[Federal Register Volume 75, Number 212 (Wednesday, November 3, 2010)]
[Rules and Regulations]
[Pages 67616-67618]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-27739]
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DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade Bureau
27 CFR Part 9
[Docket No. TTB-2010-0002; T.D. TTB-87; Re: Notice No. 104]
RIN 1513-AB65
Yamhill-Carlton Viticultural Area (2008R-305P)
AGENCY: Alcohol and Tobacco Tax and Trade Bureau, Treasury.
ACTION: Final rule; Treasury decision.
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SUMMARY: This Treasury decision renames the ``Yamhill-Carlton
District'' viticultural area, located in Yamhill and Washington
Counties, Oregon, as the ``Yamhill-Carlton'' viticultural area. We
designate viticultural areas to allow vintners to better describe the
origin of their wines and to allow consumers to better identify wines
they may purchase.
DATES: Effective Date: December 3, 2010.
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 geographical origin. The establishment of
viticultural areas allows vintners to describe more accurately the
origin of their wines to consumers and helps consumers to identify
wines they may purchase. Establishment of a viticultural area is
neither an approval nor an endorsement by TTB of the wine produced in
that area.
Requirements
Section 4.25(e)(2) of the TTB regulations outlines the procedure
for proposing an American viticultural area and provides that any
interested party may petition TTB to establish a grape-growing region
as a viticultural area. Section 9.3(b) of the TTB regulations requires
the petition to include--
Evidence that the proposed viticultural area is locally
and/or nationally known by the name specified in the petition;
Historical or current evidence that supports setting the
boundary of the proposed viticultural area as the petition specifies;
Evidence relating to the geographical features, such as
climate, soils, elevation, and physical features that distinguish the
proposed viticultural area from surrounding areas;
A description of the specific boundary of the proposed
viticultural area, based on features found on United States Geological
Survey (USGS) maps; and
A copy of the appropriate USGS map(s) with the proposed
viticultural area's boundary prominently marked.
Yamhill-Carlton District Viticultural Area Background
In 2002, TTB's predecessor Agency, the Bureau of Alcohol, Tobacco
and Firearms, received a petition from Mr. Alex Sokol-Blosser,
Secretary of the North Willamette Valley [American Viticultural Area]
Group, and Mr. Ken Wright, on behalf of certain grape growers, to
establish a new viticultural area called the ``Yamhill-Carlton
District.'' Located in northwestern Oregon, the Yamhill-Carlton
District is about 35 miles southwest of Portland, Oregon, and 25 miles
from the Pacific Ocean, in Yamhill and Washington Counties, Oregon, and
entirely within the larger Willamette Valley viticultural area (27 CFR
9.90).
On October 7, 2003, TTB published in the Federal Register (68 FR
57845) Notice No. 19, proposing the establishment of the Yamhill-
Carlton District viticultural area. In response to that notice, the
only comment TTB received was in support of the proposed establishment.
On December 9, 2004, TTB published in the Federal Register (69 FR
71372) Treasury Decision (T.D.) TTB-20, establishing the Yamhill-
Carlton District viticultural area (27 CFR 9.183) as proposed.
T.D. TTB-20 states that the Yamhill-Carlton District viticultural
area boundary line surrounds the towns of Yamhill and Carlton, which
lie 3 miles apart, along Route 47, in Yamhill County. The ``Name
Evidence'' section states that the first time the two names were used
together was in the 1853 establishment of the Yamhill-Carlton Pioneer
Cemetery. The cemetery is identified on the USGS Carlton Quadrangle map
(published in 1957; revised in 1992). The name was used again in 1955,
when the Yamhill-Carlton Union High School was established in the
Yamhill-Carlton School District. Residents still use the ``Yamhill-
Carlton'' name today.
Petition To Change to the Yamhill-Carlton District Viticultural Area
Name
In 2008, Mr. Ken Wright, of Ken Wright Cellars, submitted a
petition to TTB to change the name of the viticultural area from
``Yamhill-Carlton District'' to ``Yamhill-Carlton.'' In this petition,
Mr. Wright asserts that when the viticultural area was originally
proposed ``[t]he inclusion of the word `District' was completely
discretionary and added only to enforce the idea of the AVA [American
viticultural area] being a regionalized area.'' Further, he states that
``[h]istorically, the area has always been referred to as simply
`Yamhill-Carlton.' Additionally, the length of the current name is very
difficult to fit on a [wine] label. Many wineries have found it
impossible, given their current label graphics, to utilize the name.''
Many others joined Mr. Wright, writing letters included with the
petition, in support of renaming the Yamhill-Carlton District
viticultural area as the Yamhill-Carlton viticultural area. Kathie
Oriet, Mayor of the city of Carlton, Oregon, wrote: ``As Mayor of the
small city of Carlton, I feel the
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viticultural area designation should represent the more commonly known
name of Yamhill-Carlton. Many area joint ventures are known as Yamhill-
Carlton in both Yamhill and Carlton, including the local school
district, local sports groups and even the community luncheon group.''
Laurent Montalieu, winemaker at Solena Cellars, stated:
``Historically, the area has been more commonly referred to [as]
Yamhill-Carlton rather than the Yamhill-Carlton District, as well as
the wines.'' Mr. Mantalieu also noted that a change to the shorter
``Yamhill-Carlton'' would be helpful in printing [wine] labels.
David Grooters, owner of Carlton Cellars, explained: ``The area is
always referred to as Yamhill-Carlton. As in: `I went to Yamhill-
Carlton High School,' or `I grew up in Yamhill-Carlton.' The simpler
Yamhill-Carlton AVA [name] would be much preferable for use in our
labeling and marketing materials.''
Brian O'Donnell of Belle Pente Vineyard and Winery stated that the
region is more generally known as ``Yamhill-Carlton,'' not ``Yamhill-
Carlton District.'' Mr. O'Donnell added: ``I believe that there is a
broad consensus with the Yamhill-Carlton winegrower community that
making this change is the right thing to do, and I hope that the TTB
will be able to take action.''
Jacki Bessler of Barbara Thomas Wines stated that shortening the
name ``will greatly impact our ability to attractively place the AVA
designation on our label. Perhaps more important, however, is that by
adding the word `District' to Yamhill-Carlton, we have actually moved
away [from] historical and geographic accuracy. I personally know of no
other geographic, public, historic, or other Yamhill-Carlton name that
has the term `district' attached. We are known, simply, by Yamhill-
Carlton.''
Name Evidence
TTB notes that the 2002 petition to establish the Yamhill-Carlton
District viticultural area included entries in the local telephone book
for the Yamhill-Carlton School District and the Yamhill-Carlton High
School.
The current petition provides several recent examples of usage of
the Yamhill-Carlton name without the word ``District.'' On March 17,
2007, the Community Press newspaper ran an advertisement for a dance
sponsored by the Yamhill-Carlton Booster Club at the Yamhill-Carlton
High School cafeteria. The Lincoln County School District Boys
Basketball online schedule (accessed February 11, 2008) showed that the
Yamhill-Carlton Tournament had been scheduled for November 30 and
December 1, 2007. The Oregonian, a newspaper published in Portland,
reported ``Yamhill-Carlton 6, Seaside 5'' in prep baseball (date
unknown). A flyer, distributed by the Yamhill-Carlton Anti-Drug
Coalition to announce it would meet on January 25, [2008] at 7 p.m.,
was addressed to ``Dear Yamhill-Carlton Community Partner.'' On
February 11, 2008, ``The Statesman Journal'' reported biographical
information online about Ed Glad, candidate for State Representative
and formerly a member of the Yamhill-Carlton High School Site Counsel,
according to the petition.
Additional examples of the use of the Yamhill-Carlton name provided
with the petition include: (1) An e-mail announcing the Yamhill-Carlton
Community Luncheon; (2) a brown bag lunch event with the police chiefs
of Yamhill and Carlton as the guest speakers at Yamhill City Hall, on
February 12, 2008; (3) a June 1, 2008, photograph showing the sign for
the ``Historic Yamhill-Carlton Pioneer Memorial Cemetery, Established
1853''; and (4) a listing for the ``Yamhill-Carlton FFA Alumni'' with
the Oregon Future Farmers of America Association.
Search for the Term ``Yamhill-Carlton''
A TTB query of the ``Yamhill-Carlton'' name on the USGS Geographic
Names Information System database yielded no hits for the exact
``Yamhill-Carlton'' name usage. However, our query of the ``Yamhill-
Carlton'' name using an Internet search engine yielded 44,000 results,
some of which reference the existing Yamhill-Carlton District
viticultural area within the general area of the Yamhill-Carlton region
in northwest Oregon.
Notice of Proposed Rulemaking and Comments Received
On March 4, 2010, TTB published in the Federal Register (75 FR
9831) Notice No.104 setting forth a proposal to change the Yamhill-
Carlton District viticultural area name to Yamhill-Carlton. We received
no comments in response to that notice; we had received five letters of
comment, all in support of the name change, with Mr. Wright's 2008
petition.
TTB Finding
After careful review of the petition, TTB finds that the evidence
submitted supports changing the name of the ``Yamhill-Carlton
District'' viticultural area to ``Yamhill-Carlton.'' Therefore, under
the authority of the Federal Alcohol Administration Act and part 4 of
our regulations, we amend Sec. 9.183 of the TTB regulations to re-name
the Yamhill-Carlton District viticultural area as the Yamhill-Carlton
viticultural area, effective 30 days from the publication date of this
document.
Impact on Current Wine Labels
Part 4 of the TTB regulations prohibits any label reference on a
wine that indicates or implies an origin other than the wine's true
place of origin. With approval of this viticultural area name change,
the new name, ``Yamhill-Carlton,'' will be recognized under 27 CFR
4.39(i)(3) as a term of viticultural significance. The text of the
amended regulation clarifies this point. This name change will affect
vintners who currently and properly use the ``Yamhill-Carlton
District'' viticultural area name as explained in the Transition Period
for ``Yamhill-Carlton District'' Labels discussion below. ``Yamhill-
Carlton'' has been recognized as a term of viticultural significance by
TTB since the establishment of the Yamhill-Carlton District
viticultural area. Therefore, dropping ``District'' from the
viticultural area name will not change the viticultural significance of
the term ``Yamhill-Carlton.''
For a wine to be labeled with a viticultural area name or with a
brand name that includes a viticultural area name or other term
identified as being viticulturally significant in part 9 of the TTB
regulations, at least 85 percent of the wine must be derived from
grapes grown within the area represented by that name or other term,
and the wine must meet the other conditions listed in 27 CFR
4.25(e)(3). If the wine is not eligible for labeling with the
viticultural area name or other viticulturally significant term and
that name or term appears in the brand name, then the label is not in
compliance and the bottler must change the brand name and obtain
approval of a new label. Similarly, if the viticultural area name or
other 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.
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.
Transition Period for ``Yamhill-Carlton District'' Labels
With adoption of the final rule renaming this viticultural area,
under the new regulatory text, current holders of labels that were
approved before the effective date of the final rule that use the
``Yamhill-Carlton District'' name to
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designate a viticultural area will be permitted to use those approved
labels during a 2-year transition period. At the end of the 2-year
period, holders of approved ``Yamhill-Carlton District'' wine labels
must discontinue their use as their certificates of label approval will
be revoked by operation of the final rule. (See 27 CFR 13.51 and
13.72(a)(2).) The new regulatory text includes a statement to this
effect as a new paragraph (d) in Sec. 9.183. We believe the 2-year
period will provide such label holders with adequate time to use up
their supply of previously approved ``Yamhill-Carlton District''
labels.
TTB notes that label holders who continue to use labels showing the
``Yamhill-Carlton District'' name during the transition period also may
apply for certificates of label approval with the Yamhill-Carlton name,
and use such labels, if approved.
Regulatory Flexibility Act
We certify that this regulation will not have a significant
economic impact on a substantial number of small entities. This
regulation imposes no new reporting, recordkeeping, or other
administrative requirement. Any benefit derived from the use of a
viticultural area name is the result of a proprietor's efforts and
consumer acceptance of wines from that area. Therefore, no regulatory
flexibility analysis is required.
Executive Order 12866
This rule is not a significant regulatory action as defined by
Executive Order 12866. Therefore, it requires no regulatory assessment.
Drafting Information
N.A. Sutton of the Regulations and Rulings Division drafted this
notice.
List of Subjects in 27 CFR Part 9
Wine.
The Regulatory Amendment
0
For the reasons discussed in the preamble, we amend title 27 CFR,
chapter 1, part 9, as follows:
PART 9--AMERICAN VITICULTURAL AREAS
0
1. The authority citation for part 9 continues to read as follows:
Authority: 27 U.S.C. 205.
Subpart C--Approved American Viticultural Areas
0
2. Section 9.183 is amended by revising the section heading, paragraph
(a), and the introductory text of paragraphs (b) and (c), and by adding
paragraph (d) to read as follows:
Sec. 9.183 Yamhill-Carlton.
(a) Name. The name of the viticultural area described in this
section is ``Yamhill-Carlton''. For purposes of part 4 of this chapter,
``Yamhill-Carlton'' is a term of viticultural significance.
(b) Approved maps. The appropriate maps for determining the
boundary of the Yamhill-Carlton viticultural area are eight 1:24,000
scale United States Geological Survey topography maps. They are titled:
* * * * *
(c) Boundary. The Yamhill-Carlton viticultural area is located in
Yamhill and Washington Counties, Oregon, and is entirely within the
Willamette Valley viticultural area. The Yamhill-Carlton viticultural
area is limited to lands at or above 200 feet in elevation and at or
below 1,000 feet in elevation within its boundary, which is described
as follows--
* * * * *
(d) From February 7, 2005, until December 2, 2010, the name of this
viticultural area was ``Yamhill-Carlton District''. Effective December
3, 2010, this viticulture area is named ``Yamhill-Carlton''. Existing
certificates of label approval showing ``Yamhill-Carlton District'' as
an appellation of origin are revoked by operation of this regulation on
December 3, 2012.
Signed: July 20, 2010.
John J. Manfreda,
Administrator.
Approved: September 2, 2010.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and Tariff Policy).
[FR Doc. 2010-27739 Filed 11-2-10; 8:45 am]
BILLING CODE 4810-31-P