
line approximately 0.3 mile, crossing onto the Zaca Creek map, to the 
intersection of Ballard Canyon Road and an unnamed, unimproved road 
known locally as Los Olivos Meadows Drive, T7N/R31W; then
    (3) Proceed south-southeasterly in a straight line approximately 1 
mile, crossing onto the Los Olivos map, to a marked, unnamed structure 
within a circular-shaped 920-foot contour line in the southwest corner 
of section 26, T7N/R31W; then
    (4) Proceed south-southwesterly in a straight line approximately 
1.25 miles, crossing onto the Zaca Creek map, to the point marked by 
the ``Ball'' 801-foot elevation control point, T6N/R31W; then
    (5) Proceed south-southwesterly in a straight line approximately 
1.45 miles, crossing onto the Solvang map, to a marked, unnamed 775-
foot peak, T6N/R31W; then
    (6) Proceed south-southwesterly in a straight line approximately 
0.55 mile to a marked communication tower located within the 760-foot 
contour line, T6N/R31W; then
    (7) Proceed south in a straight line approximately 0.6 mile to the 
intersection of Chalk Hill Road with an unnamed creek descending from 
Adobe Canyon, northwest of the unnamed road known locally as 
Fredensborg Canyon Road, T6N/R31W; then
    (8) Proceed southwesterly (downstream) along the creek 
approximately 1 mile to the creek's intersection with the Santa Ynez 
River, T6N/R31W; then
    (9) Proceed easterly (upstream) along the Santa Ynez River 
approximately 8 miles, crossing onto the Santa Ynez map, to the river's 
intersection with State Highway 154, T6N/R30W; then
    (10) Proceed north-northwest in a straight line approximately 1.2 
miles to the marked 924-foot elevation point, T6R/R30W; then

[[Page 11361]]

    (11) 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 contour 
line, west of Happy Canyon Road, T6R/R30W; then
    (12) Proceed north-northwest in a straight line for 0.5 mile, 
crossing onto the Los Olivos map, and continuing approximately 2.3 
miles to the third intersection of the line with the 1,000-foot contour 
line northwest of BM 812, T7N/R30W; then
    (13) Proceed westerly along the meandering 1,000-foot contour line 
to the contour line's intersection with an unnamed, unimproved road, an 
unnamed light-duty road, and the northern boundary line of section 23, 
T7N/R31W; then
    (14) Proceed northerly, then westerly, along the unnamed, 
unimproved road to Figueroa Mountain Road, near the marked 895-foot 
elevation, T7N/R31W; then
    (15) Proceed north on Figueroa Mountain Road approximately 400 feet 
to the 920-foot contour line, T7N/R31W; then
    (16) Proceed initially south, then northeasterly along the 
meandering 920-foot contour line, crossing onto the Zaca Creek map, to 
Foxen Canyon Road, T7N/R31W; then
    (17) Proceed southeasterly on Foxen Canyon Road approximately 1.7 
miles, crossing onto the Los Olivos map, returning to the beginning 
point.

    Dated: February 23, 2015.
John J. Manfreda,
Administrator.
[FR Doc. 2015-04253 Filed 3-2-15; 8:45 am]
BILLING CODE 4810-31-P