[Federal Register Volume 75, Number 42 (Thursday, March 4, 2010)]
[Proposed Rules]
[Pages 9831-9834]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-4570]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 9

[Docket No. TTB-2010-0002; Notice No. 104]
RIN 1513-AB65


Proposed Renaming of the Yamhill-Carlton District Viticultural 
Area (2008R-305P)

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 
rename the established Yamhill-Carlton District viticultural area 
located in Yamhill and Washington Counties, Oregon, as the ``Yamhill-
Carlton'' viticultural area. The size and boundary description of the 
renamed viticultural area would remain the same. 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 May 3, 2010.

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-2010-0002 at 
``Regulations.gov,'' the Federal e-rulemaking portal);
    <bullet> Director, Regulations and Rulings Division, Alcohol and 
Tobacco Tax and Trade Bureau, P.O. Box 14412, Washington, DC 20044-
4412; or
    <bullet> Hand delivery/courier in lieu of mail: Alcohol and Tobacco 
Tax and Trade Bureau, 1310 G Street, NW., Suite 200-E, Washington, DC 
20005.
    See the Public Participation section of this 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-2010-0002. A link to that 
docket is posted on the TTB Web site at http://www.ttb.gov/wine/wine_rulemaking.shtml under Notice No. 104. You also may view copies of this 
notice, all related petitions, maps, or 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 202-453-2270 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; phone 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

[[Page 9832]]

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 geographic 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. 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.

Establishment of the Yamhill-Carlton District Viticultural Area

    In 2002, TTB's predecessor Agency, the Bureau of Alcohol, Tobacco 
and Firearms, received petitions from Mr. Alex Sokol-Blosser, Secretary 
of the North Willamette Valley [American Viticultural Area] Group, and 
from Mr. Ken Wright, on behalf of certain grape growers, to establish a 
new viticultural area to be called the ``Yamhill-Carlton District.'' 
Located in northwestern Oregon, the proposed Yamhill-Carlton District 
was approximately 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 originally 
proposed.
    The T.D. 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. In the ``Name Evidence'' 
section, it 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). Local usage of the ``Yamhill-
Carlton'' name has continued into the modern era. For example, in 1955, 
the Yamhill-Carlton Union High School was established in the Yamhill-
Carlton School District.

Petition To Change 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 the current 
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 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 * * *. 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.'' Finally, 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 original 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 local 
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

[[Page 9833]]

(accessed February 11, 2008) showed that the Yamhill-Carlton Tournament 
had been scheduled for November 30 and December 1, 2007. According to 
the petition, The Oregonian, a newspaper published in Portland, 
reported ``Yamhill-Carlton 6, Seaside 5'' in prep baseball (date 
unknown). A printed flyer, distributed by the Yamhill-Carlton Anti-Drug 
Coalition to announce it was to meet on January 25th [2008] at 7:00 
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 Council.
    Additional examples of the use of the Yamhill-Carlton name provided 
with the petition include the following: (1) An e-mail announcing the 
Yamhill-Carlton Community Luncheon; (2) a brown bag lunch event with 
the guest speakers being the police chiefs of Yamhill and Carlton, 
February 12, 2008, at the Yamhill City Hall; (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 (GNIS) 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, 
a sampling of which reference the existing Yamhill-Carlton District 
viticultural area within the general area of the Yamhill-Carlton region 
in northwest Oregon.

TTB Determination

    TTB concludes that this petition to rename the Yamhill-Carlton 
District viticultural area as the Yamhill-Carlton viticultural area 
merits consideration and public comment as invited in this notice.

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 approve this proposed viticultural area name 
change, the new name, ``Yamhill-Carlton,'' will be recognized as the 
name of the viticultural area. This name change will affect vintners 
who currently use the ``Yamhill-Carlton District'' name as an 
appellation of origin because only the approved viticultural name may 
be so used. Under 27 CFR 4.39(i)(3), ``Yamhill-Carlton'' has been 
recognized as a term of viticultural significance by TTB since the 
establishment of the Yamhill-Carlton District AVA. Accordingly, 
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

    If we adopt a final rule renaming this viticultural area, under the 
proposed 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 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 would be revoked by operation of the 
final rule. (See 27 CFR 13.51 and 13.72(a)(2).) The proposed 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 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.

Public Participation

Comments Invited

    We invite comments from interested members of the public on the 
appropriateness of changing the name of the existing ``Yamhill-Carlton 
District'' viticultural area to ``Yamhill-Carlton,'' and the 2-year 
transition period. We are particularly interested in comments on any 
possible effects that this name change would have on label holders 
using the Yamhill-Carlton District appellation of origin. We are also 
interested in comments regarding any negative economic impact which 
might result from the proposed change in the name of the viticultural 
area, including whether a transition period is necessary to alleviate 
the economic impact, whether 2 years constitute the appropriate length 
of time for a transition period in order to alleviate the economic 
impact, or whether a transition period may not be effective in 
alleviating such impact. If a transition period would not be effective 
or if there are other valid reasons that are relevant to this 
rulemaking, we are interested in comments as to whether both ``Yamhill-
Carlton District'' and ``Yamhill-Carlton'' should be the names of the 
viticultural area.

Submitting Comments

    You may submit comments on this notice by using one of the 
following three methods:
    <bullet> Federal e-Rulemaking Portal: You may send comments via the 
online comment form posted with this notice in Docket No. TTB-2010-0002 
on ``Regulations.gov,'' the Federal e-rulemaking portal, at http://www.regulations.gov. A direct link to that docket is available under 
Notice No. 104 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.
    <bullet> Hand Delivery/Courier: You may hand-carry your comments or 
have them hand-carried to the Alcohol and

[[Page 9834]]

Tobacco Tax and Trade Bureau, 1310 G Street, NW., Suite 200-E, 
Washington, DC 20005.
    Please submit your comments by the closing date shown above in this 
notice. Your comments must reference Notice No. 104 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 http://www.regulations.gov, please enter the entity's name in the 
``Organization'' blank of the comment form. If you comment via 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.

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

    On the Federal e-rulemaking portal, Regulations.gov, we will post, 
and you may view, copies of this notice, selected supporting materials, 
and any electronic or mailed comments we receive about this proposal. A 
direct link to the Regulations.gov docket containing this notice and 
the posted comments received on it is available on the TTB Web site at 
http://www.ttb.gov/wine/wine_rulemaking.shtml under Notice No. 104. 
You may also reach the docket containing this notice and the posted 
comments received on it through the Regulations.gov search page at 
http://www.regulations.gov.
    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 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 202-453-
2270 to schedule an appointment or to request copies of comments or 
other materials.

Regulatory Flexibility Act

    We certify that this proposed regulatory amendment, 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 27 
CFR, chapter I, part 9, 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. Section 9.183 is amended by revising the section heading, 
paragraph (a) and the introductory text of paragraphs (b) and (c), and 
by adding a new 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 [INSERT DATE ONE DAY BEFORE 
EFFECTIVE DATE OF THE FINAL RULE], the name of this viticultural area 
was ``Yamhill-Carlton District''. Effective [INSERT EFFECTIVE DATE OF 
THE FINAL RULE], 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 [INSERT DATE 2 YEARS AFTER EFFECTIVE DATE OF THE FINAL 
RULE].

    Signed: January 29, 2010.
John J. Manfreda,
Administrator.
[FR Doc. 2010-4570 Filed 3-3-10; 8:45 am]
BILLING CODE 4810-31-P