[Federal Register Volume 72, Number 56 (Friday, March 23, 2007)]
[Rules and Regulations]
[Pages 13690-13693]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-5413]


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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 9

[T.D. TTB-60; Re: Notice No. 58]
RIN: 1513-AB18


Green Valley of Russian River Valley Viticultural Area (2005R-
412P)

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

ACTION: Final rule; Treasury decision.

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SUMMARY: This Treasury decision renames the ``Sonoma County Green 
Valley'' viticultural area in northern California as the ``Green Valley 
of Russian River Valley'' viticultural area. This decision does not 
affect the location, size, or boundary of the viticultural area. 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.

DATES: Effective Dates: This final rule is effective on April 23, 2007. 
Wine bottlers may continue to use approved labels bearing the former 
viticultural area name until April 23, 2009.

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

[[Page 13691]]

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. The Sonoma County Green Valley 
viticultural area lies between the towns of Sebastopol, Forestville, 
and Occidental within the Russian River Valley viticultural area (27 
CFR 9.66), which, in turn, lies entirely within the Sonoma Coast 
viticultural area (27 CFR 9.116) and the multi-county North Coast 
viticultural area (27 CFR 9.30).
    (T.D. ATF-161 mistakenly stated the size of the Sonoma County Green 
Valley viticultural area as 32,000 acres. When this viticultural area 
was originally established in 1983, its total acreage was miscalculated 
since its boundaries did not coincide with the 640-acre sections marked 
on the USGS quadrangle maps, which made determining its size difficult. 
Since 1983, new digital technology has been developed that allows for 
more accurate calculations even when boundaries do not align with the 
section lines on USGS maps. Such technology was used to map this 
viticultural area and to determine its correct size--19,010 acres.)
    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 geographic 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 name proposed for the 
viticultural area to prevent consumer confusion with other ``Green'' 
valleys located elsewhere in the United States. The subsequent T.D. 
ATF-161, establishing the Sonoma County Green Valley viticultural area, 
stated that since both ``Green Valley'' viticultural areas are located 
in northern California, the inclusion of the county name modifier 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, petitioned TTB to change the name of the ``Sonoma County 
Green Valley'' viticultural area to ``Green Valley of Russian River 
Valley.'' The group explained 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. Also, 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 Sonoma County Green Valley 
viticultural area boundary line, 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 name as an appellation of origin on their labels, the 
petition continues, 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, would provide greater clarity 
regarding the viticultural area's location and its association with the 
cool climate of the Russian River Valley. Thus, the petition continues, 
consumers would have more accurate and descriptive geographical and 
climatic information for the wines of the viticultural area.

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, is 
generally consistent with the boundaries of both viticultural areas, 
including the (at that time) proposed boundary expansion of the 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 wine 
production, 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, coinciding 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 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 on page 24 as a small sub-
appellation of the Russian River Valley viticultural area. The article 
also describes Green Valley's marine-influenced climate and the 
Goldridge series soils, which are conducive to growing fruit. Also, the 
publication on page 18 contains an untitled map of Sonoma County's 
rural western expanse that identifies the Sonoma County Green Valley 
viticultural area simply as ``Green Valley.''

Linkage of Two Viticultural Area Names

    By linking the name of the Green Valley viticultural area to 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 of northern California, 
as well as between the Green Valley in Sonoma County and other 
``Green'' valleys in the United States. TTB believes that adoption of 
the proposed

[[Page 13692]]

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.
    In addition, we note that we have previously approved a 
viticultural area name that includes the name of a surrounding 
viticultural area within it 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 (27 CFR 9.161). 
(See T.D. TTB-9, published in the Federal Register at 69 FR 8562 on 
February 25, 2004.)

Notice of Proposed Rulemaking

    On May 2, 2006, TTB published in the Federal Register (71 FR 25795) 
Notice No. 58 regarding the proposed Sonoma County Green Valley 
viticultural area name change. We received no comments in response to 
that notice.

TTB Finding

    After careful review of the petition, TTB finds that the evidence 
submitted supports changing the name of the ``Sonoma County Green 
Valley'' viticultural area to ``Green Valley of Russian River Valley,'' 
as requested in the petition. Therefore, under the authority of the 
Federal Alcohol Administration Act and part 4 of our regulations, we 
amend our regulations to re-name the Sonoma County Green Valley 
viticultural area as the Green Valley of Russian River Valley 
viticultural area effective 30 days from the publication date of this 
document.

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. With approval of this viticultural area name change, 
the new name, ``Green Valley of Russian River Valley,'' will be 
recognized under 27 CFR 4.39(i)(3) as a name of viticultural 
significance. The text of the new regulation clarifies this point. This 
name change will affect vintners who currently and properly use the 
``Sonoma County Green Valley'' viticultural area name, as explained in 
the Transition Period discussion below.
    We also remain of the view that it would not 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.
    Therefore, the part 9 regulatory text as amended in this document 
specifies that only the full ``Green Valley of Russian River Valley'' 
name is a term of viticultural significance for purposes of part 4 of 
the TTB regulations. Consequently, wine bottlers using the entire name, 
``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.
    For a wine to be labeled with a viticultural area name or with a 
brand name that includes a viticultural area name or other term 
identified as viticulturally significant 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 or other term, 
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 or other viticulturally significant term and that name or other 
term 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 or other term 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 a 
viticultural area name or other viticulturally significant term 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

    Holders of labels approved before the effective date of this final 
rule that use the ``Sonoma County Green Valley'' name to designate a 
viticultural area will be permitted to continue using those approved 
labels during the two year transition period. At the end of that two-
year 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 will provide 
such label holders with adequate time to use up their old labels. In 
addition, ``Sonoma County Green Valley'' will remain a term of 
viticultural significance for two years from the effective date of this 
final rule.

Regulatory Flexibility Act

    We certify that this regulation will not have a significant 
economic impact on a substantial number of small entities. This 
regulation imposes no new reporting, recordkeeping, or other 
administrative requirement. Any benefit derived from the use of a 
viticultural area name is 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

    N. A. Sutton of the Regulations and Rulings Division drafted this 
notice.

List of Subjects in 27 CFR Part 9

    Wine.

The Regulatory Amendment

0
For the reasons discussed in the preamble, we amend 27 CFR, chapter I, 
part 9, 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. In Sec.  9.57, the section heading, paragraph (a), the introductory 
text of paragraph (b), and the introductory text of paragraph (c) are 
revised and a new paragraph (d) is added 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. ``Sonoma County Green Valley'' is 
also

[[Page 13693]]

a term of viticultural significance until April 23, 2009.
    (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 April 23, 2007, the name of this 
viticultural area was ``Sonoma County Green Valley''. Effective April 
23, 2007, 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 April 23, 2009.

    Signed: January 3, 2007.
John J. Manfreda,
Administrator.
    Approved: February 1, 2007.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and Tariff Policy).
[FR Doc. E7-5413 Filed 3-22-07; 8:45 am]
BILLING CODE 4810-31-P