[Federal Register Volume 71, Number 136 (Monday, July 17, 2006)]
[Proposed Rules]
[Pages 40465-40468]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-11080]



[[Page 40465]]

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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 9

[Notice No. 61]
RIN 1513-AB23


Proposed Expansion of the Alexander Valley Viticultural Area 
(2005R-501P)

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 
expand the Alexander Valley viticultural area in Sonoma County, 
California, by 1,300 acres along its northwestern boundary line. 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 amendment to our 
regulations.

DATES: We must receive written comments on or before September 15, 
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. 61, 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, the appropriate 
maps, and any comments we receive about this proposal 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, CA 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 product 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 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 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 
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. Petitioners may use the same procedure to 
request changes involving existing viticultural areas. 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.

Alexander Valley Viticultural Area Expansion Petition

    Patrick Shabram of Shabram Consulting, with the support of vineyard 
owner Anthony Martorana, proposes a 1,300-acre expansion of the 
Alexander Valley viticultural area (27 CFR 9.53) along the current 
diagonal northwestern boundary line. The expansion would result in a 
viticultural area of 67,710 acres.
    The proposed expansion area starts 1 mile south-southwest of 
Cloverdale and continues south for another 2 miles, according to the 
USGS Cloverdale Quadrangle map and written boundary description 
submitted by the petitioner. The shape of the proposed expansion area 
resembles a triangle with one side running along the Alexander Valley 
viticultural area's existing diagonal northwestern boundary line.
    The Seven Arches Vineyards, according to the petitioner, straddles 
that diagonal northwestern boundary line, with approximately 10 acres 
outside of the existing Alexander Valley viticultural area. The 
proposed expansion area, the petitioner continues, would incorporate 
into the Alexander Valley viticultural area all of Seven Arches 
Vineyards and the entire 20 acres of Icaria Vineyards, both of which 
are located along Hiatt Road and Icaria Creek. Another vineyard, Jeke 
Vineyards, lies immediately inside the existing boundary line, 
according to a petition map outlining the vineyards of the area. The 
table below explains the relationship of these three vineyards to the 
existing diagonal northwestern boundary line of the Alexander Valley 
viticultural area.

------------------------------------------------------------------------
Vineyard name (Icaria Creek and Hiatt Road
                  areas)                          Vineyard location
------------------------------------------------------------------------
Jeke Vineyards............................  \1/10\ mile inside of the
                                             boundary line.
Seven Arches Vineyards....................  Straddles the boundary line.
Icaria Vineyards..........................  \4/10\ mile outside of the
                                             boundary line.
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    We summarize below the evidence presented in the petition in 
support of the proposed expansion of the Alexander Valley viticultural 
area.

Name Evidence

    The proposed expansion area, according to the petitioner, is 
historically identified with Cloverdale, a town located at the northern 
end of the Alexander Valley viticultural area. In ``History of the 
Sonoma Viticultural District,'' by Ernest P. Peninou, Nomis Press, 
1998, pages 186-187, it is noted that Parker Vineyards was established 
in 1890 in the proposed expansion area. Mr. Peninou identifies Parker 
Vineyards as a part of the viticultural history of Cloverdale. The 
petitioner explains that vineyards in the Cloverdale area, except for 
the two vineyards in the proposed expansion area, lie within the 
original boundaries of the Alexander Valley viticultural area.
    An article entitled ``The Early Wineries of the Cloverdale Area,'' 
by William A. Cordtz, Ph.D., ran in the March/April 1985 edition of 
Wine West; the article states that grape-growing started in Cloverdale 
before other areas of Alexander Valley. It explains that viticulture in 
the upper Alexander Valley was centered around Cloverdale and 
flourished between 1880 and Prohibition. Also, the Cloverdale Reveille, 
a local area newspaper, ran articles about grape-growing and in 1878 
reported prices of local grapes at $8 per ton.
    Shortly after the establishment of the original viticultural area, 
the petitioner states, some wine industry members erroneously believed 
that the proposed expansion area already lay inside the Alexander 
Valley viticultural area boundary. As an example, the petitioner states 
that Jade Mountain Vineyards labeled a 1985 Icaria Vineyards wine with 
the Alexander Valley viticultural area name, while a map submitted with 
the petition shows Icaria Vineyards as lying within the proposed 
expansion area.

Boundary Evidence

    The established Alexander Valley viticultural area's diagonal, 
northwestern boundary line trends northwest-southeast. The line 
connects section 24, T. 11 N., R. 11 W. to the map point at 38[deg]45' 
latitude and 123[deg]00' longitude in section 5, T. 10 N., R. 10 W., of 
the USGS Cloverdale Quadrangle map.
    When the original Alexander Valley viticultural area was proposed 
(see T.D. ATF-187, 49 FR 42724, October 24, 1984), several petitioning 
groups proposed differing boundaries for the proposed viticultural 
area. Ultimately, the Bureau of Alcohol, Tobacco and Firearms (ATF), 
TTB's predecessor, determined that the Alexander Valley viticultural 
area's boundary should encompass the area from southeast of Healdsburg 
to north of Cloverdale in Sonoma County. The proposed westerly 
expansion area, according to the USGS Cloverdale Quadrangle map, is 
approximately 1 mile south-southwest of Cloverdale.
    The petitioner provided a map of the Alexander Valley viticultural 
area published by the Sonoma County Grape Growers Association in 1998. 
The map shows the current viticultural area boundaries and displays the 
vineyards within the proposed expansion area with the same shade of 
dark green used for the vineyards within the current viticultural area 
boundary. In contrast, the vineyards outside the existing boundary 
carry a significantly lighter shade of green. The petitioner contends 
that the wine industry used the map as a geographic analytical tool to 
group all vineyards on the floor and the lower slopes of the Alexander 
Valley.
    Icaria Creek and several of its tributaries, as part of the 
Alexander Valley watershed, run through the proposed expansion area and 
drain into the Russian River. In an interview in the Healdsburg Tribune 
of December 7, 1979, Robert Young observed that there is only one 
watershed in the entire Alexander Valley. His observation, according to 
the petitioner, supports the expansion petition because the expansion 
area also falls within that watershed.

Distinguishing Features

    The petitioner provides information about distinguishing features 
and evidence to document that the proposed expansion area is similar in 
topography, elevation, soils, and climate to the northwestern region of 
the Alexander Valley viticultural area, inside the existing boundary 
line along Hiatt Road and Icaria Creek.
    The petitioner explains that the existing Alexander Valley 
viticultural area and the proposed expansion area, located on opposite 
sides of the diagonal boundary line, have similar distinguishing 
features. The topography, including range in elevation and the flood 
plains along Icaria Creek, water resources, soils, and climate combine 
to create a similar viticultural environment on both sides of the 
diagonal boundary line, according to the petitioner.
Topography
    The petitioner describes the similar topographic features scattered 
throughout the Icaria Creek area on both sides of the existing 
Alexander Valley viticultural area's diagonal northwestern boundary 
line. The proposed expansion area is at elevations of 360 feet on the 
flood plain along Icaria Creek to 874 feet, according to the USGS 
Cloverdale Quadrangle map. Similar topography exists immediately east 
and inside the Alexander Valley viticultural area's diagonal boundary 
line. Elevations there, as noted on the USGS Cloverdale Quadrangle map, 
range from a low of 320 feet on the flood plain along Icaria Creek to a 
high of 884 feet.
    Icaria Creek, and its tributaries, run through both the east and 
the west sides of the Alexander Valley viticultural area's diagonal 
boundary line to the Russian River, as shown on the USGS Cloverdale 
Quadrangle map. Also, Hiatt Road meanders along Icaria Creek and some 
of its tributaries on both sides of the diagonal boundary line.
    The petitioner explains that the terrain west of the proposed 
expansion area becomes increasingly steep and mountainous and that 
elevations climb to some 1,600 feet, as shown on the USGS Cloverdale 
Quadrangle map. The mountainous terrain contrasts with the lower 
elevations and the gentle valley landscape of the Alexander Valley 
region shown on the map. The petitioner adds that the westerly 
mountainous terrain creates an unsuitable environment for viticulture.
    The vineyards in the proposed expansion area generally lie on the 
lower, flatter terrain of the flood plain along Icaria Creek, according 
to the diagrams on the map in the petition. The elevations generally 
range between 350 and 450 feet, but the southernmost part of the Seven 
Arches Vineyards reaches 590 feet. Jeke Vineyards, which is within the 
Alexander Valley viticultural area's western boundary line, lies 
between 350 and 380 feet of elevation on the flood plain along Icaria 
Creek, the petitioner states. Thus, Jeke Vineyards, which is 
immediately inside the east side of the diagonal boundary line, and the 
Icaria and Seven Arches Vineyards, which are in the proposed expansion 
area on the west side of the diagonal boundary line, do not vary 
substantially in their overall elevations and their relative locations 
on the flood plain.
Soils
    The petitioner explains that the distinguishing soils in the Icaria 
Creek and Hiatt Road areas in the proposed expansion area include the 
Hugo-Josephine-Laughlin association. According to the Soil Survey of 
Sonoma County, California, issued in 1972 by

[[Page 40467]]

the United States Department of Agriculture, Soil Conservation Service, 
the soils in this association are well drained, gently sloping to very 
steep gravelly loam. This soil association, according to the 
petitioner, is common on the western slopes of the Alexander Valley, 
including much of the existing viticultural area. The predominant soil 
associations in the Alexander Valley viticultural area, the petitioner 
continues, are the Yolo-Cortina-Pleasanton, Goulding-Toomes-Guenoc, and 
Hugo-Josephine-Laughlin associations, which are also in the proposed 
expansion area.
Climate
    The petitioner states that the climate of the proposed expansion 
area closely reflects that of the area to its immediate east and inside 
the viticultural area boundary line. Both areas, the petitioner states, 
are similar in vegetative cover, elevation, topographic features, and 
latitudinal coordinates.
    The entire Alexander Valley viticultural area has a coastal warm 
climate type, according to the model Climate Types of Sonoma County, 
originally developed by Robert Sisson and shown on the 1986 Vossen map, 
provided with the petition. This model uses the total daily hours of 
temperatures between 70 and 90 degrees F. The petitioner explains that 
the temperature range is the most significant factor for photosynthesis 
in the grapevines.
    Climatic variations have not been recorded along Icaria Creek and 
Hiatt Road between the existing Alexander Valley viticultural area and 
the proposed expansion area. However, the manager of the Seven Arches 
Vineyards writes that along Hiatt Road, on both sides of the diagonal 
boundary line of the existing Alexander Valley viticultural area, the 
climate is similar, if not identical. The petitioner explains that the 
climatic variations in inland northern Sonoma County result from 
coastal, or marine, influences to the west. Thus, in northern Alexander 
Valley, which is located in inland northern Sonoma County, climatic 
variations are less because of the diminished coastal influence on the 
region.

Boundary Description

    See the changes to the narrative boundary description for the 
petitioned-for viticultural area expansion in the proposed regulatory 
text amendment published at the end of this notice.

Maps

    The petitioner provided the required maps, which are already listed 
in the Sec.  9.53 regulatory text.

Impact on Current Wine Labels

    The proposed expansion of the Alexander Valley viticultural area 
will not affect currently approved wine labels. The approval of this 
proposed expansion may allow additional vintners to use ``Alexander 
Valley'' as an appellation of origin on their 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 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 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). In 
addition, regulations regarding the use of a brand name containing a 
viticultural area name on a label are found in 27 CFR 4.39(i).

Public Participation

Comments Invited

    We invite comments from interested members of the public on whether 
we should expand the Alexander Valley viticultural area as described 
above. We are especially interested in comments concerning the 
similarity of the proposed expansion area to the currently existing 
Alexander Valley viticultural area. Please provide any available 
specific information in your comments about the proposed expansion 
area's name, proposed boundaries, or distinguishing features.

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 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- by 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.
    We will post this notice and any comments we receive on this 
proposal on the TTB Web site. All name and address information 
submitted with comments will be posted, including e-mail addresses. 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.

[[Page 40468]]

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 
title 27, chapter 1, 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. Section 9.53 is amended by revising paragraph (c)(5), 
redesignating paragraphs (c)(6) through (c)(44) as (c)(9) through 
(c)(47), and adding new paragraphs (c)(6) through (c)(8) to read as 
follows:


Sec.  9.53  Alexander Valley.

* * * * *
    (c) * * *
* * * * *
    (5) Then straight south along the eastern boundary line of Section 
25, to its intersection with Kelly Road, a medium-duty road, T. 11 N., 
R. 11 W.;
    (6) Then southwest along Kelly Road to its intersection with the 
northern boundary line of Section 36, T. 11 N., R. 11 W.;
    (7) Then straight south to its intersection with 38[deg]45' N. 
latitude along the southern border of the Cloverdale Quadrangle map, T. 
10 N., R. 11 W. and R. 10 W.;
    (8) Then straight east to its intersection with the 123[deg]00' E. 
longitude at the southeastern corner of the Cloverdale Quadrangle map, 
T. 10 N., R. 10 W.;
* * * * *

    Signed: June 28, 2006.
John J. Manfreda,
Administrator.
[FR Doc. E6-11080 Filed 7-14-06; 8:45 am]
BILLING CODE 4810-31-P