[Federal Register Volume 73, Number 156 (Tuesday, August 12, 2008)]
[Proposed Rules]
[Pages 46830-46835]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E8-18536]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 9

[Notice No. 89; Docket No. TTB-2008-0008]
RIN 1513-AB52


Proposed Establishment of the Happy Canyon of Santa Barbara 
Viticultural Area (2007R-311P)

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 proposes to 
establish the 23,941-acre ``Happy Canyon of Santa Barbara'' American 
viticultural area in Santa Barbara County, California. This 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. We 
invite comments on this proposed addition to our regulations.

DATES: We must receive written comments on or before October 14, 2008.

ADDRESSES: You may send comments on this notice to one of the following 
addresses:
    <bullet> http://www.regulations.gov (via the online comment form 
for this notice as posted within Docket No. TTB-2008-0008 at 
``Regulations.gov,'' the Federal e-rulemaking portal); or
    <bullet> Director, Regulations and Rulings Division, Alcohol and 
Tobacco Tax and Trade Bureau, P.O. Box 14412, Washington, DC 20044-
4412.
    See the Public Participation section of this notice for specific 
instructions and requirements for submitting comments, and for 
information on how to request a public hearing.
    You may view copies of this notice, selected supporting materials, 
and any comments we receive about this proposal at http://www.regulations.gov within Docket No. TTB-2008-0008. A link to that 
docket is posted on the TTB Web site at http://www.ttb.gov/wine/wine_rulemaking.shtml under Notice No. 89. You also may view copies of this 
notice, all related petitions, maps and other supporting materials, and 
any comments we receive about this proposal by appointment at the TTB 
Information Resource Center, 1310 G Street, NW., Washington, DC 20220. 
Please call 202-927-2400 to make an appointment.

FOR FURTHER INFORMATION CONTACT: N.A. Sutton, Regulations and Rulings 
Division, Alcohol and Tobacco Tax and Trade Bureau, 925 Lakeville St., 
No. 158, Petaluma, CA 94952; telephone 415-271-1254.

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 geographic 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.

[[Page 46831]]

Section 9.3(b) of the TTB regulations requires the petition to 
include--
    <bullet> Evidence that the proposed viticultural area is locally 
and/or nationally known by the name specified in the petition;
    <bullet> Historical or current evidence that supports setting the 
boundary of the proposed viticultural area as the petition specifies;
    <bullet> Evidence relating to the geographic features, such as 
climate, soils, elevation, and physical features, that distinguish the 
proposed viticultural area from surrounding areas;
    <bullet> A description of the specific boundary of the proposed 
viticultural area, based on features found on United States Geological 
Survey (USGS) maps; and
    <bullet> 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. It 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 states 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 U.S. Geological Survey 
Geographical Names Information System (GNIS) includes ten hits for 
``Happy Canyon,'' three of which are in California. The petitioner 
originally considered Happy Canyon for the name of the proposed 
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 viticultural 
area petition to ``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 the 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

[[Page 46832]]

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 grazeland, 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, and 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://www.cimis.water.ca.gov/cimis/welcome.jsp), respectively. The petitioner 
used those data in creating 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
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                                                                                                     Overall       Percent cooler or warmer than Happy
       Location relative to Happy Canyon              2004            2005            2006           average                      Canyon
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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.
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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 based on the current soil survey, 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, based on the amount of positively 
charged ions in the soils,

[[Page 46833]]

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.

                   Cation Exchange Capacity (CEC) in Soils Within and Outside of Happy Canyon
                      [meq/100g=milliequivalents of cations absorbed per 100 grams of soil]
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                                                                                                   Total CEC in
                    Location                         Magnesium        Calcium         Sodium         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...................            34.4            60.0             2.0            12.5
(1 mile southwest 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
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                                                   Number of map
           Soil symbol and soil name              units/percentage                Percentage slope
                                                   of survey area
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                Happy Canyon of Santa Barbara (East of Foothills Adjacent to Santa Agueda Creek)
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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.
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               Figueroa Area (West of Foothills and Santa Agueda Creek to Figueroa Mountain Road)
----------------------------------------------------------------------------------------------------------------
PtC--Positas fine sandy loam...................              25/17  2 to 9 percent.
ChF--Chamise shaly loam........................              22/15  15 to 45 percent.
PtD--Positas fine sandy loam...................               13/9  9 to 15 percent.
CkF--Chamise clay loam.........................               11/8  30 to 45 percent.
SnC--Santa Ynez Gravelly fine sandy loam.......               11/8  9 to 15 percent.
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[[Page 46834]]

    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.

TTB Determination

    TTB concludes that this petition to establish the 23,941-acre 
``Happy Canyon of Santa Barbara'' American viticultural area merits 
consideration and public comment as invited in this notice.

Boundary Description

    See the narrative boundary description of the petitioned-for 
viticultural area in the proposed regulatory text published at the end 
of this notice.

Maps

    The petitioner provided the required maps, and we list them 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. If we establish this proposed viticultural area, its 
name, ``Happy Canyon of Santa Barbara,'' will be recognized as a name 
of viticultural significance under 27 CFR 4.39(i)(3). The text of the 
proposed regulation clarifies this point. Consequently, 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 name as an appellation of origin.
    On the other hand, we do not believe that any single part of the 
proposed viticultural area name standing alone, such as ``Happy 
Canyon,'' would have viticultural significance if the new area is 
established. According to GNIS, the ``Happy Canyon'' refers to 10 
locations in 6 States within the United States. TTB believes that a 
determination of ``Happy Canyon'' as a term of viticultural 
significance would lead to consumer and industry confusion and should 
be avoided. Accordingly, the proposed part 9 regulatory text set forth 
in this document specifies only the full ``Happy Canyon of Santa 
Barbara'' name as a term of viticultural significance for purposes of 
part 4 of the TTB regulations.
    For a wine to be eligible to use a viticultural area name as an 
appellation of origin or a term of viticultural significance in a brand 
name, at least 85 percent of the wine must be derived from grapes grown 
within the area represented by that name or term, and the wine must 
meet the other conditions listed in 27 CFR 4.25(e)(3). If the wine is 
not eligible to use the viticultural area name as an appellation of 
origin and that name or other term of viticultural significance 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 term of viticultural 
significance 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 approval 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.

Public Participation

Comments Invited

    We invite comments from interested members of the public on whether 
we should establish the proposed viticultural area. We are also 
interested in receiving comments on the sufficiency and accuracy of the 
name, boundary, climatic, and other required information submitted in 
support of the petition. We are also particularly interested in any 
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. Please provide any available specific 
information in support of your comments.
    Because of the potential impact of the establishment of the 
proposed Happy Canyon of Santa Barbara viticultural area on wine labels 
that include the words ``Happy Canyon of Santa Barbara'' as discussed 
above under ``Impact on Current Wine Labels,'' we also are particularly 
interested in comments regarding whether there will be a conflict 
between the proposed viticulturally significant terms 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 
viticultural area will have on an existing viticultural enterprise. We 
are also interested in receiving suggestions for ways to avoid 
conflicts, for example by adopting a modified or different name for the 
viticultural area.

Submitting Comments

    You may submit comments on this notice by using one of the 
following two methods:
    <bullet> Federal e-Rulemaking Portal: You may send comments via the 
online comment form posted with this notice within Docket No. TTB-2008-
0008 on ``Regulations.gov,'' the Federal e-rulemaking portal, at http://www.regulations.gov. A direct link to that docket is available under 
Notice No. 89 on the TTB Web site at http://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 ``User Guide'' under ``How 
to Use this Site.''
    <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, P.O. Box 14412, Washington, DC 20044-4412.
    Please submit your comments by the closing date shown above in this 
notice. Your comments must reference Notice No. 89 and include your 
name and mailing address. Your comments also must be made in English, 
be legible, and be written in language acceptable for public 
disclosure. We do not acknowledge receipt of comments, and we consider 
all comments as originals.
    If you are commenting on behalf of an association, business, or 
other 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, 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.

[[Page 46835]]

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

    We will post, and you may view, copies of this notice, selected 
supporting materials, and any online or mailed comments we receive 
about this proposal within Docket No. TTB-2008-0008 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. 89. You may 
also reach the relevant docket through the Regulations.gov search page 
at http://www.regulations.gov. For instructions on how to use 
Regulations.gov, visit the site and click on ``User Guide'' under ``How 
to Use this Site.''
    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 e-mail addresses. We may omit voluminous 
attachments or material that we consider unsuitable for posting.
    You also may view copies of this notice, all related petitions, 
maps and other supporting materials, and any electronic or mailed 
comments we receive about this proposal by appointment at the TTB 
Information Resource Center, 1310 G Street, NW., Washington, DC 20220. 
You may also obtain copies at 20 cents per 8.5- x 11-inch page. Contact 
our information specialist at the above address or by telephone at 202-
927-2400 to schedule an appointment or to request copies of comments or 
other materials.

Regulatory Flexibility Act

    We certify 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

    This proposed rule is not a significant regulatory action as 
defined by Executive Order 12866. Therefore, it requires no regulatory 
assessment.

Drafting Information

    N.A. Sutton of the Regulations and Rulings Division drafted this 
notice.

List of Subjects in 27 CFR Part 9

    Wine.

Proposed Regulatory Amendment

    For the reasons discussed in the preamble, we propose to amend 
title 27, chapter 1, 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.

    2. Subpart C is amended by adding Sec.  9.------to read as follows:

Subpart C--Approved American Viticultural Areas


Sec.  9.------  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
    (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 its 
intersection with the marked 924-foot elevation point, T6N, R30W; then
    (8) Proceed north-northwest in a straight line 1.2 miles to its 
intersection with 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 its intersection 
with 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 its intersection 
with the marked 1,721-foot elevation point in section 4, T7N, R30W; 
then
    (11) Proceed north in a straight line 1.4 miles to its intersection 
with 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: June 9, 2008.
John J. Manfreda,
Administrator.
[FR Doc. E8-18536 Filed 8-11-08; 8:45 am]
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