[Federal Register Volume 87, Number 107 (Friday, June 3, 2022)]
[Rules and Regulations]
[Pages 33646-33649]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-11716]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 9

[Docket No. TTB-2021-0005; T.D. TTB-181; Ref: Notice No. 202]
RIN 1513-AC81


Establishment of the Paulsell Valley Viticultural Area

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

ACTION: Final rule; Treasury decision.

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SUMMARY: The Alcohol and Tobacco Tax and Trade Bureau (TTB) establishes 
the 34,155-acre ``Paulsell Valley'' viticultural area (AVA) in 
Stanislaus County, California. The Paulsell Valley viticultural area is 
not located within, nor does it contain, any other 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 5, 2022.

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).

[[Page 33647]]

    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, once approved, a name and a delineated boundary 
codified 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 allows any interested 
party to petition TTB to establish a grape-growing region as an AVA. 
Section 9.12 of the TTB regulations (27 CFR 9.12) prescribes standards 
for petitions to establish or modify AVAs. Petitions to establish an 
AVA must include the following:
    <bullet> Evidence that the area 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 AVA boundary;
    <bullet> 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
    <bullet> A detailed narrative description of the proposed AVA 
boundary based on USGS map markings.

Paulsell Valley AVA Petition

    TTB received a petition from Patrick Shabram, on behalf of Rock 
Ridge Ranch, proposing the establishment of the ``Paulsell Valley'' 
AVA. The proposed AVA is located in Stanislaus County, California, and 
is not within any established AVA. The proposed AVA covers 34,155 acres 
and includes 3 commercial vineyards covering a total of approximately 
826 acres. The petition notes that a fourth vineyard is planned that 
would include an additional 700 acres of vines. The petition identifies 
the distinguishing features of the proposed Paulsell Valley AVA as its 
topography, climate, and soils.
    The proposed Paulsell Valley AVA is located in a valley carved by 
Dry Creek in and around the unincorporated community of Paulsell, 
California. The topography of the proposed AVA is dominated by rolling 
hills marked by cut arroyos and interspersed with steep, isolated 
hills. This type of topography is referred to as a ``mound-intermound 
relief.'' Elevations within the proposed AVA are between 140 and 612 
feet, with most of the proposed AVA in the 180-400 foot range. 
According to the petition, the gentle slopes of the proposed AVA ensure 
good drainage for vineyards, while the isolated nature of higher mounds 
within the proposed AVA decrease shadows on the valley floor and allow 
most vineyards to receive long hours of solar radiation.
    To the north of the proposed Paulsell Valley AVA is the floodplain 
of the Stanislaus River. Along the floodplain are alluvial terraces and 
fans that differ from the mound-intermound topography of the proposed 
AVA. Elevations to the north of the proposed AVA are generally below 
300 feet. East of the proposed AVA are the Sierra Nevada Mountains, 
which can rise to several thousand feet. South of the proposed AVA is 
the Modesto Reservoir. To the southeast and southwest of the proposed 
AVA, the mound-intermound relief is present, but is less pronounced 
than in the proposed AVA because the upper depositional layers have 
weathered and eroded away. West of the proposed AVA is the San Joaquin 
Valley, whose floor has significantly flatter topography and elevations 
that are typically below 200 feet.
    The petition also describes the climate of the proposed Paulsell 
Valley AVA. From 2012 to 2017, annual growing degree day (GDD) \1\ 
accumulations within the proposed AVA ranged from 4,201 to 5,204. 
Average growing season low temperatures during the same time period 
were between 55.4 and 57.9 degrees Fahrenheit (F). Annual precipitation 
amounts during the same time period ranged from 7.6 inches to 26.4 
inches. The petition states that the temperatures within the proposed 
AVA impact the timing of bud break, grape development and sugar 
accumulations, and harvest dates. The annual precipitation amounts 
provide adequate soil moisture and reduce the need for irrigation.
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    \1\ See Albert J. Winkler, General Viticulture (Berkeley: 
University of California Press, 2nd Ed. 1974), pages 61-64. In the 
Winkler climate classification system, annual heat accumulation 
during the growing season, measured in annual GDDs, defines climatic 
regions. One GDD accumulates for each degree Fahrenheit that a day's 
mean temperature is above 50 degrees F, the minimum temperature 
required for grapevine growth.
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    West of the proposed Paulsell Valley AVA, in the San Joaquin 
Valley, GDD accumulations were lower during the 2012-2017 period and 
ranged from 3,780 to 4,308. Precipitation amounts during the same 
period were also generally lower in the San Joaquin Valley than in the 
proposed AVA, as was the average growing season low temperature. In the 
region to the southwest of the proposed AVA, GDD accumulations were 
also generally lower than within the proposed AVA, ranging from 3,949 
to 4,437. Precipitation amounts in this region were also lower than 
within the proposed AVA, ranging from 6.6 to 19.6 inches. East of the 
proposed AVA, GDD accumulations were similar to slightly lower than 
those within the proposed AVA, ranging from 4,586 to 4,711. 
Precipitation amounts were higher in the region to the east, ranging 
from 30.5 to 37.6 inches. Climate data was not available for the 
regions due north and south of the proposed AVA.
    Layers of volcanic tuff, which is rock created from the deposition 
of volcanic ash instead of from direct lava flow, form the parent 
material for the most common soil types in the proposed Paulsell Valley 
AVA. The most common soils are the Pentz series soils, which comprise 
23 percent of the soil within the proposed AVA. Soils in this series 
include Pentz cobbly loam and Pentz sandy loam. Soils from the Peters 
series account for 11 percent of the soils within the proposed AVA, 
while the Peters-Pentz complex make up a little more than 22 percent of 
the soils. The petition describes a ``complex'' as similar soil types 
mixed at such a scale

[[Page 33648]]

that they are not defined as one type or the other.
    Soils within the proposed AVA are well-drained, which helps prevent 
soil-borne pathogens that can harm vines. The petition states that the 
soils have a different mineral content and holding capacity than the 
soils of surrounding regions. Holding capacity impacts how much 
moisture from rainfall can be utilized by grape vines. The mineral 
content of a soil is often credited with creating subtle distinctions 
in the flavors of grapes.
    The petition notes that Peters and Pentz soils are found in the 
regions to the west and southeast of the proposed Paulsell Valley AVA. 
However, the petition states that sharp contrasts in soils exist to the 
north, northeast, and south of the proposed AVA. To the north of the 
proposed AVA, along the floodplain of the Stanislaus River, alluvial 
sandy soils are abundant, including soils of the Honcut, Hanford, and 
Columbia series. To the northeast of the proposed AVA, the Amador and 
Auburn soils are more common. These soils derive from tuffaceous 
sediments, similar to the Pentz and Peters soils, although the Auburn 
soil has metamorphic parent material. Other soils in the region to the 
northeast of the proposed AVA include soils derived from metamorphosed 
igneous rocks, such as the Exchequer soils, and soils derived from 
sedimentary rock, such as the Hornitos soils. South of the proposed 
AVA, Hopeton clays, Montpellier coarse sandy loam, and Whitney sandy 
loams are more common. These soils are formed from deposited sediments 
usually of granitic origin, or weakly consolidated sandstone of igneous 
material, and lack volcanic tuff material.

Notice of Proposed Rulemaking and Comments Received

    TTB published Notice No. 202 in the Federal Register on July 15, 
2021 (86 FR 37265), proposing to establish the Paulsell Valley 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 included information from the petition comparing 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. 202. In Notice No. 202, TTB 
solicited comments on the accuracy of the name, boundary, and other 
required information submitted in support of the petition. The comment 
period closed on September 13, 2021. TTB did not receive any comments 
in response to Notice No. 202.

TTB Determination

    After careful review of the petition, TTB finds that the evidence 
provided by the petitioner supports the establishment of the Paulsell 
Valley 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 the ``Paulsell Valley'' AVA in 
Stanislaus County, California, effective 30 days from the publication 
date of this document.

Boundary Description

    See the narrative description of the boundary of the Paulsell 
Valley AVA in the regulatory text published at the end of this final 
rule.

Maps

    The petitioner provided the required maps, and they are listed 
below in the regulatory text. The Paulsell Valley AVA boundary may also 
be viewed 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 Paulsell Valley AVA, its name, 
``Paulsell Valley,'' 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)). The text of the regulations clarifies this point. 
Consequently, wine bottlers using the name ``Paulsell Valley'' in a 
brand name, including a trademark, or in another label reference 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.
    The establishment of the Paulsell Valley AVA will not affect any 
existing AVA. The establishment of the Paulsell Valley AVA will allow 
vintners to use ``Paulsell Valley'' as an appellation of origin for 
wines made primarily from grapes grown within the Paulsell Valley AVA 
if the wines meet the eligibility requirements for the appellation.

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

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. Add Sec.  9.285 to subpart C to read as follows:


Sec.  9.285  Paulsell Valley AVA.

    (a) Name. The name of the viticultural area described in this 
section is ``Paulsell Valley''. For purposes of part

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4 of this chapter, ``Paulsell Valley'' is a term 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 
viticultural area are titled:
    (1) Knights Ferry, California, 2015;
    (2) Keystone, California, 2015;
    (3) Cooperstown, California, 2015; and
    (4) Paulsell, California, 2015.
    (c) Boundary. The Paulsell Valley viticultural area is located in 
Stanislaus County, California. The boundary of the Paulsell Valley 
viticultural area is as described in the following paragraphs:
    (1) The beginning point is on the Knights Ferry map at the 
intersection of Willms Road, Kennedy Road/Sonora Road, and State 
Highway 108/State Highway 120. From the beginning point, proceed 
southeasterly along Willms Road for 7.2 miles, crossing over the 
Keystone map and onto the Cooperstown map, to the intersection of 
Willms Road and Warnerville Road at the Warnerville Cemetery; then
    (2) Proceed west, then south along Warnerville Road for a total of 
0.5 mile to its intersection with Crabtree Road at the railroad tracks 
west of the town of Warnerville; then
    (3) Proceed in a southerly direction along Crabtree Road for 6.7 
miles to its intersection with the canal known locally as the Modesto 
Main Canal; then
    (4) Proceed westerly along the canal, crossing onto the Paulsell 
map, and continuing along the canal for a total of 1.6 miles to the 
Modesto Reservoir; then
    (5) Proceed along the eastern shore, then northern shore, of the 
Modesto Reservoir for 12.9 miles to the fifth intersection of the shore 
with an unnamed, intermittent creek at the northernmost point of the 
reservoir; then
    (6) Proceed southwesterly in a straight line to the northern 
terminus of Reservoir Road; then
    (7) Proceed south-southwest along Reservoir Road for 2.2 miles to 
its intersection with the 200-foot elevation contour; then
    (8) Proceed northwest in a straight line for 1.2 miles to the 
intersection of Hazeldean Road and Tim Bell Road; then
    (9) Proceed north along Tim Bell Road for 3.1 miles to its 
intersection with Claribel Road south of the town of Paulsell; then
    (10) Proceed west along Claribel Road for 2.4 miles, crossing 
Cashman Creek, to the intersection of the road with the 260-foot 
elevation contour; then
    (11) Proceed north in a straight line for 2 miles to the 
intersection of Warnerville Road and the 300-foot elevation contour 
east of Cashman Creek; then
    (12) Proceed northeast in a straight line, crossing onto the 
Knights Ferry map and continuing for a total of 1.1 miles to the 
intersection of Fogarty Road and a railroad track; then
    (13) Proceed east in a straight line for 0.9 mile to Paulsell 
Lateral; then
    (14) Proceed northerly along Paulsell Lateral for 2.4 miles to its 
intersection with Cashman Creek; then
    (15) Proceed northwest in a straight line for 1.3 miles to State 
Highway 108/State Highway 120; then
    (16) Proceed northeast in a straight line for 2.4 miles to the 
third intersection of State Highway 108/State Highway 120 with the 300-
foot elevation contour; then
    (17) Proceed southeast along State Highway 108/State Highway 120 
for 1 mile to its intersection with the 260-foot elevation contour; 
then
    (18) Proceed northeasterly along the 260-elevation contour for 1.4 
miles to its intersection with Sonora Road southeast of Knights Ferry; 
then
    (19) Proceed southeast along Sonora Road for 0.1 mile to its 
intersection with Kennedy Road; then
    (20) Proceed northeast, then east, then south along Kennedy Road/
Sonora Road for 0.4 mile, returning to the beginning point.

    Signed: May 25, 2022.
Mary G. Ryan,
Administrator.

    Approved: May 26, 2022.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and Tariff Policy).
[FR Doc. 2022-11716 Filed 6-2-22; 8:45 am]
BILLING CODE 4810-31-P