[Federal Register Volume 71, Number 84 (Tuesday, May 2, 2006)]
[Proposed Rules]
[Pages 25795-25798]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-6538]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 9

[Notice No. 58]
RIN: 1513-AB18


Proposed Sonoma County Green Valley Viticultural Area Name Change 
(2005R-412P)

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 ``Sonoma County Green Valley'' viticultural area as the 
``Green Valley of Russian River Valley'' viticultural area. The area's 
size and boundaries would remain unchanged. This northern California 
viticultural area is totally within the Russian River Valley 
viticultural area, the Sonoma Coast viticultural area, and the multi-
county North Coast viticultural area. We designate viticultural areas 
to allow vintners to better describe the origin of wines and to allow 
consumers to better identify the wines they may purchase. We invite 
comments on this proposed change to our regulations.

DATES: We must receive written comments on or before July 3, 2006.

ADDRESSES: You may send comments to any of the following addresses:
     Director, Regulations and Rulings Division, Alcohol and 
Tobacco Tax and Trade Bureau, Attn: Notice No. 58, P.O. Box 14412, 
Washington, DC 20044-4412.
     202-927-8525 (facsimile).
     [email protected] (e-mail).
     http://www.ttb.gov/alcohol/rules/index.htm. An online 
comment form is posted with this notice on our Web site.
     http://www.regulations.gov (Federal e-rulemaking portal; 
follow instructions for submitting comments).
    You may view copies of this notice, the petition, and any comments 
we receive about this notice by appointment at the TTB Information 
Resource Center, 1310 G Street, NW., Washington, DC 20220. To make an 
appointment, call 202-927-2400. You may also access copies of the 
notice and comments online at http://www.ttb.gov/alcohol/rules/index.htm.
    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.

FOR FURTHER INFORMATION CONTACT: N. A. Sutton, Regulations and Rulings 
Division, Alcohol and Tobacco Tax and Trade Bureau, 925 Lakeville St., 
No. 158, Petaluma, California 94952; telephone 415-271-1254.

SUPPLEMENTARY INFORMATION:

Background on Viticultural Areas

TTB Authority

    Section 105(e) of the Federal Alcohol Administration Act (the FAA 
Act, 27 U.S.C. 201 et seq.) requires that alcohol beverage labels 
provide consumers with adequate information regarding a product's 
identity and prohibits the use of misleading information on those 
labels. The FAA Act also authorizes the Secretary of the Treasury to 
issue regulations to carry out its provisions. The Alcohol and Tobacco 
Tax and Trade Bureau (TTB) administers these regulations.
    Part 4 of the TTB regulations (27 CFR part 4) allows the 
establishment of distinct 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 a 
viticultural area allows vintners to more accurately describe the 
origin of their wines to consumers and helps consumers to identify 
wines they may purchase. However, the 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.

[[Page 25796]]

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.
    A petition requesting the modification of an established 
viticultural area must include the appropriate evidence described above 
to support the requested modification.

Sonoma County Green Valley Viticultural Area Background

    TTB's predecessor agency, the Bureau of Alcohol, Tobacco and 
Firearms (ATF), established the Sonoma County Green Valley viticultural 
area (27 CFR 9.57) in a Treasury Decision (T.D. ATF-161), published in 
the Federal Register at 48 FR 52577 on November 21, 1983. The 19,010-
acre Sonoma County Green Valley viticultural area is located north of 
San Francisco in southern Sonoma County. (T.D. ATF-161 mistakenly 
stated the size of the Sonoma County Green Valley viticultural area as 
32,000 acres.) The Sonoma County Green Valley viticultural area lies 
between the towns of Sebastopol, Forestville, and Occidental within the 
western region of the Russian River Valley viticultural area (27 CFR 
9.66), which lies entirely within the Sonoma Coast viticultural area 
(27 CFR 9.116) and the multi-county North Coast viticultural area (27 
CFR 9.30).
    In 1982, the original petitioner sought to use the name ``Green 
Valley'' for this viticultural area. However, while ATF determined that 
the Green Valley name was appropriate for the area, ATF required the 
addition of ``Sonoma County'' to the name, and thus approved the name 
``Sonoma County Green Valley'' as the viticultural area name. ATF took 
this action to avoid consumer confusion since ``Green Valley'' is a 
commonly used geographical place name in the United States.
    In approving the Sonoma County Green Valley viticultural area, ATF 
specifically noted its 1982 approval of the ``Solano County Green 
Valley'' viticultural area (27 CFR 9.44) with the same condition--that 
the county name appear in conjunction with the viticultural area's name 
to prevent consumer confusion with other ``Green'' valleys elsewhere in 
the United States. T.D. ATF-161 stated that since both ``Green Valley'' 
viticultural areas are located in northern California, the inclusion of 
the county name modifiers in each viticultural area name helped to 
avoid consumer confusion by distinguishing between the two viticultural 
areas.

Green Valley of Russian River Valley Petition

    The Winegrowers and Vintners of Sonoma County's Green Valley, an 
association of local winegrowers and vintners based in Sebastopol, 
California, has petitioned TTB to change the name of the ``Sonoma 
County Green Valley'' viticultural area to ``Green Valley of Russian 
River Valley.'' The group explains in its petition that the name change 
is warranted because the viticultural area is commonly referred to as 
``Green Valley,'' without the Sonoma County modifier, and because the 
Green Valley area is considered by many to be a sub-appellation of the 
Russian River Valley viticultural area by virtue of its location and 
similar climate.
    TTB notes that the recently expanded 126,600-acre Russian River 
Valley viticultural area now encompasses the entire Sonoma County Green 
Valley viticultural area. (See T.D. TTB-32, published in the Federal 
Register at 70 FR 53297 on September 8, 2005.) We also note that the 
proposed name change does not affect the established boundaries of 
either viticultural area.
    Three wineries located within the viticultural area at issue, 
according to the petition, consistently claim the ``Sonoma County Green 
Valley'' appellation on their wine labels. Other regional wineries use 
the Russian River Valley viticultural area appellation on their labels, 
the petition explains, but include references to the Sonoma County 
Green Valley viticultural area on their wines' back labels and in their 
promotional materials.
    Changing the viticultural area name to ``Green Valley of Russian 
River Valley,'' the petition explains, will provide greater clarity 
regarding the viticultural area location and its association with the 
cool climate of the Russian River Valley. Thus, the petition states, 
consumers will have more accurate and descriptive geographical and 
climatic information for this viticultural area's wines.

Name Evidence

    The petition provides evidence, summarized below, to document that 
the Sonoma County Green Valley viticultural area is known, and referred 
to, simply as ``Green Valley.'' Also, the same evidence describes 
``Green Valley'' as being a part of the larger Russian River Valley 
viticultural area.
    The Savor Wine Country magazine (winter 2003, page 78), published 
by the Press Democrat newspaper of Sonoma County, California, included 
a feature article on ``Green Valley.'' A map of the ``Green Valley'' 
area and the Russian River Valley area provided with the article 
generally agrees with the boundaries of both viticultural areas, 
including the (at that time) proposed boundary expansion of that 
Russian River Valley viticultural area. The article states that ``Green 
Valley'' is a sub-appellation of the sprawling Russian River Valley 
viticultural area. It also describes the abundant sparkling wines, 
pinot noir grapes, and other agricultural products produced in the 
``Green Valley'' area. The article characterizes the viticultural area 
as a diverse farming region with cool coastal breezes, which coincides 
with the climatic conditions found in the Russian River Valley 
viticultural area.
    A Los Angeles Times article of January 14, 2004, titled ``Out of 
the Mist, Pinots,'' describes the Russian River Valley American 
viticultural area and its ``sub-regions'' as having distinct wine 
personalities. The article states: ``Russian River Valley AVA and the 
Green Valley AVA are primarily climate-based appellations.'' While 
expounding on the exceptional soils of the Russian River Valley 
viticultural area, the article also states: ``The Green Valley AVA (a 
part of the Russian River AVA) yields bright, bold Pinots with 
crystalline fruit and piercing acidity.''
    A recent ``Sonoma County Wine Country Guide,'' published by the 
Sonoma County Wineries Association and included with the petition, 
describes the ``Green Valley'' area as a small sub-appellation of the 
Russian River Valley viticultural area (see the Guide, page 24). The 
article also describes the marine-influenced climate and the Goldridge 
series soils, which are conducive to growing fruit. Also, the 
publication contains an untitled map of Sonoma County's rural western 
expanse that identifies the Sonoma County Green Valley viticultural 
area simply as ``Green Valley'' (see the Guide, page 18).

[[Page 25797]]

Linkage of Two Viticultural Area Names

    In addition, with the establishment of the Oak Knoll District of 
Napa Valley viticultural area (27 CFR 9.161), TTB has approved the use 
of the name of one viticultural area within the name of another 
viticultural area in order to prevent consumer confusion. In that case, 
a petitioner proposed to establish the Oak Knoll District viticultural 
area within the larger Napa Valley viticultural area (27 CFR 9.23) in 
Napa County, California. In order to distinguish the proposed Oak Knoll 
District viticultural area from the established Oak Knoll Winery 
located in Oregon, TTB approved the addition of the ``Napa Valley'' 
name to the area's name, resulting in the establishment of the ``Oak 
Knoll District of Napa Valley'' viticultural area. (See T.D. TTB-9, 
published in the Federal Register at 69 FR 8562 on February 25, 2004.)
    Likewise, by linking the name of the Green Valley viticultural area 
and the larger Russian River Valley viticultural area that surrounds 
it, the petitioners seek to prevent consumer confusion between the two 
established ``Green Valley'' viticultural areas, as well as between the 
Green Valley in Sonoma County and other ``Green'' valleys in the United 
States. Therefore, TTB believes that adoption of the proposed new 
``Green Valley of Russian River Valley'' name would be permissible so 
long as it accurately reflects the geographical location of the 
viticultural area and does not otherwise create confusion for the 
consumer.

Impact on Current Wine Labels

General

    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, ``Green Valley of Russian River Valley,'' will be 
recognized as a name of viticultural significance. If approved, this 
name change will affect vintners who appropriately use the original 
``Sonoma County Green Valley.''
    While ``Russian River Valley'' and ``Solano County Green Valley,'' 
as viticultural area names, are also terms of viticultural 
significance, we do not believe it would be appropriate to treat 
``Green Valley'' standing alone as a term of viticultural significance 
due to its widespread use across the United States as a geographic 
place name. For example, a recent search of the USGS Geographic Names 
Information System (http://geonames.usgs.gov/) found 65 entries for 
``Green Valley'' in 23 States, including at least 13 places in 
California in 11 different counties.
    Consequently, wine bottlers using the entire descriptor, ``Green 
Valley of Russian River Valley,'' 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 
viticultural area's name as an appellation of origin. Accordingly, the 
proposed part 9 regulatory text amendments set forth in this document 
specify that the name ``Green Valley of Russian River Valley'' is a 
term of viticultural significance for purposes of part 4 of the TTB 
regulations.
    For a wine to be eligible to use as an appellation of origin the 
name of a viticultural area specified in part 9 of the TTB regulations, 
at least 85 percent of the grapes used to make the wine must have been 
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 to use the viticultural area name as an appellation of origin 
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 viticultural area name 
appears in another reference on the label in a misleading manner, the 
bottler would have to obtain approval of a new label. Accordingly, if a 
new label or a previously approved label uses the name ``Green Valley 
of Russian River Valley'' for a wine that does not meet the 85 percent 
standard, the new label will not be approved, and the previously 
approved label will be subject to revocation, upon the effective date 
of this proposed name change.
    Different rules apply if a wine 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)(2) for details.

Transition Period

    If the proposed ``Green Valley of Russian River Valley'' name is 
adopted as a final rule, holders of labels using the current ``Sonoma 
County Green Valley'' name that were approved by the effective date of 
the final regulation changing the viticultural area name to ``Green 
Valley of Russian River Valley'' will be permitted to continue using 
those approved labels for two years from the effective date of the 
final rule. At the end of this two-year transition period, holders of 
``Sonoma County Green Valley'' wine labels must discontinue use of 
those labels and will need to secure approval of new labels reflecting 
the correct use of the new viticultural area name as an appellation of 
origin. We believe the two year period should provide such label 
holders with adequate time to use up their old labels.

Public Participation

Comments Invited

    We invite comments from interested members of the public on the 
appropriateness of changing the name of the established ``Sonoma County 
Green Valley'' viticultural area to ``Green Valley of Russian River 
Valley'' and the proposed two year transition period. We are 
particularly interested in comments on any possible effects that the 
use of this changed name would have on the use of the established 
Russian River Valley and Solano County Green Valley viticultural area 
names, including any potential conflicts with existing brand names.
    TTB will consider only comments concerning the re-naming of the 
Sonoma County Green Valley viticultural area and the transition period. 
The proposed name change of Sonoma County Green Valley viticultural 
area does not affect its boundaries or those of the Russian River 
Valley viticultural area. With each comment submitted, please provide 
all available specific information that supports the position of the 
comment.

Submitting Comments

    Please submit your comments by the closing date shown above in this 
notice. Your comments must include this notice number and your name and 
mailing address. Your comments must be legible and written in language 
acceptable for public disclosure. We do not acknowledge receipt of 
comments, and we consider all comments as originals. You may submit 
comments in one of five ways:
     Mail: You may send written comments to TTB at the address 
listed in the ADDRESSES section.
     Facsimile: You may submit comments by facsimile 
transmission to 202-927-8525. Faxed comments must--
    (1) Be on 8.5- by 11-inch paper;
    (2) Contain a legible, written signature; and
    (3) Be no more than five pages long. This limitation assures 
electronic access to our equipment. We will not accept faxed comments 
that exceed five pages.
     E-mail: You may e-mail comments to [email protected]. Comments 
transmitted by electronic mail must--
    (1) Contain your e-mail address;
    (2) Reference this notice number on the subject line; and
    (3) Be legible when printed on 8.5- by 11-inch paper.
     Online form: We provide a comment form with the online 
copy of

[[Page 25798]]

this notice on our Web site at http://www.ttb.gov/alcohol/rules/index.htm. Select the ``Send comments via e-mail'' link under this 
notice number.
     Federal e-rulemaking portal: To submit comments to us via 
the Federal e-rulemaking portal, visit http://www.regulations.gov and 
follow the instructions for submitting comments.
    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 material is part of the public record and subject to 
disclosure. Do not enclose any material in your comments that you 
consider confidential or inappropriate for public disclosure.

Public Disclosure

    You may view copies of this notice, the petition, the appropriate 
maps, and any comments we receive by appointment at the TTB Information 
Resource Center at 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 202-927-
2400 to schedule an appointment or to request copies of comments.
    For your convenience, we will post this notice and any comments we 
receive on this proposal on the TTB Web site. We may omit voluminous 
attachments or material that we consider unsuitable for posting. In all 
cases, the full comment will be available in the TTB Information 
Resource Center. To access the online copy of this notice and the 
submitted comments, visit http://www.ttb.gov/alcohol/rules/index.htm. 
Select the ``View Comments'' link under this notice number to view the 
posted comments.

Regulatory Flexibility Act

    We certify that this proposed regulation, 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, 58 FR 51735. 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 1, 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 9.57 is amended by revising the section heading, 
paragraph (a), the introductory text of paragraphs (b) and (c), and by 
adding a new paragraph (d), to read as follows:


Sec.  9.57  Green Valley of Russian River Valley.

    (a) Name. The name of the viticultural area described in this 
section is ``Green Valley of Russian River Valley.'' For purposes of 
part 4 of this chapter, ``Green Valley of Russian River Valley'' is a 
term of viticultural significance.
    (b) Approved Maps. The appropriate maps for determining the 
boundary of the Green Valley of Russian River Valley viticultural area 
are three United States Geological Survey maps. They are titled:
* * * * *
    (c) Boundary. The Green Valley of Russian River Valley viticultural 
area is located in Sonoma County, California. The beginning point is 
located in the northeastern portion of the ``Camp Meeker Quadrangle'' 
map where the line separating section 31 from section 32, in Township 8 
North (T.8N.), Range 9 West (R.9W.) intersects River Road.
* * * * *
    (d) From December 21, 1983, until [INSERT DATE ONE DAY BEFORE 
EFFECTIVE DATE OF THE FINAL RULE], the name of this viticultural area 
was ``Sonoma County Green Valley''. Effective [INSERT EFFECTIVE DATE OF 
THE FINAL RULE], this viticulture area is named ``Green Valley of 
Russian River Valley''. Existing certificates of label approval showing 
``Sonoma County Green Valley'' as the appellation of origin will be 
revoked by operation of this regulation on [INSERT DATE 2 YEARS AFTER 
EFFECTIVE DATE OF THE FINAL RULE].

    Signed: March 29, 2006.
John J. Manfreda,
Administrator.
[FR Doc. E6-6538 Filed 4-28-06; 8:45 am]
BILLING CODE 4810-31-P