Proposed Establishment of the Calistoga Viticultural Area (2003R-496P), 65256-65261 [E7-22715]
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Federal Register / Vol. 72, No. 223 / Tuesday, November 20, 2007 / Proposed Rules
List of Subjects in 21 CFR Part 1310
Drug traffic control, Exports, Imports,
Reporting and recordkeeping
requirements.
For the reasons set forth above, 21
CFR part 1310 is proposed to be
amended as follows:
PART 1310—RECORDS AND
REPORTS OF LISTED CHEMICALS
AND CERTAIN MACHINES [AMENDED]
(ii), (g)(1)(i) through (vii), and adding
paragraphs (g)(1)(viii) and (ix) to read as
follows:
1. The authority citation for part 1310
continues to read as follows:
§ 1310.04
Maintenance of records.
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Authority: 21 U.S.C. 802, 827(h), 830,
871(b), 890.
2. Section 1310.04 is amended by
revising paragraphs (f)(1)(i) table and
Code
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(vii) Phenylpropanolamine, its salts,
optical isomers, and salts of optical
isomers
(viii) Red phosphorus
(ix) White phosphorus (Other names:
Yellow Phosphorus)
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3. Section 1310.10 is amended by
revising paragraph (a) introductory text
to read as follows:
§ 1310.10 Removal of the exemption of
drugs distributed under the Food, Drug and
Cosmetic Act.
(a) The Administrator may remove
from exemption under section
1300.02(b)(28)(i)(D) any drug or group of
drugs that the Administrator finds is
being diverted to obtain a listed
chemical for use in the illicit production
of a controlled substance. In removing a
drug or group of drugs from the
exemption the Administrator shall
consider:
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4. Section 1310.14 is added to read as
follows:
§ 1310.14 Removal of exemption from
definition of regulated transaction.
The Administrator finds that the
following drugs or groups of drugs are
being diverted to obtain a listed
chemical for use in the illicit production
of a controlled substance and removes
the drugs or groups of drugs from
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Threshold by base weight
N-Acetylanthranilic acid, its esters, and its salts ..............................................................
Anthranilic acid, its esters, and its salts ...........................................................................
Benzaldehyde ...................................................................................................................
Benzyl cyanide ..................................................................................................................
Ergonovine and its salts ...................................................................................................
Ergotamine and its salts ...................................................................................................
Ethylamine and its salts ....................................................................................................
Hydriodic acid ...................................................................................................................
Isosafrole ..........................................................................................................................
Methylamine and its salts .................................................................................................
3, 4-Methylenedioxyphenyl-2-propanone .........................................................................
N-Methylephedrine, its salts, optical isomers, and salts of optical isomers ....................
N-Methylpseudoephedrine, its salts, optical isomers, and salts of optical isomers .........
Nitroethane .......................................................................................................................
Norpseudoephedrine, its salts, optical isomers, and salts of optical isomers .................
Phenylacetic acid, its esters, and its salts .......................................................................
Piperidine and its salts .....................................................................................................
Piperonal (also called heliotropine) ..................................................................................
Propionic anhydride ..........................................................................................................
Safrole ...............................................................................................................................
(ii) For List I chemicals that are
contained in scheduled listed chemical
products as defined in
§ 1300.02(b)(34)(i), the thresholds
established in paragraph (g) of this
section apply only to non-retail
distribution, import, and export. Sales
of these products at retail are subject to
the requirements of Part 1314 of this
chapter.
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(g) * * *
(1) * * *
(i) Ephedrine, its salts, optical
isomers, and salts of optical isomers
(ii) Gamma-Butyrolactone (Other
names include: GBL; Dihydro-2(3H)furanone; 1,2-Butanolide; 1,4Butanolide; 4-Hydroxybutanoic acid
lactone; gamma-hydroxybutyric acid
lactone)
(iii) Hypophosphorous acid and its
salts (including ammonium
hypophosphite, calcium hypophosphite,
iron hypophosphite, potassium
hypophosphite, manganese
hypophosphite, magnesium
hypophosphite, and sodium
hypophosphite)
(iv) Iodine
(v) N-phenethyl-4-piperidone (NPP)
(vi) Pseudoephedrine, its salts, optical
isomers, and salts of optical isomers
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(1) * *
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40 kilograms.
30 kilograms.
4 kilograms.
1 kilogram.
10 grams.
20 grams.
1 kilogram.
1.7 kilograms (or 1 liter by volume).
4 kilograms.
1 kilogram.
4 kilograms.
1 kilogram.
1 kilogram.
2.5 kilograms.
2.5 kilograms.
1 kilogram.
500 grams.
4 kilograms.
1 gram.
4 kilograms.
exemption under § 1300.02(b)(28)(i)(D)
of this chapter pursuant to the criteria
listed in § 1310.10 of this part:
(a) Nonprescription drugs containing
ephedrine, its salts, optical isomers, and
salts of optical isomers.
(b) Nonprescription drugs containing
pseudoephedrine, its salts, optical
isomers, and salts of optical isomers.
(c) Nonprescription drugs containing
phenylpropanolamine, its salts, optical
isomers, and salts of optical isomers.
Dated: November 7, 2007.
Michele M. Leonhart,
Deputy Administrator.
[FR Doc. E7–22560 Filed 11–19–07; 8:45 am]
BILLING CODE 4410–09–P
DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade
Bureau
27 CFR Parts 4 and 9
[Notice No. 77; Re: Notice No. 36]
RIN: 1513–AA92
Proposed Establishment of the
Calistoga Viticultural Area (2003R–
496P)
Alcohol and Tobacco Tax and
Trade Bureau, Treasury.
AGENCY:
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ACTION:
Notice of proposed rulemaking.
SUMMARY: On March 31, 2005, the
Alcohol and Tobacco Tax and Trade
Bureau published a notice of proposed
rulemaking to establish the Calistoga
viticultural area in Napa County,
California. In light of comments
regarding the potential adverse impact
on established brand names that we
received in response to that prior notice,
we issue this new notice of proposed
rulemaking to seek comments on our
proposal to provide ‘‘grandfather’’
protection for certain brand names used
on existing certificates of label approval,
provided those labels also carry
information that would dispel an
impression that the wine meets the
requirements for using the viticultural
area name. 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: We must receive written
comments regarding this notice on or
before December 20, 2007.
ADDRESSES: You may send comments on
this notice to one of the following
addresses:
• https://www.regulations.gov (Federal
e-rulemaking portal; follow the
instructions for submitting comments);
or
• Director, Regulations and Rulings
Division, Alcohol and Tobacco Tax and
Trade Bureau, P.O. Box 14412,
Washington, DC 20044–4412.
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.
You may view copies of this notice
and any comments we receive about this
proposal at https://www.regulations.gov
under Docket No. 2007–0067. You also
may view copies of the previous notice
regarding this subject and the comments
received in response to it under the
same docket number. In addition, you
may view this notice, the previous
notice, all comments received in
response to the two notices, as well as
all related petitions, maps, and
supporting materials, by appointment at
the TTB Information Resource Center,
1310 G Street, NW., Washington, DC
20220. To make an appointment, call
202–927–2400.
FOR FURTHER INFORMATION CONTACT:
Amy R. Greenberg, Regulations and
Rulings Division, Alcohol and Tobacco
Tax and Trade Bureau, 1310 G Street
NW., Suite 200E, Washington, DC
20220; telephone 202–927–8210; or email Amy.Greenberg@ttb.gov.
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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
geographic 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
(AVA) 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 specifies the requirements
for an AVA petition. The petition to
establish Calistoga as an AVA was filed
in accordance with these procedures
and requirements.
Prior Notice of Proposed Rulemaking
On March 31, 2005, TTB published in
the Federal Register (70 FR 16451) as
Notice No. 36 a notice of proposed
rulemaking regarding the establishment
of the Calistoga viticultural area. In that
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notice, we requested comments from all
interested persons by May 31, 2005.
TTB received two comments regarding
Notice No. 36 before the close of the
comment period. Both comments fully
support the establishment of the
Calistoga viticultural area.
Subsequent Comments Received
After the close of the public comment
period, we received representations on
behalf of two entities opposing the
establishment of the Calistoga
viticultural area as proposed. These
entities are Calistoga Partners, L.P.,
d.b.a. Calistoga Cellars, and Chateau
Calistoga LLC, which uses ‘‘Calistoga
Estate’’ as its trade name.
In a written submission to TTB,
representatives of Calistoga Partners,
L.P., expressed opposition to the
establishment of the Calistoga
viticultural area due to the impact the
establishment of an area named
‘‘Calistoga’’ would have on the winery
and its existing wine labels. In
particular, Calistoga Partners noted that
it has been using the ‘‘Calistoga Cellars’’
name on wine labels since 1998. TTB
notes that under 27 CFR 4.25(e), a wine
may be labeled with a viticultural area
appellation if, among other things, at
least 85 percent of the wine is derived
from grapes grown within the
viticultural area named. Calistoga
Partners indicated that its wines would
not meet the 85 percent requirement for
its existing labels if the proposed
viticultural area were established.
Because the winery has been using the
‘‘Calistoga Cellars’’ brand name on its
labels since 1998, it may not rely upon
the ‘‘grandfather’’ provision in 27 CFR
4.39(i)(2), which applies only to brand
names used on certificates of label
approval issued prior to July 7, 1986.
The letter also stated that the
partnership has collectively invested
millions of dollars and years of effort to
build the trade name, trademark, and
brand name ‘‘Calistoga Cellars.’’ Its
representatives claim that to lose the use
of the name or to be restricted in its use
would materially impact the winery. As
to the merits of a ‘‘Calistoga’’
viticultural area, Calistoga Partners
argues that the term ‘‘Calistoga’’ is most
often associated with the town of
Calistoga, which is known as a tourist
destination rather than a specific
viticultural area.
For these reasons, Calistoga Partners
requested that TTB: (1) Reopen the
public comment period to allow it and
others to provide additional comment
on alternative solutions that would
protect Calistoga brand names; (2)
exempt Calistoga Partners from any
restrictive consequences resulting from
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the establishment of the Calistoga
viticultural area through a
‘‘grandfathering’’ approach; (3) delay
approval of the AVA until an industrywide solution is implemented to protect
Calistoga Partners; or (4) allow Calistoga
Partners to continue to use its existing
labels with a TTB-approved notice on
the back label.
As previously noted, TTB also
received comments opposing the
establishment of the ‘‘Calistoga’’
viticultural area on behalf of Chateau
Calistoga LLC, citing the impact that
establishment of the AVA would have
on existing labels bearing the ‘‘Calistoga
Estate’’ trade name. This entity stated
that it has spent considerable money
and time building the ‘‘Calistoga Estate’’
name. According to that entity, its wines
are made under contract with a winery
in Santa Rosa, California, and are
produced with grapes from the Napa
region, but not necessarily from the
Calistoga region. This commenter also
supported use of a ‘‘grandfathering’’
approach.
Revised Regulatory Text Proposed
After careful consideration of the
evidence submitted in support of the
petition and the comments received,
TTB believes that there is a substantial
basis for the establishment of the
viticultural area. The petitioners
submitted sufficient evidence of the
viticultural distinctiveness of the
Calistoga area, and no evidence was
provided to contradict the petitioners’
evidence. TTB also believes that
‘‘Calistoga’’ is the most appropriate
name for the area. There is ample
evidence clearly showing that
‘‘Calistoga’’ is the name by which the
area is locally and regionally known and
that the term ‘‘Calistoga’’ by itself has
been associated historically with
viticulture, specifically Napa Valley
viticulture.
Consistent with previous practice, we
considered alternative names as a means
to resolve conflicts between existing
labels and the establishment of a
‘‘Calistoga’’ proposed viticultural area.
Previously, for example, the ‘‘Oak Knoll
District of Napa Valley’’ viticultural area
(T.D. TTB–9, 69 FR 8562) and the
‘‘Diamond Mountain District’’
viticultural area (T.D. ATF–456, 66 FR
29698) were established after resolving
such conflicts, resulting in AVA names
that were modifications of those
originally proposed by the petitioners.
The petition to establish the ‘‘Oak Knoll
District of Napa Valley’’ viticultural area
originally proposed the name ‘‘Oak
Knoll District’’. The petition to establish
the ‘‘Diamond Mountain District’’
viticultural area originally proposed the
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name ‘‘Diamond Mountain’’ for the
viticultural area. In these and similar
cases, TTB found that name evidence
supported the use of the modified
names, that the modified names were
associated with the proposed
viticultural area boundaries, and that
their use reduced potential consumer
confusion with long-standing existing
labels. In the two cases cited here, Oak
Knoll District of Napa Valley and
Diamond Mountain District, the
petitioners also agreed to the
modifications of the viticultural area
names.
In the case at hand, the petitioners
and commenters have not suggested any
modification to the proposed name that
would resolve conflicts between
existing brand names and the
establishment of a ‘‘Calistoga’’
viticultural area. Moreover, TTB did not
find any potential name modifications
to be acceptable substitutes for the
proposed ‘‘Calistoga’’ viticultural area
name. Because the term ‘‘Calistoga’’
alone is a specific, not generic,
descriptive name that is clearly
associated with Napa Valley viticulture,
regardless of whether there may be
adequate evidence to support a name
modification such as ‘‘Calistoga
District’’, the term ‘‘Calistoga’’ alone has
viticultural significance, and therefore
any viticultural area name including the
term ‘‘Calistoga’’ would be as
problematic as the proposed name.
TTB believes that the evidence
submitted by the petitioners indicates
that designation of the Calistoga
viticultural area would be in conformity
with applicable law and regulations. We
do not find the request by Calistoga
Partners that TTB delay the approval of
the ‘‘Calistoga’’ viticultural area ‘‘until
an industry-wide solution is
implemented to protect Calistoga
Cellars’’ to be an appropriate or
responsive resolution. The Calistoga
case and cases with similar factual bases
involve a fundamental conflict between
two otherwise valid and appropriate
TTB administrative actions, the
approval of labels by TTB through
issuance of COLAs and the subsequent
approval of a petitioned-for AVA.
However, TTB also believes that
Calistoga Partners has demonstrated a
legitimate interest in not losing the
ability to continue to use its long-held
Calistoga Cellars brand name on its
wines in the same way it has been using
this name. We believe it is desirable to
find a solution that will address the
legitimate interests of both the Calistoga
petitioners, who have an interest in
gaining formal recognition of a
viticulturally significant area and name,
and vintners who have an interest in
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retaining the use of long-held brand
names. We also believe, as a
fundamental tenet of administrative
practice, that it is preferable to avoid,
whenever possible, a situation in which
one otherwise proper administrative
action (issuance of a certificate of label
approval in this case) is restricted by a
subsequent, valid administrative action
(establishment of a viticultural area).
And perhaps most importantly, where a
conflict arises between a proposed AVA
name and an established brand name,
we do not believe that, in the context of
the labeling provisions of the FAA Act,
it is an appropriate government role to
make choices between competing
commercial interests, if such choices
can be avoided.
Accordingly, for the reasons stated
above, we are proposing to add in part
9 a new section covering the Calistoga
viticultural area. The new part 9 section
text would differ from the section text
proposed in Notice No. 36 by the
addition of a paragraph (d) to set forth
a ‘‘grandfather’’ provision that allows
continued use of brand names that
contain the term ‘‘Calistoga’’ even
though the wine may not meet the
appellation of origin requirements of
part 4 for the use of the ‘‘Calistoga’’
appellation of origin. Under this
‘‘grandfather’’ provision, a brand name
containing the word ‘‘Calistoga’’ may
only appear on wine that does not meet
the appellation of origin requirements if:
(1) The appropriate TTB officer finds
that the brand name has been in actual
commercial use for a significant period
of time under one or more existing
certificates of label approval that were
issued under part 4 of this chapter
before March 31, 2005; and (2) the wine
is labeled with information that the
appropriate TTB officer finds to be
sufficient to dispel the impression that
the use of ‘‘Calistoga’’ in the brand name
conforms to the appellation of origin
requirements of § 4.25. In no case would
the grandfather provision apply to a
label approved on or after March 31,
2005, the date that Notice No. 36 was
published in the Federal Register
originally proposing the establishment
of the Calistoga viticultural area. The
proposed rule is intended to limit the
adverse effect on established brands,
and at the same time dispel any
misleading impression that might exist
as to the origin of the grapes used in
those wines.
We note that this proposed paragraph
(d) text would not extend to the use of
the name ‘‘Calistoga Estate’’ because
that name was submitted to TTB for
label approval after the notice of
proposed rulemaking was made public
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through publication in the Federal
Register.
This proposal would not affect the
application of the current ‘‘grandfather’’
provision in 27 CFR 4.39(i)(2) to any
Calistoga brand name used in an
existing certificate of label approval
issued prior to July 7, 1986.
In this document we have also
included a proposed amendment to 27
CFR 4.39(i)(1) to conform that text to the
paragraph (d) ‘‘grandfather’’ provision
in the proposed ‘‘Calistoga’’ AVA text in
part 9.
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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. If we
establish this proposed viticultural area,
its name, ‘‘Calistoga,’’ will be
recognized under 27 CFR 4.39(i)(3) as a
name of viticultural significance. The
text of the proposed regulation clarifies
this point. Consequently, wine bottlers
using ‘‘Calistoga’’ in a brand name,
including a trademark, or in another
label reference as to the origin of the
wine, would have to ensure that the
product either is eligible to use the
viticultural area’s name as an
appellation of origin or meets the
requirements for application of the
existing ‘‘grandfather’’ provision or the
‘‘grandfather’’ provision proposed for
the Calistoga AVA.
For a wine to be eligible to use as an
appellation of origin a viticultural area
name or other term specified 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 to use the viticultural area name
or other term as an appellation of origin
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 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 that was used as a brand
name on a label approved before July 7,
1986. In addition to the amendment of
§ 4.39(i)(1) contained in this document,
see 27 CFR 4.39(i)(2) for details.
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Public Participation
Comments Invited
We specifically invite comments from
interested members of the public on the
proposed ‘‘grandfather’’ provision
protecting certain brand names used on
existing certificates of label approval
that contain the proposed ‘‘Calistoga’’
viticultural area name, provided those
labels also carry information that would
dispel an impression that the wine
meets the requirements for using the
viticultural area name. In addition, we
invite comment on the period of time of
actual commercial use that would be
deemed ‘‘significant’’ under the rule,
and on alternatives to the proposed
regulatory text.
We also solicit comments on what
type of dispelling information is
sufficient to prevent consumers from
being misled as to the origin of the
grapes used to produce such wines and
comments on the appropriate type size
and location on the label for such
information. Any other comments
related to the approaches in this
proposed rule are invited.
Comments that provide the factual
basis supporting the views or
suggestions presented will be
particularly helpful in developing a
reasoned regulatory decision of this
matter. However, comments consisting
of mere allegations or opinions are
counterproductive to the rulemaking
process that is designed to build a
factual evidentiary record for the final
rule.
Submitting Comments
You may submit comments on this
notice by one of the following two
methods:
• Federal e-Rulemaking Portal: To
submit a comment on this notice using
the online Federal e-rulemaking portal,
visit https://www.regulations.gov and
select ‘‘Alcohol and Tobacco Tax and
Trade Bureau’’ from the agency dropdown menu and click ‘‘Submit.’’ In the
resulting docket list, click the ‘‘Add
Comments’’ icon for Docket No. 2007–
0067 and complete the resulting
comment form. You may attach
supplemental files to your comment.
More complete information on using
Regulations.gov, including instructions
for accessing open and closed dockets
and for submitting comments, is
available through the site’s ‘‘User Tips’’
link.
• Mail: You may send written
comments to the Director, Regulations
and Rulings Division, Alcohol and
Tobacco Tax and Trade Bureau, P.O.
Box 14412, Washington, DC 20044–
4412.
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65259
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.
If you are commenting on behalf of an
association, business, or other entity,
your comment must include the entity’s
name as well as your name and position
title. If you comment via https://
www.regulations.gov, please enter the
entity’s name in the ‘‘Organization’’
blank of the comment form. If you
comment via mail, please submit your
entity’s comment on letterhead.
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 comments and
attachments are part of the public record
and subject to disclosure. Do not
enclose any material in your comments
that you consider to be confidential or
inappropriate for public disclosure.
Public Disclosure
You may view copies of this notice
and any electronic or mailed comments
we receive about this proposal on the
Federal e-rulemaking portal at https://
www.regulations.gov under Docket No.
2007–0067. You also may view copies of
the previous notice regarding this
subject and the comments received in
response to it under the same docket
number. To view a posted document or
comment, go to https://
www.regulations.gov and select
‘‘Alcohol and Tobacco Tax and Trade
Bureau’’ from the agency drop-down
menu and click ‘‘Submit.’’ In the
resulting docket list, click the
appropriate docket number, then click
the ‘‘View’’ icon for any document or
comment posted under that docket
number.
All submitted and posted comments
will display the commenter’s name,
organization (if any), city, and State,
and, in the case of mailed comments, all
address information, including e-mail
addresses. We may omit voluminous
attachments or material that we
consider unsuitable for posting.
You may also view copies of this
notice, the previous notice, and all
electronic and mailed comments
received in response to the two notices,
as well as all related petitions, maps,
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and supporting materials, by
appointment at the TTB Information
Resource Center, 1310 G Street, NW.,
Washington, DC 20220. You may also
obtain copies at 20 cents per 8.5 x 11inch 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 or other materials.
Regulatory Flexibility Act
We certify that this proposed rule will
not have a significant economic impact
on a substantial number of small
entities. This proposed rule imposes no
new reporting or recordkeeping
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 proposed rule is not a significant
regulatory action as defined by
Executive Order 12866. Therefore, it
requires no regulatory assessment.
Drafting Information
Amy R. Greenberg and Michael D.
Hoover of the Regulations and Rulings
Division drafted this document.
List of Subjects
27 CFR Part 4
Advertising, Customs duties and
inspection, Imports, Labeling, Packaging
and containers, Reporting and
recordkeeping requirements, Trade
practices, Wine.
27 CFR Part 9
Wine.
The Regulatory Amendment
For the reasons discussed in the
preamble, we propose to amend 27 CFR,
chapter I, parts 4 and 9, as follows:
PART 4—LABELING AND
ADVERTISING OF WINE
1. The authority citation for part 4
continues to read as follows:
Authority: 27 U.S.C. 205, unless otherwise
noted.
rmajette on PROD1PC64 with PROPOSALS
2. In § 4.39, paragraph (i)(1) is
amended by adding the words ‘‘or in
§ 9.209(d) of this chapter’’ after
‘‘subparagraph (2)’’.
PART 9—AMERICAN VITICULTURAL
AREAS
3. The authority citation for part 9
continues to read as follows:
Authority: 27 U.S.C. 205.
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15:18 Nov 19, 2007
Jkt 214001
Subpart C—Approved American
Viticultural Areas
4. Subpart C is amended by adding
§ 9.209 to read as follows:
§ 9.209
Calistoga.
(a) Name. The name of the viticultural
area described in this section is
‘‘Calistoga’’. For purposes of part 4 of
this chapter, ‘‘Calistoga’’ is a term of
viticultural significance, but its use in a
brand name is also subject to paragraph
(d) of this section.
(b) Approved maps. The appropriate
maps used to determine the boundary of
the Calistoga viticultural area are four
United States Geological Survey
1:24,000 scale topographic quadrangle
maps. They are titled:
(1) Mark West Springs, Calif. (1993);
(2) Calistoga, CA (1997);
(3) St. Helena, Calif. (1960, revised
1993); and
(4) Detert Reservoir, CA (1997).
(c) Boundary. The Calistoga
viticultural area is located in
northwestern Napa County, California.
The boundary beginning point is on the
Mark West Springs map at the point
where the Napa-Sonoma county line
intersects Petrified Forest Road in
section 3, T8N/R7W. From this point,
the boundary:
(1) Continues northeasterly along
Petrified Forest Road approximately 1.9
miles to the road’s intersection with the
400-foot contour line near the north
bank of Cyrus Creek approximately
1,000 feet southwest of the intersection
of Petrified Forest Road and State Route
128 on the Calistoga map;
(2) Proceeds generally east-southeast
(after crossing Cyrus Creek) along the
400-foot contour line to its intersection
with Ritchey Creek in section 16, T8N/
R6W;
(3) Follows Ritchey Creek northeast
approximately 0.3 miles to its
intersection with State Route 29 at the
347-foot benchmark;
(4) Proceeds east-southeast along State
Route 29 approximately 0.3 miles to its
intersection with a light-duty road
labeled Bale Lane;
(5) Follows Bale Lane northeast
approximately 0.7 miles to its
intersection with the Silverado Trail;
(6) Proceeds northwest along the
Silverado Trail approximately 1,500 feet
to its intersection with an unmarked
driveway on the north side of the
Silverado Trail near the 275-foot
benchmark;
(7) Continues northeasterly along the
driveway for 300 feet to its intersection
with another driveway, and then
continues north-northeast in a straight
line to the 400-foot contour line;
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Frm 00034
Fmt 4702
Sfmt 4702
(8) Follows the 400-foot contour line
easterly approximately 0.7 miles to its
intersection with an unimproved dirt
road (an extension of a road known
locally as the North Fork of Crystal
Springs Road), which lies in the Carne
Humana Land Grant approximately
1,400 feet southwest of the northwest
corner of section 11, T8N/R6W on the
St. Helena map;
(9) Continues northerly along the
unimproved dirt road approximately
2,700 feet to its intersection with the
880-foot contour line in section 2, T8N/
R6W;
(10) Follows the meandering 880-foot
contour line northwesterly, crossing
onto the Calistoga map in section 2,
T8N/R6W, and continues along the 880foot contour line through section 3,
T8N/R6W, sections 34 and 35, T9N/
R6W, (with a brief return to the St.
Helena map in section 35), to the 880contour line’s intersection with Biter
Creek in the northeast quadrant of
section 34, T9N/R6W;
(11) Continues westerly along the
meandering 880-foot contour line
around Dutch Henry Canyon in section
28, T9N/R6W, and Simmons Canyon in
section 29, T9N/R6W, to the contour
line’s first intersection with the R7W/
R6W range line in section 30, T9N/R6W;
(12) Continues northerly along the
meandering 880-foot contour line across
the two forks of Horns Creek and
through Hoisting Works Canyon in
section 19, T9N/R6W, crossing between
the Calistoga and Detert Reservoir maps,
to the contour line’s intersection with
Garnett Creek in section 13, T9N/R7W,
on the Detert Reservoir map;
(13) Continues westerly along the
meandering 880-foot contour line,
crossing between the Calistoga and
Detert Reservoir maps in sections 13
and 14, T9N/R7W, and in the region
labeled ‘‘Mallacomes or Moristul y Plan
de Agua Caliente,’’ to the contour line’s
intersection with the Napa-Sonoma
county line approximately 1.1 miles
northeast of State Route 128 in the
‘‘Mallacomes or Moristul y Plan de
Agua Caliente’’ region, T9N/R7W, of the
Mark Springs West map; and
(14) Proceeds southerly along the
Napa-Sonoma county line to the
beginning point.
(d) Brand names. A brand name
containing the word ‘‘Calistoga’’ may be
used on a label only if:
(1) The wine meets the appellation of
origin requirements of § 4.25 of this
chapter for the viticultural area
established by this section;
(2) The appropriate TTB officer finds
that the brand name has been in actual
commercial use for a significant period
of time under one or more existing
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Federal Register / Vol. 72, No. 223 / Tuesday, November 20, 2007 / Proposed Rules
certificates of label approval that were
issued under part 4 of this chapter
before March 31, 2005, and the wine is
labeled with information that the
appropriate TTB officer finds to be
sufficient to dispel the impression that
the use of ‘‘Calistoga’’ in the brand name
conforms to the appellation of origin
requirements of § 4.25 of this chapter; or
(3) The use of the brand name
complies with § 4.39(i)(2) of this
chapter.
Signed: November 7, 2007.
John J. Manfreda,
Administrator.
Approved: November 7, 2007.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and
Tariff Policy).
[FR Doc. E7–22715 Filed 11–19–07; 8:45 am]
BILLING CODE 4810–31–P
DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade
Bureau
• U.S. mail: Director, Regulations and
Rulings Division, Alcohol and Tobacco
Tax and Trade Bureau, P.O. Box 14412,
Washington, DC 20044–4412; or
• Hand Delivery/Courier in lieu of
mail: Alcohol and Tobacco Tax and
Trade Bureau, 1310 G Street, NW., Suite
200–E, Washington, DC 20005.
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.
You may view copies of this notice
and any comments we receive about this
proposal at https://www.regulations.gov
under Docket No. 2007–0068. You also
may view copies of this notice 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.
FOR FURTHER INFORMATION CONTACT:
Rita
D. Butler, Regulations and Rulings
Division, Alcohol and Tobacco Tax and
Trade Bureau, 1310 G Street, NW., Suite
200–E, Washington, DC 20220;
telephone: 202–927–1608, fax: 202–
927–8525.
27 CFR Parts 4, 9, and 70
[Notice No. 78]
RIN 1513–AB39
SUPPLEMENTARY INFORMATION:
AGENCY:
Alcohol and Tobacco Tax and
Trade Bureau, Treasury.
ACTION: Notice of proposed rulemaking.
rmajette on PROD1PC64 with PROPOSALS
Proposed Revision of American
Viticultural Area Regulations (2006R–
325P)
TTB Authority
SUMMARY: The Alcohol and Tobacco Tax
and Trade Bureau (TTB) proposes to
amend its regulations concerning the
establishment of American viticultural
areas (AVAs). The proposed changes
address the effect that the approval of an
AVA may have on established brand
names. In addition, the proposed
changes provide clearer regulatory
standards for the establishment of AVAs
within AVAs. The proposed
amendments also clarify the rules for
preparing, submitting, and processing
viticultural area petitions. Finally, we
propose to add to the regulations
statements regarding the viticultural
significance of established viticultural
area names, or key portions of those
names, for wine labeling purposes.
DATES: We must receive written
comments on or before January 22,
2008.
ADDRESSES: You may send comments on
this notice to one of the following
addresses:
• E-mail: https://www.regulations.gov
(Federal e-rulemaking portal; follow the
instructions for submitting comments);
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
provides that these regulations should,
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) provides for the establishment of
definitive viticultural areas and for 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) prescribes
the standards for submitting a petition
to establish a new American viticultural
area (AVA) and contains a list with
descriptions of all approved AVAs. Part
70 of the TTB regulations (27 CFR part
70) includes provisions regarding
rulemaking petition procedures.
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Background
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65261
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 geographic features,
the boundaries of which have been
recognized and defined in part 9 of the
TTB regulations. These AVA
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 geographic 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.
Current AVA Petition Process
Section 9.3 of the TTB regulations (27
CFR 9.3) sets forth the procedure and
standards for the establishment of
AVAs. Paragraph (a) of that section
states that TTB will use the rulemaking
process based on petitions received in
accordance with §§ 4.25(e)(2) and
70.701(c) to establish AVAs. Paragraph
(b) of § 9.3 states that a petition for the
establishment of an AVA must contain
the following:
• Evidence that the name of the
viticultural area is locally and/or
nationally known as referring to the area
specified in the application;
• Historical or current evidence that
the boundaries of the viticultural area
are as specified in the application;
• Evidence relating to the
geographical features (climate, soil,
elevation, physical features, etc.) that
distinguish the viticultural features of
the proposed area from surrounding
areas;
• The specific boundaries of the
viticultural area, based on features that
can be found on United States
Geological Survey (U.S.G.S.) maps of
the largest applicable scale; and
• A copy of the appropriate U.S.G.S.
map(s) with the boundaries prominently
marked.
The Need for Regulatory Changes
For a number of reasons, TTB and
Treasury believe that a comprehensive
review of the AVA program is warranted
in order to maintain the integrity of the
program. First, we are concerned that
because the establishment of an AVA
can limit the use of existing brand
names, approval of an AVA can have a
deleterious effect on established
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Agencies
[Federal Register Volume 72, Number 223 (Tuesday, November 20, 2007)]
[Proposed Rules]
[Pages 65256-65261]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-22]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade Bureau
27 CFR Parts 4 and 9
[Notice No. 77; Re: Notice No. 36]
RIN: 1513-AA92
Proposed Establishment of the Calistoga Viticultural Area (2003R-
496P)
AGENCY: Alcohol and Tobacco Tax and Trade Bureau, Treasury.
[[Page 65257]]
ACTION: Notice of proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: On March 31, 2005, the Alcohol and Tobacco Tax and Trade
Bureau published a notice of proposed rulemaking to establish the
Calistoga viticultural area in Napa County, California. In light of
comments regarding the potential adverse impact on established brand
names that we received in response to that prior notice, we issue this
new notice of proposed rulemaking to seek comments on our proposal to
provide ``grandfather'' protection for certain brand names used on
existing certificates of label approval, provided those labels also
carry information that would dispel an impression that the wine meets
the requirements for using the viticultural area name. 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: We must receive written comments regarding this notice on or
before December 20, 2007.
ADDRESSES: You may send comments on this notice to one of the following
addresses:
https://www.regulations.gov (Federal e-rulemaking portal;
follow the instructions for submitting comments); or
Director, Regulations and Rulings Division, Alcohol and
Tobacco Tax and Trade Bureau, P.O. Box 14412, Washington, DC 20044-
4412.
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.
You may view copies of this notice and any comments we receive
about this proposal at https://www.regulations.gov under Docket No.
2007-0067. You also may view copies of the previous notice regarding
this subject and the comments received in response to it under the same
docket number. In addition, you may view this notice, the previous
notice, all comments received in response to the two notices, as well
as all related petitions, maps, and supporting materials, by
appointment at the TTB Information Resource Center, 1310 G Street, NW.,
Washington, DC 20220. To make an appointment, call 202-927-2400.
FOR FURTHER INFORMATION CONTACT: Amy R. Greenberg, Regulations and
Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, 1310 G
Street NW., Suite 200E, Washington, DC 20220; telephone 202-927-8210;
or e-mail Amy.Greenberg@ttb.gov.
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 geographic 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 (AVA) 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 specifies
the requirements for an AVA petition. The petition to establish
Calistoga as an AVA was filed in accordance with these procedures and
requirements.
Prior Notice of Proposed Rulemaking
On March 31, 2005, TTB published in the Federal Register (70 FR
16451) as Notice No. 36 a notice of proposed rulemaking regarding the
establishment of the Calistoga viticultural area. In that notice, we
requested comments from all interested persons by May 31, 2005. TTB
received two comments regarding Notice No. 36 before the close of the
comment period. Both comments fully support the establishment of the
Calistoga viticultural area.
Subsequent Comments Received
After the close of the public comment period, we received
representations on behalf of two entities opposing the establishment of
the Calistoga viticultural area as proposed. These entities are
Calistoga Partners, L.P., d.b.a. Calistoga Cellars, and Chateau
Calistoga LLC, which uses ``Calistoga Estate'' as its trade name.
In a written submission to TTB, representatives of Calistoga
Partners, L.P., expressed opposition to the establishment of the
Calistoga viticultural area due to the impact the establishment of an
area named ``Calistoga'' would have on the winery and its existing wine
labels. In particular, Calistoga Partners noted that it has been using
the ``Calistoga Cellars'' name on wine labels since 1998. TTB notes
that under 27 CFR 4.25(e), a wine may be labeled with a viticultural
area appellation if, among other things, at least 85 percent of the
wine is derived from grapes grown within the viticultural area named.
Calistoga Partners indicated that its wines would not meet the 85
percent requirement for its existing labels if the proposed
viticultural area were established. Because the winery has been using
the ``Calistoga Cellars'' brand name on its labels since 1998, it may
not rely upon the ``grandfather'' provision in 27 CFR 4.39(i)(2), which
applies only to brand names used on certificates of label approval
issued prior to July 7, 1986.
The letter also stated that the partnership has collectively
invested millions of dollars and years of effort to build the trade
name, trademark, and brand name ``Calistoga Cellars.'' Its
representatives claim that to lose the use of the name or to be
restricted in its use would materially impact the winery. As to the
merits of a ``Calistoga'' viticultural area, Calistoga Partners argues
that the term ``Calistoga'' is most often associated with the town of
Calistoga, which is known as a tourist destination rather than a
specific viticultural area.
For these reasons, Calistoga Partners requested that TTB: (1)
Reopen the public comment period to allow it and others to provide
additional comment on alternative solutions that would protect
Calistoga brand names; (2) exempt Calistoga Partners from any
restrictive consequences resulting from
[[Page 65258]]
the establishment of the Calistoga viticultural area through a
``grandfathering'' approach; (3) delay approval of the AVA until an
industry-wide solution is implemented to protect Calistoga Partners; or
(4) allow Calistoga Partners to continue to use its existing labels
with a TTB-approved notice on the back label.
As previously noted, TTB also received comments opposing the
establishment of the ``Calistoga'' viticultural area on behalf of
Chateau Calistoga LLC, citing the impact that establishment of the AVA
would have on existing labels bearing the ``Calistoga Estate'' trade
name. This entity stated that it has spent considerable money and time
building the ``Calistoga Estate'' name. According to that entity, its
wines are made under contract with a winery in Santa Rosa, California,
and are produced with grapes from the Napa region, but not necessarily
from the Calistoga region. This commenter also supported use of a
``grandfathering'' approach.
Revised Regulatory Text Proposed
After careful consideration of the evidence submitted in support of
the petition and the comments received, TTB believes that there is a
substantial basis for the establishment of the viticultural area. The
petitioners submitted sufficient evidence of the viticultural
distinctiveness of the Calistoga area, and no evidence was provided to
contradict the petitioners' evidence. TTB also believes that
``Calistoga'' is the most appropriate name for the area. There is ample
evidence clearly showing that ``Calistoga'' is the name by which the
area is locally and regionally known and that the term ``Calistoga'' by
itself has been associated historically with viticulture, specifically
Napa Valley viticulture.
Consistent with previous practice, we considered alternative names
as a means to resolve conflicts between existing labels and the
establishment of a ``Calistoga'' proposed viticultural area.
Previously, for example, the ``Oak Knoll District of Napa Valley''
viticultural area (T.D. TTB-9, 69 FR 8562) and the ``Diamond Mountain
District'' viticultural area (T.D. ATF-456, 66 FR 29698) were
established after resolving such conflicts, resulting in AVA names that
were modifications of those originally proposed by the petitioners. The
petition to establish the ``Oak Knoll District of Napa Valley''
viticultural area originally proposed the name ``Oak Knoll District''.
The petition to establish the ``Diamond Mountain District''
viticultural area originally proposed the name ``Diamond Mountain'' for
the viticultural area. In these and similar cases, TTB found that name
evidence supported the use of the modified names, that the modified
names were associated with the proposed viticultural area boundaries,
and that their use reduced potential consumer confusion with long-
standing existing labels. In the two cases cited here, Oak Knoll
District of Napa Valley and Diamond Mountain District, the petitioners
also agreed to the modifications of the viticultural area names.
In the case at hand, the petitioners and commenters have not
suggested any modification to the proposed name that would resolve
conflicts between existing brand names and the establishment of a
``Calistoga'' viticultural area. Moreover, TTB did not find any
potential name modifications to be acceptable substitutes for the
proposed ``Calistoga'' viticultural area name. Because the term
``Calistoga'' alone is a specific, not generic, descriptive name that
is clearly associated with Napa Valley viticulture, regardless of
whether there may be adequate evidence to support a name modification
such as ``Calistoga District'', the term ``Calistoga'' alone has
viticultural significance, and therefore any viticultural area name
including the term ``Calistoga'' would be as problematic as the
proposed name.
TTB believes that the evidence submitted by the petitioners
indicates that designation of the Calistoga viticultural area would be
in conformity with applicable law and regulations. We do not find the
request by Calistoga Partners that TTB delay the approval of the
``Calistoga'' viticultural area ``until an industry-wide solution is
implemented to protect Calistoga Cellars'' to be an appropriate or
responsive resolution. The Calistoga case and cases with similar
factual bases involve a fundamental conflict between two otherwise
valid and appropriate TTB administrative actions, the approval of
labels by TTB through issuance of COLAs and the subsequent approval of
a petitioned-for AVA.
However, TTB also believes that Calistoga Partners has demonstrated
a legitimate interest in not losing the ability to continue to use its
long-held Calistoga Cellars brand name on its wines in the same way it
has been using this name. We believe it is desirable to find a solution
that will address the legitimate interests of both the Calistoga
petitioners, who have an interest in gaining formal recognition of a
viticulturally significant area and name, and vintners who have an
interest in retaining the use of long-held brand names. We also
believe, as a fundamental tenet of administrative practice, that it is
preferable to avoid, whenever possible, a situation in which one
otherwise proper administrative action (issuance of a certificate of
label approval in this case) is restricted by a subsequent, valid
administrative action (establishment of a viticultural area). And
perhaps most importantly, where a conflict arises between a proposed
AVA name and an established brand name, we do not believe that, in the
context of the labeling provisions of the FAA Act, it is an appropriate
government role to make choices between competing commercial interests,
if such choices can be avoided.
Accordingly, for the reasons stated above, we are proposing to add
in part 9 a new section covering the Calistoga viticultural area. The
new part 9 section text would differ from the section text proposed in
Notice No. 36 by the addition of a paragraph (d) to set forth a
``grandfather'' provision that allows continued use of brand names that
contain the term ``Calistoga'' even though the wine may not meet the
appellation of origin requirements of part 4 for the use of the
``Calistoga'' appellation of origin. Under this ``grandfather''
provision, a brand name containing the word ``Calistoga'' may only
appear on wine that does not meet the appellation of origin
requirements if: (1) The appropriate TTB officer finds that the brand
name has been in actual commercial use for a significant period of time
under one or more existing certificates of label approval that were
issued under part 4 of this chapter before March 31, 2005; and (2) the
wine is labeled with information that the appropriate TTB officer finds
to be sufficient to dispel the impression that the use of ``Calistoga''
in the brand name conforms to the appellation of origin requirements of
Sec. 4.25. In no case would the grandfather provision apply to a label
approved on or after March 31, 2005, the date that Notice No. 36 was
published in the Federal Register originally proposing the
establishment of the Calistoga viticultural area. The proposed rule is
intended to limit the adverse effect on established brands, and at the
same time dispel any misleading impression that might exist as to the
origin of the grapes used in those wines.
We note that this proposed paragraph (d) text would not extend to
the use of the name ``Calistoga Estate'' because that name was
submitted to TTB for label approval after the notice of proposed
rulemaking was made public
[[Page 65259]]
through publication in the Federal Register.
This proposal would not affect the application of the current
``grandfather'' provision in 27 CFR 4.39(i)(2) to any Calistoga brand
name used in an existing certificate of label approval issued prior to
July 7, 1986.
In this document we have also included a proposed amendment to 27
CFR 4.39(i)(1) to conform that text to the paragraph (d)
``grandfather'' provision in the proposed ``Calistoga'' AVA text in
part 9.
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. If we establish this proposed viticultural area, its
name, ``Calistoga,'' will be recognized under 27 CFR 4.39(i)(3) as a
name of viticultural significance. The text of the proposed regulation
clarifies this point. Consequently, wine bottlers using ``Calistoga''
in a brand name, including a trademark, or in another label reference
as to the origin of the wine, would have to ensure that the product
either is eligible to use the viticultural area's name as an
appellation of origin or meets the requirements for application of the
existing ``grandfather'' provision or the ``grandfather'' provision
proposed for the Calistoga AVA.
For a wine to be eligible to use as an appellation of origin a
viticultural area name or other term specified 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 to use the
viticultural area name or other term as an appellation of origin 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 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 that was used as a brand name on a label
approved before July 7, 1986. In addition to the amendment of Sec.
4.39(i)(1) contained in this document, see 27 CFR 4.39(i)(2) for
details.
Public Participation
Comments Invited
We specifically invite comments from interested members of the
public on the proposed ``grandfather'' provision protecting certain
brand names used on existing certificates of label approval that
contain the proposed ``Calistoga'' viticultural area name, provided
those labels also carry information that would dispel an impression
that the wine meets the requirements for using the viticultural area
name. In addition, we invite comment on the period of time of actual
commercial use that would be deemed ``significant'' under the rule, and
on alternatives to the proposed regulatory text.
We also solicit comments on what type of dispelling information is
sufficient to prevent consumers from being misled as to the origin of
the grapes used to produce such wines and comments on the appropriate
type size and location on the label for such information. Any other
comments related to the approaches in this proposed rule are invited.
Comments that provide the factual basis supporting the views or
suggestions presented will be particularly helpful in developing a
reasoned regulatory decision of this matter. However, comments
consisting of mere allegations or opinions are counterproductive to the
rulemaking process that is designed to build a factual evidentiary
record for the final rule.
Submitting Comments
You may submit comments on this notice by one of the following two
methods:
Federal e-Rulemaking Portal: To submit a comment on this
notice using the online Federal e-rulemaking portal, visit https://
www.regulations.gov and select ``Alcohol and Tobacco Tax and Trade
Bureau'' from the agency drop-down menu and click ``Submit.'' In the
resulting docket list, click the ``Add Comments'' icon for Docket No.
2007-0067 and complete the resulting comment form. You may attach
supplemental files to your comment. More complete information on using
Regulations.gov, including instructions for accessing open and closed
dockets and for submitting comments, is available through the site's
``User Tips'' link.
Mail: You may send written comments to the Director,
Regulations and Rulings Division, Alcohol and Tobacco Tax and Trade
Bureau, P.O. Box 14412, Washington, DC 20044-4412.
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.
If you are commenting on behalf of an association, business, or
other entity, your comment must include the entity's name as well as
your name and position title. If you comment via https://
www.regulations.gov, please enter the entity's name in the
``Organization'' blank of the comment form. If you comment via mail,
please submit your entity's comment on letterhead.
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 comments and attachments are part of the public
record and subject to disclosure. Do not enclose any material in your
comments that you consider to be confidential or inappropriate for
public disclosure.
Public Disclosure
You may view copies of this notice and any electronic or mailed
comments we receive about this proposal on the Federal e-rulemaking
portal at https://www.regulations.gov under Docket No. 2007-0067. You
also may view copies of the previous notice regarding this subject and
the comments received in response to it under the same docket number.
To view a posted document or comment, go to https://www.regulations.gov
and select ``Alcohol and Tobacco Tax and Trade Bureau'' from the agency
drop-down menu and click ``Submit.'' In the resulting docket list,
click the appropriate docket number, then click the ``View'' icon for
any document or comment posted under that docket number.
All submitted and posted comments will display the commenter's
name, organization (if any), city, and State, and, in the case of
mailed comments, all address information, including e-mail addresses.
We may omit voluminous attachments or material that we consider
unsuitable for posting.
You may also view copies of this notice, the previous notice, and
all electronic and mailed comments received in response to the two
notices, as well as all related petitions, maps,
[[Page 65260]]
and supporting materials, by appointment at the TTB Information
Resource Center, 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 or
other materials.
Regulatory Flexibility Act
We certify that this proposed rule will not have a significant
economic impact on a substantial number of small entities. This
proposed rule imposes no new reporting or recordkeeping 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 proposed rule is not a significant regulatory action as
defined by Executive Order 12866. Therefore, it requires no regulatory
assessment.
Drafting Information
Amy R. Greenberg and Michael D. Hoover of the Regulations and
Rulings Division drafted this document.
List of Subjects
27 CFR Part 4
Advertising, Customs duties and inspection, Imports, Labeling,
Packaging and containers, Reporting and recordkeeping requirements,
Trade practices, Wine.
27 CFR Part 9
Wine.
The Regulatory Amendment
For the reasons discussed in the preamble, we propose to amend 27
CFR, chapter I, parts 4 and 9, as follows:
PART 4--LABELING AND ADVERTISING OF WINE
1. The authority citation for part 4 continues to read as follows:
Authority: 27 U.S.C. 205, unless otherwise noted.
2. In Sec. 4.39, paragraph (i)(1) is amended by adding the words
``or in Sec. 9.209(d) of this chapter'' after ``subparagraph (2)''.
PART 9--AMERICAN VITICULTURAL AREAS
3. The authority citation for part 9 continues to read as follows:
Authority: 27 U.S.C. 205.
Subpart C--Approved American Viticultural Areas
4. Subpart C is amended by adding Sec. 9.209 to read as follows:
Sec. 9.209 Calistoga.
(a) Name. The name of the viticultural area described in this
section is ``Calistoga''. For purposes of part 4 of this chapter,
``Calistoga'' is a term of viticultural significance, but its use in a
brand name is also subject to paragraph (d) of this section.
(b) Approved maps. The appropriate maps used to determine the
boundary of the Calistoga viticultural area are four United States
Geological Survey 1:24,000 scale topographic quadrangle maps. They are
titled:
(1) Mark West Springs, Calif. (1993);
(2) Calistoga, CA (1997);
(3) St. Helena, Calif. (1960, revised 1993); and
(4) Detert Reservoir, CA (1997).
(c) Boundary. The Calistoga viticultural area is located in
northwestern Napa County, California. The boundary beginning point is
on the Mark West Springs map at the point where the Napa-Sonoma county
line intersects Petrified Forest Road in section 3, T8N/R7W. From this
point, the boundary:
(1) Continues northeasterly along Petrified Forest Road
approximately 1.9 miles to the road's intersection with the 400-foot
contour line near the north bank of Cyrus Creek approximately 1,000
feet southwest of the intersection of Petrified Forest Road and State
Route 128 on the Calistoga map;
(2) Proceeds generally east-southeast (after crossing Cyrus Creek)
along the 400-foot contour line to its intersection with Ritchey Creek
in section 16, T8N/R6W;
(3) Follows Ritchey Creek northeast approximately 0.3 miles to its
intersection with State Route 29 at the 347-foot benchmark;
(4) Proceeds east-southeast along State Route 29 approximately 0.3
miles to its intersection with a light-duty road labeled Bale Lane;
(5) Follows Bale Lane northeast approximately 0.7 miles to its
intersection with the Silverado Trail;
(6) Proceeds northwest along the Silverado Trail approximately
1,500 feet to its intersection with an unmarked driveway on the north
side of the Silverado Trail near the 275-foot benchmark;
(7) Continues northeasterly along the driveway for 300 feet to its
intersection with another driveway, and then continues north-northeast
in a straight line to the 400-foot contour line;
(8) Follows the 400-foot contour line easterly approximately 0.7
miles to its intersection with an unimproved dirt road (an extension of
a road known locally as the North Fork of Crystal Springs Road), which
lies in the Carne Humana Land Grant approximately 1,400 feet southwest
of the northwest corner of section 11, T8N/R6W on the St. Helena map;
(9) Continues northerly along the unimproved dirt road
approximately 2,700 feet to its intersection with the 880-foot contour
line in section 2, T8N/R6W;
(10) Follows the meandering 880-foot contour line northwesterly,
crossing onto the Calistoga map in section 2, T8N/R6W, and continues
along the 880-foot contour line through section 3, T8N/R6W, sections 34
and 35, T9N/R6W, (with a brief return to the St. Helena map in section
35), to the 880-contour line's intersection with Biter Creek in the
northeast quadrant of section 34, T9N/R6W;
(11) Continues westerly along the meandering 880-foot contour line
around Dutch Henry Canyon in section 28, T9N/R6W, and Simmons Canyon in
section 29, T9N/R6W, to the contour line's first intersection with the
R7W/R6W range line in section 30, T9N/R6W;
(12) Continues northerly along the meandering 880-foot contour line
across the two forks of Horns Creek and through Hoisting Works Canyon
in section 19, T9N/R6W, crossing between the Calistoga and Detert
Reservoir maps, to the contour line's intersection with Garnett Creek
in section 13, T9N/R7W, on the Detert Reservoir map;
(13) Continues westerly along the meandering 880-foot contour line,
crossing between the Calistoga and Detert Reservoir maps in sections 13
and 14, T9N/R7W, and in the region labeled ``Mallacomes or Moristul y
Plan de Agua Caliente,'' to the contour line's intersection with the
Napa-Sonoma county line approximately 1.1 miles northeast of State
Route 128 in the ``Mallacomes or Moristul y Plan de Agua Caliente''
region, T9N/R7W, of the Mark Springs West map; and
(14) Proceeds southerly along the Napa-Sonoma county line to the
beginning point.
(d) Brand names. A brand name containing the word ``Calistoga'' may
be used on a label only if:
(1) The wine meets the appellation of origin requirements of Sec.
4.25 of this chapter for the viticultural area established by this
section;
(2) The appropriate TTB officer finds that the brand name has been
in actual commercial use for a significant period of time under one or
more existing
[[Page 65261]]
certificates of label approval that were issued under part 4 of this
chapter before March 31, 2005, and the wine is labeled with information
that the appropriate TTB officer finds to be sufficient to dispel the
impression that the use of ``Calistoga'' in the brand name conforms to
the appellation of origin requirements of Sec. 4.25 of this chapter;
or
(3) The use of the brand name complies with Sec. 4.39(i)(2) of
this chapter.
Signed: November 7, 2007.
John J. Manfreda,
Administrator.
Approved: November 7, 2007.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and Tariff Policy).
[FR Doc. E7-22715 Filed 11-19-07; 8:45 am]
BILLING CODE 4810-31-P