Federal Register / Vol. 80, No. 32 / Wednesday, February 18, 2015 / Rules and Regulations 8529 

Dated: February 12, 2015. 

Kevin J. Wolf, 

Assistant Secretary for Export 

Administration. 

[FR Doc. 2015–03321 Filed 2–17–15; 8:45 am] 

BILLING CODE 3510–33–P 

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. 

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 grapegrowing 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: 

• Evidence that the area within the 

proposed AVA boundary is nationally 

or locally known by the AVA name 

specified in the petition; 

• An explanation of the basis for 

defining the boundary of the proposed 

AVA; 

• 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; 

• 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 

• 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 

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8530 Federal Register / Vol. 80, No. 32 / Wednesday, February 18, 2015 / Rules and Regulations 

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 northeastfacing 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 § 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’’ 

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Federal Register / Vol. 80, No. 32 / Wednesday, February 18, 2015 / Rules and Regulations 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 

■ 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. Subpart C is amended by adding 

§ 9.250 to read as follows: 

§ 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 westsouthwest 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 westsouthwest 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 

DEPARTMENT OF THE TREASURY 

Office of Foreign Assets Control 

31 CFR Part 538 

Sudanese Sanctions Regulations 

AGENCY: Office of Foreign Assets 

Control, Treasury. 

ACTION: Final rule. 

SUMMARY: The Department of the 

Treasury’s Office of Foreign Assets 

Control (OFAC) is adopting a final rule 

amending the Sudanese Sanctions 

Regulations (the ‘‘SSR’’) by adding a 

general license pertaining to certain 

software, hardware, and services 

incident to personal communications. 

OFAC is also making other technical 

and conforming changes. 

DATES: Effective: February 18, 2015. 

FOR FURTHER INFORMATION CONTACT: 

Assistant Director for Licensing, tel.: 

202/622–2480, Assistant Director for 

Policy, tel.: 202/622–6746, Assistant 

Director for Regulatory Affairs, tel.: 202/ 

622–4855, Assistant Director for 

Sanctions Compliance & Evaluation, 

tel.: 202/622–2490, Office of Foreign 

Assets Control, or Chief Counsel 

(Foreign Assets Control), tel.: 202/622– 

2410, Office of the General Counsel, 

Department of the Treasury (not toll free 

numbers). 

SUPPLEMENTARY INFORMATION: 

Electronic and Facsimile Availability 

This document and additional 

information concerning OFAC are 

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