[Federal Register Volume 69, Number 90 (Monday, May 10, 2004)]
[Rules and Regulations]
[Pages 25831-25835]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-10513]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 9

[T.D. TTB-11; Re: Notice No. 11]
RIN 1513-AC81


Columbia Gorge Viticultural Area (2002R-03P)

AGENCY: Alcohol and Tobacco Tax and Trade Bureau, Treasury.

ACTION: Final rule; Treasury decision.

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SUMMARY: This Treasury decision establishes the Columbia Gorge 
viticultural area in Hood River and Wasco Counties, Oregon, and 
Skamania and Klickitat Counties, Washington, approximately 60 miles 
east of Portland, Oregon. We designate viticultural areas to allow 
bottlers to better describe the origin of wines and allow consumers to 
better identify the wines they may purchase.

DATES: Effective Date: July 9, 2004.

FOR FURTHER INFORMATION CONTACT: N.A. Sutton, Program Manager, 
Regulations and Procedures Division, Alcohol and Tobacco Tax and Trade 
Bureau, 6660 Delmonico Drive, D422, Colorado Springs, CO 
80919; telephone (415) 271-1254.

SUPPLEMENTARY INFORMATION:

[[Page 25832]]

TTB Background

Homeland Security Act Impact on Rulemaking

    Effective January 24, 2003, the Homeland Security Act of 2002 
divided the Bureau of Alcohol, Tobacco and Firearms into the Alcohol 
and Tobacco Tax and Trade Bureau (TTB) in the Department of the 
Treasury and the Bureau of Alcohol, Tobacco, Firearms and Explosives in 
the Department of Justice. TTB regulates wine labeling, including 
viticultural area designations.

Background on Viticultural Areas

Tax and Trade Bureau Authority

    The Federal Alcohol Administration Act (FAA Act) at 27 U.S.C. 
205(e) requires that alcohol beverage labels provide the consumer with 
adequate information regarding a product's identity, while prohibiting 
the use of misleading information on such labels. The FAA Act also 
authorizes the Secretary of the Treasury to issue regulations to carry 
out the Act's provisions, and the Secretary has delegated authority to 
administer those regulatory provisions to TTB.
    Regulations in 27 CFR part 4, Labeling and Advertising of Wine, 
allow the establishment of definitive viticultural areas and the use of 
their names as appellations of origin on wine labels and in wine 
advertisements. Title 27 CFR part 9, American Viticultural Areas, 
contains the list of approved viticultural areas.

Definition

    Title 27 CFR 4.25(e)(1) defines an American viticultural area as a 
delimited grape-growing region distinguishable by geographical 
features, the boundaries of which have been recognized and defined in 
part 9. These designations allow consumers and vintners to attribute a 
given quality, reputation, or other characteristic of wine made from 
grapes grown in an area to its geographic origin. We believe that the 
establishment of viticultural areas allows wineries to describe more 
accurately the origin of their wines to consumers and helps consumers 
identify the wines they purchase. Establishment of a viticultural area 
is neither an approval nor endorsement by TTB of the wine produced in 
that area.

Impact on Current Wine Labels

    Viticultural area names have geographic significance. Our 27 CFR 
part 4 label regulations prohibit the use of a brand name with 
geographic significance on a wine unless the wine meets the appellation 
of origin requirements for the named area. Our regulations also 
prohibit any label references that suggest an origin other than the 
true place of origin of the wine.
    With the establishment of this viticultural area, bottlers who use 
``Columbia Gorge'' as a brand name, including a trademark, or in other 
label references to indicate the origin of the wine must ensure that 
their product is eligible to use the name of the viticultural area as 
an appellation of origin and that the use of the name is otherwise not 
misleading as to the origin of the wine. For a wine to be eligible to 
use a name listed in part of our regulations as an appellation of 
origin, at least 85 percent of the grapes used to make the wine must 
have been grown within the viticultural area. If the wine is not 
eligible to use the viticultural area name and such name appears in the 
brand name of the wine, bottlers must change the brand name of that 
wine and obtain approval of a new label.
    Different rules apply if a wine in this category has a brand name 
containing a viticultural area name that was used as a brand name on a 
label approved before July 7, 1986. See 27 CFR 4.39(i) for details.

Requirements

    Section 4.25(e)(2) outlines the procedure for proposing an American 
viticultural area. Anyone interested may petition TTB to establish a 
grape-growing region as a viticultural area. The petition must 
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 specified in the 
petition;
     Evidence that growing conditions, such as climate, soils, 
elevation, physical features, etc., distinguish the proposed area from 
surrounding areas;
     A description of the specific boundary of the proposed 
viticultural area, based on features shown on United States Geological 
Survey (USGS) maps or USGS-approved maps; and
     Copies of the appropriate map(s) with the boundary 
prominently marked.

Columbia Gorge Petition

    Mark Wharry, for the Columbia River Gorge Wine Growers Association, 
petitioned ATF to establish ``Columbia Gorge'' viticultural area in 
Hood River and Wasco Counties, Oregon, and Skamania and Klickitat 
Counties, Washington. The 280 square mile Columbia Gorge viticultural 
area is located about 60 miles east of Portland, Oregon, straddles the 
Columbia River for 15 miles, and extends into south-central Washington 
and north-central Oregon. The area surrounds Hood River, Oregon, and 
White Salmon, Washington, and is generally bordered by B Z Corner, 
Washington, on the north; Lyle, Washington, on the east; Parkdale, 
Oregon, on the south; and Vinzenz Lausmann State Park, Oregon, on the 
west. The area is just west of the established Columbia Valley 
viticultural area and shares a part of its border with that area.

Supporting Evidence for Establishment of Columbia Gorge

Evidence That the Name of the Area is Locally or Nationally Known

    Local residents know this narrow, winding valley, with its steeply 
rising bluffs as ``the Gorge,'' ``Columbia Gorge,'' and ``Columbia 
River Gorge,'' and debate whether the name should be ``Columbia Gorge'' 
or ``Columbia River Gorge,'' since they use both terms. The term 
``Columbia River Gorge'' often appears as a more formal title, such as 
the Columbia River Gorge National Scenic Area and the Columbia River 
Gorge National Fish Hatcheries.
    The ``Columbia Gorge'' name is the most common usage, as stated in 
the petition, and connotes an area smaller in size than the Federally 
designated Columbia River Gorge National Scenic Area. Examples of this 
usage include the Columbia Gorge Interpretive Center of the Skamania 
County Historical Society, the Columbia Gorge Discovery Center of the 
Wasco County Historical Museum, and various businesses and tourist 
attractions. Promotional groups such as the Skamania County Chamber of 
Commerce, Cascade Locks, use maps titled ``Experience the Columbia 
Gorge'' and ``Heart of the Columbia Gorge.''

Historical and Current Evidence That Supports the Boundary

    Growers have raised grapes in the Columbia Gorge for over a 
century. In the 1880s, the Jewitt family, founders of the town of White 
Salmon, Washington, built terraces on a wide south-facing slope on the 
bluff above Bingen, Washington. They planted American vines that they 
had brought with them from Illinois. Also, the pioneering Balfour and 
Meress families brought grape cuttings to the Columbia Gorge. John 
Balfour, the youngest son of English Lord Balfour, planted grape vines 
in the early 1900s near the current location of Lyle, Washington. 
Leonis and Elizah Meress brought grape cuttings to the area from their 
native Adele Nord, a village in one of France's

[[Page 25833]]

coldest regions. Some of the vinifera vines they planted are still 
alive and have withstood temperatures well below zero.
    Interest in grape growing in the Columbia Gorge was renewed in the 
early 1960s when experimental plots were planted in White Salmon, 
Washington. Later, commercial plots were planted under the direction of 
Washington State University. Today the Columbia River Gorge Wine 
Growers Association is comprised of 24 growers and 4 wineries. 
Currently, 284 acres are planted to wine grapes in the Columbia Gorge 
viticultural area, with more being planted each year.

Evidence of Distinctive Growing Conditions

    The Columbia Gorge viticultural area's boundary is based on a 
combination of topographic, soil, and climatic factors that contrast 
with the nearby Columbia Valley and Willamette Valley viticultural 
areas. Much of the boundary line is the 2,000-foot elevation line, 
which encloses lower elevations and flatter agricultural areas with 
loamy soils. Above the 2,000-foot elevation boundary line the terrain 
becomes steeper and has gravelly soils more suitable for timber.
Topography
    The Columbia River, twisting and turning on a westbound course, 
carved the Columbia Gorge, with its sides of steep cliffs, into the 
landscape. These sides range from sheer rock faces, comprised of 
volcanic outcroppings of igneous and metamorphic rock, to gentle stair-
step benchlands formed by prehistoric lava flows. These benchlands have 
deep soil and good sun exposure, making them desirable for vineyards.
    The Gorge funnels the Pacific's moist marine air to its west and 
the drier inland air to its east, back and forth. The Columbia Gorge 
viticultural area benefits from these prevailing winds, which moderate 
temperatures that otherwise might be warmer in the summer and cooler in 
the winter.
Soils
    Soil types within the boundaries of the Columbia Gorge viticultural 
area are silty loams, as opposed to the more gravelly soils found 
outside the area. As the valleys on both the Washington and Oregon 
sides of the area slope up to the surrounding hills, the terrain 
becomes much steeper, and the soil types change noticeably.
    Permeability of the silty loams found within the Columbia Gorge 
viticultural area is slow to moderate, and the available water capacity 
is high. Effective rooting depth is 60 inches or more. Soils include 
Chemawa, Underwood Loam, McGowen, Wyest Silt Loam, Van Horn, Parkdale 
Loam, and Oak Grove Loam series.
    By contrast, the soils immediately surrounding the Columbia Gorge 
viticultural area, both above the 2,000-foot elevation line and 
eastward to the Columbia Valley, are generally gravelly with higher 
permeability. These soils typically support sloped timber areas at more 
than 2,000 feet above sea level. Examples of soils outside the area are 
the Steeper McElroy, Undusk Gravelly Loam, Husum Gravelly Loam, Rock 
Outcrop, Bins-Bindle, Yallani, and Hesslan-Skyline series.
Rainfall
    Yearly rainfall totals determine the eastern and western borders of 
the Columbia Gorge viticultural area. To the west, the land has more 
rainfall, cloud cover, and vegetative growth, which results in 
benchlands unsuitable for viticulture. To the east, the terrain is more 
arid.
    Annual rainfall within the Columbia Gorge viticultural area ranges 
from 30 inches on the west side of the Hood River, Oregon, to 18 inches 
near its eastern boundary at Lyle, Washington. By comparison, west of 
the Columbia Gorge viticultural area boundary the Bonneville Dam 
averages 77.54 inches and Skamania, Washington, averages 85.49 inches 
of annual rainfall. To the east of the boundary line, The Dalles, 
Oregon, averages 14.52 inches and Yakima, Washington, averages 8.21 
inches of rainfall annually.
Temperature
    The average growing temperatures within the Columbia Gorge 
viticultural area range from 62 degrees (Appleton and Wind River, 
Washington) to 65 degrees (Hood River, Oregon), as compared to 61 
degrees to the west in Skamania and 71.6 degrees to the east in The 
Dalles. In general, grapes grown in this viticultural area are early 
varietals, such as Pinot Noir and Gewurztraminer, which require fewer 
high temperature days. By contrast, the Columbia Valley viticultural 
area is able to grow much later varieties, e.g., Merlot and Cabernet 
Sauvignon, due to significantly higher degree growing days.

Rulemaking Proceedings

Notice of Proposed Rulemaking

Comments
    TTB published a notice of proposed rulemaking regarding the 
establishment of the Columbia Gorge viticultural area in the June 27, 
2003, Federal Register as Notice No. 11 (68 FR 38251). In that notice, 
TTB requested comments by August 26, 2003, from anyone interested. We 
received 16 favorable comments and no unfavorable comments. Washington 
wine industry members provide the majority of comments. Members of the 
public, a home winemaker, and a restaurant owner also commented 
favorably on the establishment of the Columbia Gorge viticultural area.

Regulatory Analyses and Notices

Regulatory Flexibility Act

    We certify that this regulation will not have a significant 
economic impact on a substantial number of small entities. It imposes 
no new reporting, recordkeeping, or other administrative requirement. 
Any benefit derived from the use of the Columbia Gorge 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 rule is not a significant regulatory action as defined by 
Executive Order 12866, 58 FR 51735. Therefore, it requires no 
regulatory assessment.

Drafting Information

    The principal author of this document is N.A. Sutton, Regulations 
and Procedures Division, Alcohol and Tobacco Tax and Trade Bureau.

List of Subjects in 27 CFR Part 9

    Wine.

Authority and Issuance

0
For the reasons discussed in the preamble, we amend title 27, Code of 
Federal Regulations, part 9, American Viticultural Areas, 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.


0
2. Add a new Sec.  9.178 to subpart C to read as follows:

Subpart C--Approved American Viticultural Areas

* * * * *

[[Page 25834]]

Sec.  9.178  Columbia Gorge.

    (a) Name. The name of the viticultural area described in this 
section is ``Columbia Gorge''.
    (b) Approved Maps. The appropriate maps for determining the 
boundary of the Columbia Gorge viticultural area are 10 United States 
Geological Survey, 1:24,000 scale, topographic maps. They are--
    (1) Hood River Quadrangle, Oregon--Washington, 1994;
    (2) Northwestern Lake Quadrangle, Washington, 1983;
    (3) Husum Quadrangle, Washington--Klickitat Co., 1994;
    (4) Appleton Quadrangle, Washington--Klickitat Co., 1994;
    (5) Lyle Quadrangle, Washington--Oregon, 1994;
    (6) Brown Creek Quadrangle, Oregon, 1994;
    (7) Ketchum Reservoir Quadrangle, Oregon, 1994;
    (8) Parkdale Quadrangle, Oregon--Hood River Co., 1994;
    (9) Dee Quadrangle, Oregon--Hood River Co., 1994; and
    (10) Mt. Defiance Quadrangle, Oregon--Washington, 1994.
    (c) Boundary. The Columbia Gorge viticultural area is located in 
Hood River and Wasco Counties, Oregon, and Skamania and Klickitat 
Counties, Washington. The area's point of beginning is on the Hood 
River map, at the intersection of Washington State Highway 14 and the 
R9E-R10E line, close to Tunnel 4, on the north bank of the Columbia 
River. From this point, the boundary line--
    (1) Goes 1.5 miles straight north along the R9E-R10E line to the 
northwest corner of section 19, T3N, R10E (Hood River Quadrangle);
    (2) Continues 2 miles straight east along the section line to the 
northeast corner of section 20, T3N, R10E (Hood River Quadrangle);
    (3) Goes 4.1 miles straight north along the section line, crossing 
onto the Northwestern Lake map, to the northwest corner of section 33, 
T4N, R10E (Northwestern Lake Quadrangle);
    (4) Continues 1 mile straight east on the section line to the 
northeast corner of section 33, T4N, R10E (Northwestern Lake 
Quadrangle);
    (5) Goes 1 mile straight north on the section line to the northwest 
corner of section 27, T4N, R10E (Northwestern Lake Quadrangle);
    (6) Continues 1 mile straight east on the section line to the 
northeast corner of section 27, T4N, R10E (Northwestern Lake 
Quadrangle);
    (7) Goes 3.8 miles north on the section line to its intersection 
with the T4N-T5N line, R10E (Northwestern Lake Quadrangle);
    (8) Continues 4 miles straight east on the T4N-T5N line, crossing 
onto the Husum map, to the northeast corner of section 5, R11E (Husum 
Quadrangle);
    (9) Goes 2 miles straight south on the section line to the 
southwest corner of section 9, T4N, R11E (Husum Quadrangle);
    (10) Continues 2 miles straight east on the section line to the 
northeast corner of section 15, T4N, R11E (Husum Quadrangle);
    (11) Goes 3 miles straight south on the section line to the 
southwest corner of section 26, T4N, R11E (Husum Quadrangle);
    (12) Continues 2 miles straight east on the section line, crossing 
onto the Appleton map, to the R11E-R12E line (Appleton Quadrangle);
    (13) Goes 1.25 miles straight south on the R11E-R12E line to its 
intersection with the 2,000-foot contour line near the northeast corner 
of section 1, T3N (Appleton Quadrangle);
    (14) Continues 11 miles south along the meandering 2,000-foot 
contour line through sections 1 and 12; then generally east through 
sections 7, 18, 8, and 9 to section 10; then generally north, weaving 
back and forth between sections 3, 4, 33, and 34; then south to section 
3, until the 2,000-foot contour line first intersects the section line 
between sections 2 and 3, near a creek and an unnamed light duty road, 
T3N, R12E (Appleton Quadrangle);
    (15) Goes 5.1 miles straight south on the section line, crossing 
onto the Lyle map, and continuing south until it intersects with the 
Klickitat River along the section 34 east boundary line, T3N, R12E 
(Lyle Quadrangle);
    (16) Continues 0.9 mile generally southwest along the Klickitat 
River until it joins the Columbia River, and then continues 0.4 mile 
southwest in a straight line to the Washington-Oregon State line in the 
center of the Columbia River, section 3, T2N, R12E (Lyle Quadrangle);
    (17) Follows the Oregon-Washington state line 2.4 miles generally 
southeast until it intersects with a northward extension of the R12E-
R13E line, T2N (Lyle Quadrangle);
    (18) Goes 11 miles straight south on the R12E-R13E line, crossing 
onto the Brown Creek map, to its intersection with the T1N-T1S Base 
Line at the southeast corner of section 36 (Brown Creek Quadrangle);
    (19) Continues 6.1 miles straight west along the T1N-T1S Base Line, 
crossing onto the Ketchum Reservoir map, to its intersection with the 
R11E-R12E line at the southeast corner of section 36 (Ketchum Reservoir 
Quadrangle);
    (20) Goes 6 miles straight north on the R11E-R12E line to its 
intersection with the T1N-T2N line at the northeast corner of section 1 
(Ketchum Reservoir Quadrangle);
    (21) Continues 6.2 miles straight west on the T1N-T2N line, 
crossing onto the Parkdale map, to its intersection with the R10E-R11E 
line at the southeast corner of section 36 (Parkdale Quadrangle);
    (22) Goes 1.85 miles south on the R10E-R11E line to its 
intersection with the 2,000-foot contour line near the southeast corner 
of section 12, T1N, R10E (Parkdale Quadrangle);
    (23) Continues 10.1 miles along the meandering 2,000-foot contour 
line generally southwest through sections 12, 13, 14, 23, 22, 26, 27, 
and 34 in T1N, and section 4 in T1S, to its intersection with the 
section 4 south boundary line, T1S, R10E (Parkdale Quadrangle);
    (24) Goes 2.4 miles straight west along the section line to its 
intersection with the R9E-R10E line, just west of Trout Creek, at the 
southwest corner of section 6, T1S (Parkdale Quadrangle);
    (25) Continues 1 mile straight north along the R9E-R10E line to its 
intersection with the T1S-T1N Base Line at the northwest corner of 
section 6 (Parkdale Quadrangle);
    (26) Goes 1.3 miles straight west along the T1S-T1N Base Line, 
crossing onto the Dee map, to its intersection with the R9E-R10E line 
at the southwest corner of section 21 (Dee Quadrangle);
    (27) Continues 3.1 miles north along the R9E-R10E line to the 
southeast corner of section 13, T1N (Dee Quadrangle);
    (28) Goes 2 miles west along the section line to the southwest 
corner of section 14, T1N, R9E (Dee Quadrangle);
    (29) Continues 1 mile straight north along the section line to the 
northwest corner of section 14, T1N, R9E (Dee Quadrangle);
    (30) Goes 1 mile east along the section line to the northeast 
corner of section 14, T1N, R9E (Dee Quadrangle);
    (31) Continues 2 miles straight north along the section line until 
its intersection with the T1N-T2N line, R9E (Dee Quadrangle);
    (32) Goes 1 mile straight east along the T1N-T2N line to the 
southeast corner of section 36, R9E (Dee Quadrangle);
    (33) Continues 6.75 miles straight north along the R9E-R10E line, 
crossing onto the Mt. Defiance map, to the Washington-Oregon State line 
in the Columbia River, T3N (Mt. Defiance Quadrangle);
    (34) Goes 1 mile straight east-northeast along the State line, 
crossing onto the Hood River map, to its

[[Page 25835]]

intersection with a southward extension of the R9E-R10E line, T3N (Hood 
River Quadrangle); and
    (35) Continues 0.6 mile north along the R9E-R10E extension, 
returning to the point of beginning at its intersection with the 
Washington State Highway 14, close to Tunnel 4, on the north bank of 
the Columbia River (Hood River Quadrangle).

    Dated: March 26, 2004.
Arthur J. Libertucci,
Administrator.
    Approved: April 20, 2004.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and Tariff Policy).
[FR Doc. 04-10513 Filed 5-7-04; 8:45 am]
BILLING CODE 4810-31-P