Federal Register / Vol. 86, No. 115 / Thursday, June 17, 2021 / Rules and Regulations 32189 

Lakes map, to the intersection of the 

elevation contour with an unimproved 

road in the southeast corner of section 

32, T14N/T29E; then 

(6) Proceed east along the unimproved 

road for 100 feet to its intersection with 

an unnamed light-duty improved road 

known locally as Albany Road; then 

(7) Proceed south along Albany Road, 

crossing onto the Basin City map, to the 

road’s intersection with an unnamed 

improved light-duty road known locally 

as Basin Hill Road along the southern 

boundary of section 21, T13N/R29E; 

then 

(8) Proceed south in a straight line for 

2 miles to an improved light-duty road 

known locally as W. Klamath Road; 

then 

(9) Proceed east along W. Klamath 

Road, crossing onto the Mesa West map, 

to the road’s intersection with another 

improved light-duty road known locally 

as Drummond Road; then 

(10) Proceed north along Drummond 

Road for 0.75 mile to its intersection 

with a railroad; then 

(11) Proceed easterly along the 

railroad to its intersection with an 

improved light-duty road known locally 

as Langford Road in the northeastern 

corner of section 4, T12N/R30E; then 

(12) Proceed south along Langford 

Road for 0.5 mile to its intersection with 

the 800-foot elevation contour; then 

(13) Proceed southwesterly along the 

800-foot elevation contour, crossing 

onto the Eltopia map, to the contour’s 

intersection with Eltopia West Road; 

then 

(14) Proceed east along Eltopia West 

Road to its intersection with the 700- 

foot elevation contour; then 

(15) Proceed southerly, then northerly 

along the 700-foot elevation contour, 

circling Jackass Mountain, to the 

contour’s intersection with Dogwood 

Road; then 

(16) Proceed west along Dogwood 

Road for 1.1 mile, crossing onto the 

Matthews Corner map, to the road’s 

intersection with the 750-foot elevation 

contour; then 

(17) Proceed southwesterly along the 

750-foot elevation contour to its 

intersection with Taylor Flats Road; 

then 

(18) Proceed south along Taylor Flats 

Road, crossing onto the Columbia Point 

map, to the road’s intersection with 

Birch Road; then 

(19) Proceed west along Birch Road 

for 1 mile to its intersection with Alder 

Road; then 

(20) Proceed south along Alder Road 

for 0.7 mile to its intersection with the 

550-foot elevation contour; then 

(21) Proceed westerly along the 550- 

foot elevation contour to its intersection 

with Sagemoor Road; then 

(22) Proceed westerly along Sagemoor 

Road for 0.7 mile, crossing onto the 

Richland map and returning to the 

beginning point. 

Signed: January 4, 2021. 

Mary G. Ryan, 

Administrator. 

Approved: January 1, 2021. 

Timothy E. Skud, 

Deputy Assistant Secretary (Tax, Trade, and 

Tariff Policy). 

[FR Doc. 2021–12769 Filed 6–16–21; 8:45 am] 

BILLING CODE 4810–31–P 

DEPARTMENT OF THE TREASURY 

Alcohol and Tobacco Tax and Trade 

Bureau 

27 CFR Part 9 

[Docket No. TTB–2020–0003; T.D. TTB–166; 

Ref: Notice No. 188] 

RIN 1513–AC70 

Establishment of the Palos Verdes 

Peninsula Viticultural Area 

AGENCY: Alcohol and Tobacco Tax and 

Trade Bureau, Treasury. 

ACTION: Final rule; Treasury decision. 

SUMMARY: The Alcohol and Tobacco Tax 

and Trade Bureau (TTB) establishes the 

approximately 15,900-acre ‘‘Palos 

Verdes Peninsula’’ viticultural area in 

the southwestern coastal region of Los 

Angeles County, California. The Palos 

Verdes Peninsula viticultural area is not 

located within, nor does it contain, any 

established 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. 

DATES: This final rule is effective July 

19, 2021. 

FOR FURTHER INFORMATION CONTACT: 

Karen A. Thornton, Regulations and 

Rulings Division, Alcohol and Tobacco 

Tax and Trade Bureau, 1310 G Street 

NW, Box 12, Washington, DC 20005; 

phone 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 the functions 

and duties in the administration and 

enforcement of these provisions to the 

TTB Administrator through Treasury 

Order 120–01, dated December 10, 2013 

(superseding Treasury Order 120–01, 

dated January 24, 2003). 

Part 4 of the TTB regulations (27 CFR 

part 4) authorizes TTB to establish 

definitive viticultural areas and regulate 

the use of their names as appellations of 

origin on wine labels and in wine 

advertisements. Part 9 of the TTB 

regulations (27 CFR part 9) sets forth 

standards for the preparation and 

submission to TTB of petitions for the 

establishment or modification of 

American viticultural areas (AVAs) and 

lists the approved AVAs. 

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 grapegrowing region as an AVA. Section 9.12 

of the TTB regulations (27 CFR 9.12) 

prescribes standards for petitions for the 

establishment or modification of AVAs. 

Petitions to establish an AVA must 

include the following: 

• Evidence that the area within the 

proposed AVA boundary is nationally 

or locally known by the AVA name 

specified in the petition; 


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32190 Federal Register / Vol. 86, No. 115 / Thursday, June 17, 2021 / Rules and Regulations 

• An explanation of the basis for 

defining the boundary of the proposed 

AVA; 

• A narrative description of the 

features of the proposed AVA affecting 

viticulture, such as climate, geology, 

soils, physical features, and elevation, 

that make the proposed AVA distinctive 

and distinguish it from adjacent areas 

outside the proposed AVA; 

• The appropriate United States 

Geological Survey (USGS) map(s) 

showing the location of the proposed 

AVA, with the boundary of the 

proposed AVA clearly drawn thereon; 

and 

• A detailed narrative description of 

the proposed AVA boundary based on 

USGS map markings. 

Palos Verdes Peninsula Petition 

TTB received a petition from James 

York, owner of Catalina View Wines, on 

behalf of the Palos Verdes Peninsula 

Winegrowers, proposing to establish the 

‘‘Palos Verdes Peninsula’’ AVA. The 

proposed AVA is located in Los Angeles 

County, California, and includes the 

cities of Palos Verdes Estates, Rolling 

Hills Estates, Rancho Palos Verdes, and 

Rolling Hills, California. The proposed 

AVA is not located within, nor does it 

contain, any established AVA. Within 

the 15,900-acre proposed AVA, there are 

7 acres of commercial vineyards. The 

distinguishing features of the proposed 

Palos Verdes Peninsula AVA are its 

geology, soils, topography, and climate. 

The proposed Palos Verdes Peninsula 

AVA is located on an isolated upland 

peninsula created by tectonic uplift and 

volcanic activity. Periods of intense 

geologic activity subjected the region of 

the proposed AVA to repeated cycles of 

uplift, erosion, submersion, and 

deposition. The submersion process laid 

down significant amounts of marine 

deposits, which contributed to the soil 

composition. Uplift created new lands, 

while erosion wore away the newlyformed lands to create the series of 

marine terraces that characterize the 

region’s topography today. The geology 

of the proposed AVA consists primarily 

of the Monterey Formation and ancient 

landslides, which formed the basis for 

two of the primary soils of the proposed 

AVA—Altamont Clay Adobe and 

Altamont Clay Loam. A third soil 

commonly found in the proposed AVA 

is the Diablo Clay Adobe. These three 

soils are rich in clays, adobe, and loamy 

clay and contain high amounts of 

calcium. The soils retain moisture in 

dry weather while allowing for good 

drainage. According to the petition, the 

levels of calcium in the soils produce 

thicker grape skins than are found on 

the same grape varietals grown in noncalcareous soils. The thicker grape skins 

increase the amount of color, flavor, and 

aromatics in the resulting wine. 

The topography of the proposed Palos 

Verdes Peninsula AVA consists of a low 

altitude mountain of the Coast Range 

situated between the Los Angeles Plain 

and the Pacific Ocean. Rolling hills, 

incised canyons, and coastal bluffs and 

terraces cover the proposed AVA. 

Elevations range from sea level on the 

western and southern edges of the 

proposed AVA to about 1,460 feet above 

sea level at San Pedro Hill, which is 

located near the eastern/central area of 

the Palos Verdes Hills. The slope angles 

of the vineyards in the proposed AVA 

range from gentle to high (0–50%). 

Terracing the vineyards that are planted 

on steeper slopes allows for drainage/ 

erosion control, equipment access, and 

optimal solar orientation. The moderate 

slopes within the proposed AVA 

promote air flow to minimize mildew 

and frost risk and also allow for 

drainage of excess water. The aspects of 

the vineyard slopes face south, 

southeast, and southwest, providing 

year-round solar exposure. South-facing 

and southwest-facing slopes promote 

earlier bud break, bloom, and harvest 

than other aspects. Southeast-facing 

slopes bring morning radiation for soil 

warmth and canopy growth. 

The climate of the proposed Palos 

Verdes Peninsula AVA is 

‘‘Mediterranean warm,’’ which is 

characterized by warm, dry summers 

and mild winters with limited rainfall. 

Average monthly high temperatures 

within the proposed AVA range from 63 

to 74 degrees Fahrenheit (F), and 

average monthly low temperatures range 

from 48 to 62 degrees F. Extreme 

monthly highs range from 74 to 84 

degrees F, and extreme monthly lows 

range from 46 to 60 degrees. Average 

annual rainfall within the proposed 

AVA is 14.03 inches. According to the 

petition, these climatic conditions are 

suitable for growing grape varietals such 

as Pinot Noir, Chardonnay, Merlot, and 

Cabernet Sauvignon. 

To the south and west of the proposed 

Palos Verdes Peninsula AVA is the 

Pacific Ocean. To the north, northeast, 

and east of the proposed AVA are 

relatively flat lowland areas with 

elevations ranging from sea level to 

about 500 feet and slope angles of 25 

percent or less. These lowland regions 

experienced less intense levels of 

tectonic uplift and volcanic activity, and 

the geology consists mainly of surficial 

sediments, older surficial sediments, 

and shallow marine sediments. Soils to 

the north, northeast, and east of the 

proposed AVA have lower levels of clay 

and calcium than the soils of the 

proposed AVA. Monthly average 

temperatures in the regions surrounding 

the proposed AVA are generally 

warmer, ranging between 4 and 6 

degrees F higher in the colder months 

and between 5 and 8 degrees F higher 

in the warmer months. The average 

highest and lowest monthly 

temperatures in the surrounding regions 

are also more extreme than those within 

the proposed Palos Verdes Peninsula. 

Finally, the average annual rainfall 

amounts are generally lower in the 

regions surrounding the proposed AVA. 

Notice of Proposed Rulemaking and 

Comments Received 

TTB published Notice No. 188 in the 

Federal Register on May 26, 2020 (85 

FR 31416), proposing to establish the 

Palos Verde Peninsula AVA. In the 

notice, TTB summarized the evidence 

from the petition regarding the name, 

boundary, and distinguishing features 

for the proposed AVA. The notice also 

compared the distinguishing features of 

the proposed AVA to the surrounding 

areas. For a detailed description of the 

evidence relating to the name, 

boundary, and distinguishing features of 

the proposed AVA, and for a detailed 

comparison of the distinguishing 

features of the proposed AVA to the 

surrounding areas, see Notice No. 188. 

In Notice No. 188, TTB solicited 

comments on the accuracy of the name, 

boundary, and other required 

information submitted in support of the 

petition. The comment period closed 

July 27, 2020. 

In response to Notice No. 188, TTB 

received a total of four comments. The 

commenters included local wine 

industry members and a former member 

of the Rancho Palos Verdes Planning 

Commission. All of the comments 

supported the establishment of the 

proposed Palos Verdes Peninsula AVA. 

Two of the comments expressed support 

for the proposed AVA due to its unique 

characteristics (comments 3 and 4), one 

comment supported the proposal due to 

the quality of wines produced from 

grapes grown in the region (comment 1), 

and the fourth comment expressed 

general support for the proposal without 

offering an explanation (comment 2). 

TTB Determination 

After careful review of the petition 

and the comments received in response 

to Notice No. 188, TTB finds that the 

evidence provided by the petitioner 

supports the establishment of the Palos 

Verdes Peninsula AVA. Accordingly, 

under the authority of the FAA Act, 

section 1111(d) of the Homeland 

Security Act of 2002, and parts 4 and 9 

of the TTB regulations, TTB establishes 


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Federal Register / Vol. 86, No. 115 / Thursday, June 17, 2021 / Rules and Regulations 32191 

the ‘‘Palos Verdes Peninsula’’ AVA in 

Los Angeles County, California, 

effective 30 days from the publication 

date of this document. 

Boundary Description 

See the narrative description of the 

boundary of the Palos Verdes Peninsula 

AVA in the regulatory text published at 

the end of this final rule. 

Maps 

The petitioners provided the required 

maps, and they are listed below in the 

regulatory text. You may also view the 

Palos Verdes Peninsula AVA boundary 

on the AVA Map Explorer on the TTB 

website, at https://www.ttb.gov/wine/ 

ava-map-explorer. 

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, at least 85 percent of the 

wine must be derived from grapes 

grown within the area represented by 

that name, 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 an AVA name and that 

name 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 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 

that was used as a brand name on a 

label approved before July 7, 1986. See 

27 CFR 4.39(i)(2) for details. 

With the establishment of the Palos 

Verdes Peninsula AVA, its name, ‘‘Palos 

Verdes Peninsula,’’ will be recognized 

as a name of viticultural significance 

under § 4.39(i)(3) of the TTB regulations 

(27 CFR 4.39(i)(3)). The text of the 

regulations clarifies this point. 

Consequently, wine bottlers using the 

name ‘‘Palos Verdes Peninsula’’ 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 

AVA name as an appellation of origin. 

Regulatory Flexibility Act 

TTB certifies that this regulation will 

not have a significant economic impact 

on a substantial number of small 

entities. The regulation imposes no new 

reporting, recordkeeping, or other 

administrative requirement. Any benefit 

derived from the use of an AVA 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 final 

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 final 

rule. 

List of Subjects in 27 CFR Part 9 

Wine. 

The Regulatory Amendment 

For the reasons discussed in the 

preamble, TTB amends title 27, chapter 

I, part 9, Code of Federal Regulations, 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 

§ 9.274 to read as follows: 

§ 9.274 Palos Verdes Peninsula. 

(a) Name. The name of the viticultural 

area described in this section is ‘‘Palos 

Verdes Peninsula’’. For purposes of part 

4 of this chapter, ‘‘Palos Verdes 

Peninsula’’ is a term of viticultural 

significance. 

(b) Approved maps. The three United 

States Geological Survey (USGS) 

1:24,000 scale topographic maps used to 

determine the boundary of the Palos 

Verdes Peninsula viticultural area are 

titled: 

(1) Redondo Beach, CA, 1996; 

(2) Torrance, Calif., 1964 

(photorevised 1981); and 

(3) San Pedro Calif., 1964 

(photorevised 1981). 

(c) Boundary. The Palos Verdes 

Peninsula viticultural area is located in 

the southwestern coastal region of Los 

Angeles County, and contains the cities 

of Palos Verdes Estates, Rolling Hills, 

Rolling Hills Estates, and Rancho Palos 

Verdes, California. The boundary of the 

Palos Verdes Peninsula viticultural area 

is as described below: 

(1) The beginning point is on the 

Redondo Beach map at the intersection 

of the Pacific Ocean and the Torrance 

corporate boundary at Malaga Cove, 

R14W/T4S; then 

(2) From the beginning point, proceed 

east, then generally southeast, along the 

Torrance corporate boundary, crossing 

onto the Torrance map, to the corporate 

boundary’s intersection with the Lomita 

corporate boundary, R14W/T4S; then 

(3) Proceed generally southeast along 

the Lomita corporate boundary to its 

intersection with Western Avenue, 

R14W/T4S; then 

(4) Proceed south along Western 

Avenue, crossing onto the San Pedro 

map, to the road’s intersection with the 

Los Angeles city boundary, R14W/T5S; 

then 

(5) Proceed west, then generally 

south, then southwest along the Los 

Angeles city boundary to its intersection 

with the Pacific Ocean at Palos Verdes 

Peninsula Park, R14W/T5S; then 

(6) Proceed clockwise along the 

Pacific coastline to return to the 

beginning point. 

Signed: December 1, 2020. 

Mary G. Ryan, 

Administrator. 

Approved: January 5, 2021. 

Timothy E. Skud, 

Deputy Assistant Secretary (Tax, Trade, and 

Tariff Policy). 

[FR Doc. 2021–12770 Filed 6–16–21; 8:45 am] 

BILLING CODE 4810–31–P 

DEPARTMENT OF THE TREASURY 

Alcohol and Tobacco Tax and Trade 

Bureau 

27 CFR Part 9 

[Docket No. TTB–2020–0005; T.D. TTB–168; 

Ref: Notice No. 190] 

RIN 1513–AC60 

Establishment of The Burn of 

Columbia Valley Viticultural Area 

AGENCY: Alcohol and Tobacco Tax and 

Trade Bureau, Treasury. 

ACTION: Final rule; Treasury decision. 

SUMMARY: The Alcohol and Tobacco Tax 

and Trade Bureau (TTB) establishes the 

approximately 16,870-acre ‘‘The Burn of 

Columbia Valley’’ viticultural area in 

Klickitat County, Washington. The 

newly-established The Burn of 

Columbia Valley viticultural area is 

located entirely within the existing 

Columbia Valley 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. 


lotter on DSK11XQN23PROD with RULES1