[Federal Register Volume 75, Number 212 (Wednesday, November 3, 2010)]
[Rules and Regulations]
[Pages 67616-67618]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2010-27739]



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DEPARTMENT OF THE TREASURY

Alcohol and Tobacco Tax and Trade Bureau

27 CFR Part 9

[Docket No. TTB-2010-0002; T.D. TTB-87; Re: Notice No. 104]
RIN 1513-AB65


Yamhill-Carlton Viticultural Area (2008R-305P)

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

ACTION: Final rule; Treasury decision.

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SUMMARY: This Treasury decision renames the ``Yamhill-Carlton 
District'' viticultural area, located in Yamhill and Washington 
Counties, Oregon, as the ``Yamhill-Carlton'' 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 Date: December 3, 2010.

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 (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 requires that these regulations, 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 
regulations promulgated under the FAA Act.
    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. 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.

Yamhill-Carlton District Viticultural Area Background

    In 2002, TTB's predecessor Agency, the Bureau of Alcohol, Tobacco 
and Firearms, received a petition from Mr. Alex Sokol-Blosser, 
Secretary of the North Willamette Valley [American Viticultural Area] 
Group, and Mr. Ken Wright, on behalf of certain grape growers, to 
establish a new viticultural area called the ``Yamhill-Carlton 
District.'' Located in northwestern Oregon, the Yamhill-Carlton 
District is about 35 miles southwest of Portland, Oregon, and 25 miles 
from the Pacific Ocean, in Yamhill and Washington Counties, Oregon, and 
entirely within the larger Willamette Valley viticultural area (27 CFR 
9.90).
    On October 7, 2003, TTB published in the Federal Register (68 FR 
57845) Notice No. 19, proposing the establishment of the Yamhill-
Carlton District viticultural area. In response to that notice, the 
only comment TTB received was in support of the proposed establishment. 
On December 9, 2004, TTB published in the Federal Register (69 FR 
71372) Treasury Decision (T.D.) TTB-20, establishing the Yamhill-
Carlton District viticultural area (27 CFR 9.183) as proposed.
    T.D. TTB-20 states that the Yamhill-Carlton District viticultural 
area boundary line surrounds the towns of Yamhill and Carlton, which 
lie 3 miles apart, along Route 47, in Yamhill County. The ``Name 
Evidence'' section states that the first time the two names were used 
together was in the 1853 establishment of the Yamhill-Carlton Pioneer 
Cemetery. The cemetery is identified on the USGS Carlton Quadrangle map 
(published in 1957; revised in 1992). The name was used again in 1955, 
when the Yamhill-Carlton Union High School was established in the 
Yamhill-Carlton School District. Residents still use the ``Yamhill-
Carlton'' name today.

Petition To Change to the Yamhill-Carlton District Viticultural Area 
Name

    In 2008, Mr. Ken Wright, of Ken Wright Cellars, submitted a 
petition to TTB to change the name of the viticultural area from 
``Yamhill-Carlton District'' to ``Yamhill-Carlton.'' In this petition, 
Mr. Wright asserts that when the viticultural area was originally 
proposed ``[t]he inclusion of the word `District' was completely 
discretionary and added only to enforce the idea of the AVA [American 
viticultural area] being a regionalized area.'' Further, he states that 
``[h]istorically, the area has always been referred to as simply 
`Yamhill-Carlton.' Additionally, the length of the current name is very 
difficult to fit on a [wine] label. Many wineries have found it 
impossible, given their current label graphics, to utilize the name.''
    Many others joined Mr. Wright, writing letters included with the 
petition, in support of renaming the Yamhill-Carlton District 
viticultural area as the Yamhill-Carlton viticultural area. Kathie 
Oriet, Mayor of the city of Carlton, Oregon, wrote: ``As Mayor of the 
small city of Carlton, I feel the

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viticultural area designation should represent the more commonly known 
name of Yamhill-Carlton. Many area joint ventures are known as Yamhill-
Carlton in both Yamhill and Carlton, including the local school 
district, local sports groups and even the community luncheon group.''
    Laurent Montalieu, winemaker at Solena Cellars, stated: 
``Historically, the area has been more commonly referred to [as] 
Yamhill-Carlton rather than the Yamhill-Carlton District, as well as 
the wines.'' Mr. Mantalieu also noted that a change to the shorter 
``Yamhill-Carlton'' would be helpful in printing [wine] labels.
    David Grooters, owner of Carlton Cellars, explained: ``The area is 
always referred to as Yamhill-Carlton. As in: `I went to Yamhill-
Carlton High School,' or `I grew up in Yamhill-Carlton.' The simpler 
Yamhill-Carlton AVA [name] would be much preferable for use in our 
labeling and marketing materials.''
    Brian O'Donnell of Belle Pente Vineyard and Winery stated that the 
region is more generally known as ``Yamhill-Carlton,'' not ``Yamhill-
Carlton District.'' Mr. O'Donnell added: ``I believe that there is a 
broad consensus with the Yamhill-Carlton winegrower community that 
making this change is the right thing to do, and I hope that the TTB 
will be able to take action.''
    Jacki Bessler of Barbara Thomas Wines stated that shortening the 
name ``will greatly impact our ability to attractively place the AVA 
designation on our label. Perhaps more important, however, is that by 
adding the word `District' to Yamhill-Carlton, we have actually moved 
away [from] historical and geographic accuracy. I personally know of no 
other geographic, public, historic, or other Yamhill-Carlton name that 
has the term `district' attached. We are known, simply, by Yamhill-
Carlton.''

Name Evidence

    TTB notes that the 2002 petition to establish the Yamhill-Carlton 
District viticultural area included entries in the local telephone book 
for the Yamhill-Carlton School District and the Yamhill-Carlton High 
School.
    The current petition provides several recent examples of usage of 
the Yamhill-Carlton name without the word ``District.'' On March 17, 
2007, the Community Press newspaper ran an advertisement for a dance 
sponsored by the Yamhill-Carlton Booster Club at the Yamhill-Carlton 
High School cafeteria. The Lincoln County School District Boys 
Basketball online schedule (accessed February 11, 2008) showed that the 
Yamhill-Carlton Tournament had been scheduled for November 30 and 
December 1, 2007. The Oregonian, a newspaper published in Portland, 
reported ``Yamhill-Carlton 6, Seaside 5'' in prep baseball (date 
unknown). A flyer, distributed by the Yamhill-Carlton Anti-Drug 
Coalition to announce it would meet on January 25, [2008] at 7 p.m., 
was addressed to ``Dear Yamhill-Carlton Community Partner.'' On 
February 11, 2008, ``The Statesman Journal'' reported biographical 
information online about Ed Glad, candidate for State Representative 
and formerly a member of the Yamhill-Carlton High School Site Counsel, 
according to the petition.
    Additional examples of the use of the Yamhill-Carlton name provided 
with the petition include: (1) An e-mail announcing the Yamhill-Carlton 
Community Luncheon; (2) a brown bag lunch event with the police chiefs 
of Yamhill and Carlton as the guest speakers at Yamhill City Hall, on 
February 12, 2008; (3) a June 1, 2008, photograph showing the sign for 
the ``Historic Yamhill-Carlton Pioneer Memorial Cemetery, Established 
1853''; and (4) a listing for the ``Yamhill-Carlton FFA Alumni'' with 
the Oregon Future Farmers of America Association.

Search for the Term ``Yamhill-Carlton''

    A TTB query of the ``Yamhill-Carlton'' name on the USGS Geographic 
Names Information System database yielded no hits for the exact 
``Yamhill-Carlton'' name usage. However, our query of the ``Yamhill-
Carlton'' name using an Internet search engine yielded 44,000 results, 
some of which reference the existing Yamhill-Carlton District 
viticultural area within the general area of the Yamhill-Carlton region 
in northwest Oregon.

Notice of Proposed Rulemaking and Comments Received

    On March 4, 2010, TTB published in the Federal Register (75 FR 
9831) Notice No.104 setting forth a proposal to change the Yamhill-
Carlton District viticultural area name to Yamhill-Carlton. We received 
no comments in response to that notice; we had received five letters of 
comment, all in support of the name change, with Mr. Wright's 2008 
petition.

TTB Finding

    After careful review of the petition, TTB finds that the evidence 
submitted supports changing the name of the ``Yamhill-Carlton 
District'' viticultural area to ``Yamhill-Carlton.'' Therefore, under 
the authority of the Federal Alcohol Administration Act and part 4 of 
our regulations, we amend Sec.  9.183 of the TTB regulations to re-name 
the Yamhill-Carlton District viticultural area as the Yamhill-Carlton 
viticultural area, effective 30 days from the publication date of this 
document.

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. With approval of this viticultural area name change, 
the new name, ``Yamhill-Carlton,'' will be recognized under 27 CFR 
4.39(i)(3) as a term of viticultural significance. The text of the 
amended regulation clarifies this point. This name change will affect 
vintners who currently and properly use the ``Yamhill-Carlton 
District'' viticultural area name as explained in the Transition Period 
for ``Yamhill-Carlton District'' Labels discussion below. ``Yamhill-
Carlton'' has been recognized as a term of viticultural significance by 
TTB since the establishment of the Yamhill-Carlton District 
viticultural area. Therefore, dropping ``District'' from the 
viticultural area name will not change the viticultural significance of 
the term ``Yamhill-Carlton.''
    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 being 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 for labeling with the 
viticultural area name or other viticulturally significant term and 
that name or 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 of viticultural significance 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 term of viticultural significance 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 for ``Yamhill-Carlton District'' Labels

    With adoption of the final rule renaming this viticultural area, 
under the new regulatory text, current holders of labels that were 
approved before the effective date of the final rule that use the 
``Yamhill-Carlton District'' name to

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designate a viticultural area will be permitted to use those approved 
labels during a 2-year transition period. At the end of the 2-year 
period, holders of approved ``Yamhill-Carlton District'' wine labels 
must discontinue their use as their certificates of label approval will 
be revoked by operation of the final rule. (See 27 CFR 13.51 and 
13.72(a)(2).) The new regulatory text includes a statement to this 
effect as a new paragraph (d) in Sec.  9.183. We believe the 2-year 
period will provide such label holders with adequate time to use up 
their supply of previously approved ``Yamhill-Carlton District'' 
labels.
    TTB notes that label holders who continue to use labels showing the 
``Yamhill-Carlton District'' name during the transition period also may 
apply for certificates of label approval with the Yamhill-Carlton name, 
and use such labels, if approved.

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. 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 title 27 CFR, 
chapter 1, 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. Section 9.183 is amended by revising the section heading, paragraph 
(a), and the introductory text of paragraphs (b) and (c), and by adding 
paragraph (d) to read as follows:


Sec.  9.183  Yamhill-Carlton.

    (a) Name. The name of the viticultural area described in this 
section is ``Yamhill-Carlton''. For purposes of part 4 of this chapter, 
``Yamhill-Carlton'' is a term of viticultural significance.
    (b) Approved maps. The appropriate maps for determining the 
boundary of the Yamhill-Carlton viticultural area are eight 1:24,000 
scale United States Geological Survey topography maps. They are titled:
* * * * *
    (c) Boundary. The Yamhill-Carlton viticultural area is located in 
Yamhill and Washington Counties, Oregon, and is entirely within the 
Willamette Valley viticultural area. The Yamhill-Carlton viticultural 
area is limited to lands at or above 200 feet in elevation and at or 
below 1,000 feet in elevation within its boundary, which is described 
as follows--
* * * * *
    (d) From February 7, 2005, until December 2, 2010, the name of this 
viticultural area was ``Yamhill-Carlton District''. Effective December 
3, 2010, this viticulture area is named ``Yamhill-Carlton''. Existing 
certificates of label approval showing ``Yamhill-Carlton District'' as 
an appellation of origin are revoked by operation of this regulation on 
December 3, 2012.

    Signed: July 20, 2010.
John J. Manfreda,
Administrator.
    Approved: September 2, 2010.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and Tariff Policy).
[FR Doc. 2010-27739 Filed 11-2-10; 8:45 am]
BILLING CODE 4810-31-P