[Federal Register Volume 80, Number 32 (Wednesday, February 18, 2015)]
[Rules and Regulations]
[Pages 8529-8531]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-03371]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 9

[Docket No. TTB-2014-0006; T.D. TTB-128; Ref: Notice No. 144]
RIN 1513-AC09


Establishment of the Fountaingrove District 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 approximately 38,000-acre ``Fountaingrove District'' viticultural 
area in Sonoma County, California. The viticultural area lies entirely 
within the larger, multicounty North Coast 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 March 20, 2015.

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 various 
authorities through Treasury Department Order 120-01 (Revised), dated 
December 10, 2013, to the TTB Administrator to perform the functions 
and duties in the administration and enforcement of this law.
    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 of petitions for the 
establishment or modification of American viticultural areas (AVAs) and 
lists the approved AVAs.

Definition

    Section 4.25(e)(1)(i) of the TTB regulations (27 CFR 4.25(e)(1)(i)) 
defines a viticultural area for American wine as a delimited grape-
growing region having distinguishing features, as described in part 9 
of the regulations, and a name and a delineated boundary, as 
established in part 9 of the regulations. These designations allow 
vintners and consumers to attribute a given quality, reputation, or 
other characteristic of a wine made from grapes grown in an area to the 
wine's geographic origin. The establishment of AVAs allows vintners to 
describe more accurately the origin of their wines to consumers and 
helps consumers to identify wines they may purchase. Establishment of 
an AVA is neither an approval nor an endorsement by TTB of the wine 
produced in that area.

Requirements

    Section 4.25(e)(2) of the TTB regulations (27 CFR 4.25(e)(2)) 
outlines the procedure for proposing an AVA and provides that any 
interested party may petition TTB to establish a grape-growing region 
as an AVA. Section 9.12 of the TTB regulations (27 CFR 9.12) prescribes 
standards for petitions for the establishment or modification of AVAs. 
Petitions to establish an AVA must include the following:
    <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.

Fountaingrove District Petition

    TTB received a petition from Douglas Grigg of Walnut Hill 
Vineyards, LLC, on behalf of the Fountaingrove Appellation Committee, 
proposing the establishment of the ``Fountaingrove District'' AVA in 
Sonoma County, California, northeast of the city of Santa Rosa. The 
committee originally proposed the name ``Fountaingrove,'' after the 
19th Century utopian community of Fountaingrove that once existed 
within the region of the proposed AVA. Before the publication of the 
proposed rule, the committee submitted to TTB a request to change the 
name to ``Fountaingrove District'' in order to avoid affecting current 
use of the word ``Fountaingrove,'' standing alone, in brand names on 
wine labels. The proposed AVA covers approximately 38,000 acres and has 
approximately 35 commercially-producing vineyards covering a total of 
500 acres.
    The proposed Fountaingrove District AVA is located entirely within 
the larger, multicounty North Coast AVA (27 CFR 9.30). The proposed AVA 
shares its boundaries with the established Russian River Valley (27 CFR 
9.66), Chalk Hill (27 CFR 9.52), Knights Valley (27 CFR 9.76), 
Calistoga (27 CFR 9.209), Diamond Mountain District (27 CFR 9.166), 
Spring Mountain District (27 CFR 9.143), and Sonoma Valley (27 CFR 
9.29) AVAs but does not overlap any of these AVAs.
    According to the petition, the distinguishing features of the 
proposed Fountaingrove District AVA are its topography, climate, and 
soils. The proposed AVA is located on the western slopes of the 
Mayacmas Mountains and features low, rolling hills as well as higher, 
steeper mountains with southwest-facing slopes. The Sonoma Mountains, 
along the southwestern boundary of the proposed AVA, shelter the 
proposed AVA from the strongest marine breezes and heaviest fog, but an 
air gap in the mountains does allow some cooling air and fog into the 
proposed AVA. The moderate temperatures within the proposed 
Fountaingrove District AVA are suitable for growing cabernet sauvignon, 
chardonnay, sauvignon blanc, merlot, cabernet franc, zinfandel, syrah, 
and voignier grape varieties. The proposed

[[Page 8530]]

AVA contains a variety of different soils, but most of the soils are 
derived from Sonoma Volcanic and Franciscan Formation bedrock and 
consist of volcanic materials, such as pumiceous ashflow tuff and 
basalt lava. The soils contain high levels of iron, which is essential 
for healthy vine growth, but also contain high levels of nickel, which 
can be toxic to grapevines unless the soil is ameliorated to reduce the 
level.
    To the west of the proposed Fountaingrove District AVA, the 
established Russian River Valley AVA is a low, broad valley with cooler 
temperatures and soil derived from river deposits. To the north, the 
Knights Valley AVA is warmer than the proposed AVA and contains broad 
stream valleys with soils derived from river deposits. Also to the 
north of the proposed AVA is the Chalk Hill AVA, which has temperatures 
and topography similar to the proposed AVA, but has soils that are 
derived primarily from river deposits. To the east, the Calistoga, 
Diamond Mountain District, and Spring Mountain District AVAs have 
northeast-facing slopes, warmer temperatures, and less soil diversity. 
To the south, the Sonoma Valley AVA is a large, broad valley with soils 
derived from river deposits and temperatures that are warmer than those 
of the proposed AVA.

Notice of Proposed Rulemaking and Comments Received

    TTB published Notice No. 144 in the Federal Register on June 30, 
2014 (79 FR 36683), proposing to establish the Fountaingrove District 
AVA. In the notice, TTB summarized the evidence from the petition 
regarding the name, boundary, and distinguishing features for the 
proposed AVA. The notice also compared the distinguishing features of 
the proposed AVA to the surrounding areas. For a detailed description 
of the evidence relating to the name, boundary, and distinguishing 
features of the proposed AVA, and for a detailed comparison of the 
distinguishing features of the proposed AVA to the surrounding areas, 
see Notice No. 144.
    In Notice No. 144, TTB solicited comments on the accuracy of the 
name, boundary, and other required information submitted in support of 
the petition. In addition, TTB solicited comments on whether the 
geographic features of the proposed Fountaingrove District are so 
distinguishable from the established North Coast AVA that the proposed 
AVA should not be part of the established AVA. The comment period 
closed on August 29, 2014.

Comments Received

    In response to Notice No. 144, TTB received a total of four 
comments, all of which supported the establishment of the Fountaingrove 
District AVA. Commenters included three local vineyard and winery 
owners and one person who listed no affiliation. All of the comments 
generally supported the establishment of the proposed AVA due to its 
distinctive climate and soils and its long history as a wine region. 
One comment (comment 4) also supported the establishment of the 
proposed AVA as a way to honor the accomplishments of Kanaye Nagasawa, 
a Japanese citizen who managed the vineyards and winery of the 
Fountaingrove community and became one of the most prominent wine 
makers in California during the early 1900s.
    The comments did not raise any new issues concerning the proposed 
AVA. TTB received no comments opposing the establishment of the 
Fountaingrove District AVA. TTB also did not receive any comments in 
response to its question of whether the proposed Fountaingrove District 
AVA is so distinguishable from the established North Coast AVA that the 
proposed AVA should not be part of the established AVA.

TTB Determination

    After careful review of the petition and the comments received in 
response to Notice No. 144, TTB finds that the evidence provided by the 
petitioner supports the establishment of the Fountaingrove District 
AVA. Accordingly, under the authority of the FAA Act, section 1111(d) 
of the Homeland Security Act of 2002, and part 4 of the TTB 
regulations, TTB establishes the ``Fountaingrove District'' AVA in 
Sonoma County, California, effective 30 days from the publication date 
of this document.
    TTB has also determined that the Fountaingrove District AVA will 
remain part of the established North Coast AVA. As discussed in Notice 
No. 144, the Fountaingrove District AVA receives some of the marine 
breezes and fog that are the primary characteristics of the North Coast 
AVA. However, the Fountaingrove District AVA is also a unique 
microclimate within the larger AVA because the Mayacmas Mountains 
shelter the Fountaingrove District AVA from the strongest breezes and 
heaviest fog. Additionally, due to its smaller size, the Fountaingrove 
District AVA is more uniform in its geographical and climatic 
characteristics than the much larger, multicounty North Coast AVA.

Boundary Description

    See the narrative description of the boundary of the 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.

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 this AVA, its name, ``Fountaingrove 
District,'' 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 regulation clarifies this point. Consequently, wine 
bottlers using the name ``Fountaingrove District'' in a brand name, 
including a trademark, or in another label reference as to the origin 
of the wine, will have to ensure that the product is eligible to use 
the AVA name as an appellation of origin. TTB is not designating 
``Fountaingrove,'' standing alone, as a term of viticultural 
significance due to the current use of ``Fountaingrove,'' standing 
alone, as a brand name on wine labels.
    The establishment of the Fountaingrove District AVA will not affect 
any existing AVA, and any bottlers using ``North Coast'' as an 
appellation of origin or in a brand name for wines made from grapes 
grown within the North Coast AVA will not be affected by the 
establishment of this new AVA. The establishment of the Fountaingrove 
District AVA will allow vintners to use ``Fountaingrove District''

[[Page 8531]]

and ``North Coast'' as appellations of origin for wines made primarily 
from grapes grown within the Fountaingrove District 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. Subpart C is amended by adding Sec.  9.250 to read as follows:


Sec.  9.250  Fountaingrove District.

    (a) Name. The name of the viticultural area described in this 
section is ``Fountaingrove District.'' For purposes of part 4 of this 
chapter, ``Fountaingrove District'' 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 
Fountaingrove District viticultural area are titled:
    (1) Mark West Springs, CA; 1993;
    (2) Calistoga, CA; 1997;
    (3) Kenwood, CA; 1954; photorevised 1980; and
    (4) Santa Rosa, CA; 1994.
    (c) Boundary. The Fountaingrove District viticultural area is 
located in Sonoma County, California. The boundary of the Fountaingrove 
District viticultural area is as described below:
    (1) The beginning point is on the Mark West Springs map at the 
intersection of the shared Sonoma-Napa County line with Petrified 
Forest Road, section 3, T8N/R7W.
    (2) From the beginning point, proceed southeasterly along the 
Sonoma-Napa County line, crossing onto the Calistoga map and then the 
Kenwood map, to the marked 2,530-peak of an unnamed mountain, section 
9, T7N/R6W; then
    (3) Proceed west-southwest in a straight line to the marked 2,730-
foot summit of Mt. Hood, section 8, T7N/R6W; then
    (4) Proceed west-northwest in a straight line to the marked 1,542-
foot summit of Buzzard Peak, section 11, T7N/R7W; then
    (5) Proceed west-southwest in a straight line, crossing onto the 
Santa Rosa map, to the intersection of State Highway 12 and Los Alamos 
Road; then
    (6) Proceed due north in a straight line to the southern boundary 
of section 9, T7N/R7W; then
    (7) Proceed west-northwest along the southern boundaries of 
sections 9, 4, and 5, T7N/R7W, to the western boundary of the Los 
Guilicos Land Grant; then
    (8) Proceed west-southwest along the southern boundaries of 
sections 5, 6, and 7, T7N/R7W; then continue west-southwest along the 
southern boundaries of sections 12 and 11, T7N/R8W, to the point where 
the section 11 boundary becomes concurrent with an unnamed light-duty 
road known locally as Lewis Road; and then continue west-southwest 
along Lewis Road to the road's intersection with Mendocino Avenue in 
Santa Rosa; then
    (9) Proceed north-northwesterly along Mendocino Avenue to the 
road's intersection with an unnamed road known locally as Bicentennial 
Way; then
    (10) Proceed north in a straight line, crossing through the marked 
906-foot elevation peak in section 35, T8N/R8W, and, crossing on to the 
Mark West Springs map, continue to the line's intersection with Mark 
West Springs Road, section 26, T8N/R8W; then
    (11) Proceed northerly along Mark West Springs Road, which turns 
easterly and becomes Porter Creek Road, to the road's intersection with 
Franz Valley Road, section 12, T8N/R8W; then
    (12) Proceed northeasterly along Franz Valley Road to the western 
boundary of section 6, T8N/R7W; then
    (13) Proceed south along the western boundary of section 6, T8N/
R7W, to the southwest corner of section 6; then
    (14) Proceed east, then east-northeast along the southern 
boundaries of sections 6, 5, and 4, T8N/R7W, to the southeast corner of 
section 4; then
    (15) Proceed north along the eastern boundary of section 4, T8N/
R7W, to the Sonoma-Napa County line; then
    (16) Proceed easterly along the Sonoma-Napa County line to the 
beginning point.

    Dated: January 15, 2015.
Mary G. Ryan,
Acting Administrator.
    Approved: January 21, 2015.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and Tariff Policy).
[FR Doc. 2015-03371 Filed 2-17-15; 8:45 am]
BILLING CODE 4810-31-P