Proposed Revision of American Viticultural Area Regulations (2006R-325P), 65261-65275 [E7-22717]
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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.
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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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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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businesses, can limit competition, and
can be used by petitioners to adversely
affect a competitor’s business. We note
in this regard that where a conflict
exists between a proposed AVA name
and an established brand name used on
a wine label approved by TTB, a choice
must be made between competing
commercial interests; we do not believe
that, in the context of the labeling
provisions of the FAA Act, it is an
appropriate governmental role to make
choices that undermine the commercial
interests of particular entities, if such
choices can be avoided.
In addition, we note that over the
years there has been an increase in the
number of petitions for the
establishment of new AVAs within
already existing AVAs. Because the idea
behind the recognition of an AVA is that
it is a unique area for viticultural
purposes with reference to what is
outside it, we believe that preserving the
integrity of the AVA program mandates
clarifying the standards for AVAs to
foster greater scrutiny on the
establishment of new AVAs within
existing AVAs.
Finally, there is a need to explain and
clarify the AVA petition submission and
review process and to clearly state the
existing authority to deny, and the
grounds for denying, an AVA
rulemaking petition.
AVA Name and Brand Name Conflict
The designation of a new AVA can
create a conflict with existing brand
names. This conflict can arise because a
brand name that includes an approved
AVA name may not be used unless at
least 85 percent of the wine is derived
from grapes grown within the
boundaries of the AVA. Moreover, TTB
prohibits the use of misleading brand
names (27 CFR 4.33), and also prohibits
brand names that tend to create the
impression that the wine is entitled to
bear a designation recognized by TTB
unless the wine meets the requirements
for that designation (27 CFR 4.39(a)(8)).
The establishment of a new AVA could
give rise to a misleading impression
regarding the provenance of a wine that
carries a known brand name similar to
the AVA name but that does not meet
the 85 percent requirement that applies
to AVA name usage, thereby not
providing the consumer with adequate
information as to the identity and
quality of the wine and creating
confusion for consumers and
jeopardizing the producer’s continued
use of the wine label in question.
The effect of the current regulatory
provisions is to give precedence to the
establishment of an AVA over the use of
a brand name on a previously approved
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label. If a wine is not eligible for
labeling with the viticultural area name
and that name appears in the brand
name, then the label would not be in
compliance and TTB would require the
bottler to obtain approval of a new label
with a new brand name. In effect,
vintners are on notice that continued
use of a brand name having
geographical significance could be
jeopardized by the subsequent
establishment of an AVA using an
identical or similar name. In practice,
however, TTB works with petitioners to
amend petitions in order to limit the
adverse impact on established brand
names.
For several reasons, we believe it is
important to dispel any misconceptions
that AVA petitions will be approved
without regard to their impact on
established brands. First, we do not
wish to discount the commercial and
informational value of an established
brand name, which often is built up
over a period of time by substantial
investments in capital and hard work.
Second, we do not wish to overlook the
possibility that, contrary to the purpose
of the FAA Act, the use of the new AVA
name on a label could be misleading to
those consumers who have associated
that name with wine bearing an
identical or similar brand name but
produced from grapes grown outside the
new AVA. Finally, we do not believe it
to be sound public policy to allow an
AVA petitioner to use a petition not for
purposes consistent with the FAA Act
but rather as a means to limit
competition from holders of established
brands.
AVAs Within AVAs
In recent years, TTB has received an
increasing number of petitions that
propose a boundary change to an
existing AVA, the establishment of an
AVA entirely or partially within an
existing AVA, or the establishment of a
new, larger AVA that would encompass
all of one or more existing AVAs. TTB
has come to recognize that such
petitions can create the appearance of a
conflict or inconsistency because, with
reference to the criteria set forth in
§ 9.3(b), the new petition might draw
into question the accuracy and validity
of the evidence presented in support of
the establishment of the existing AVA or
the legitimacy of the justification for
establishing the AVA. For example,
with reference to the boundary
description and the geographical
features criteria, a change in an existing
AVA boundary, or the adoption of a
new AVA within an existing AVA,
could suggest that the original boundary
was improperly drawn or that there is
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no unity or consistency in the features
of the existing AVA that give it a unique
and distinctive identity in a viticultural
sense.
When a new AVA was established
entirely within an existing AVA, TTB
traditionally took the position that a
wine that meets the 85 percent standard
for the new, smaller AVA would
automatically meet the 85 percent
standard for the larger AVA. However,
depending on the facts involved, we
recognize that this position could run
counter to the principle that an AVA is
unique with reference to what is outside
its boundary for viticultural purposes.
In other words, depending on the
unique facts presented in each AVA
petition, an argument could be made
that the smaller AVA is, by its very
existence, distinct from the AVA that
surrounds it, with the result that wine
produced within it could not be labeled
with the name of the larger AVA.
We believe that in order to preserve
the integrity of the AVA program, the
above considerations demonstrate a
need for greater clarity for, and closer
scrutiny of, petitions for the
establishment of new AVAs and for
changes to existing AVAs. The
petitioner should be expected to dispel
any apparent inconsistency or to
explain why it is acceptable.
Petition Submission and Review Process
Under TTB’s current AVA petition
process, we process all AVA petitions
that are submitted to us. TTB’s practice
is to work with the petitioner both
before and after submission of the
petition to ensure that it contains all
necessary information. TTB specialists
spend considerable time reviewing the
petition, contacting the petitioner, and
requesting missing evidence from the
petitioner. In some cases, deficient
petitions are returned to the petitioner
for revision and resubmission. Only
after the petition is perfected (that is, it
appears to contain all of the information
required under § 9.3) do we proceed
with preparation of an appropriate
rulemaking document. As a general rule,
the practice of TTB has been to accept
the information provided by the
petitioner in a perfected petition with
the assumption that the information
provided is true and correct. TTB does
not conduct a detailed, separate
investigation of the validity of the
petition evidence at that point. TTB
relies on comments provided in
response to the published notice of
proposed rulemaking (NPRM), to
confirm or refute the information
provided by the petitioner.
We also note that whereas the TTB
regulations in part 9 speak in terms of
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what an AVA petition must contain,
they do not clearly reflect the
fundamental administrative principle
that the authority to grant carries a
concomitant authority to deny an AVA
petition. We have come to realize that
some believe that all that is necessary to
successfully petition for the
establishment of an AVA is to submit a
petition with evidence under the terms
of § 9.3(b).
Our view, however, is that under the
current regulatory framework approval
of an AVA petition is totally
discretionary, because TTB already has
authority not to initiate rulemaking, or
not to approve the petitioned-for AVA
action after publication of a proposal,
for any one of a number of reasons, such
as:
• The evidence submitted with the
petition does not adequately support
use of the name proposed for a new
AVA;
• The evidence of distinguishing
features submitted with the petition
does not support drawing or redrawing
the AVA boundary as proposed;
• The extent of viticulture within the
proposed boundary is not sufficient to
constitute a grape-growing region within
the intendment of the AVA program; or
• Approval of a proposed new AVA
would be inconsistent with the purpose
of the FAA Act, contrary to another
statute or regulation, or otherwise not in
the public interest.
We believe, however, that the part 9
regulations should more completely
describe the submission and review
process, including the various actions
that TTB may take at each stage of the
AVA petitioning procedure.
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Overview of Proposed Changes
Based on the above considerations,
TTB believes that the present
regulations require further clarification
of the regulatory basis for the most
effective administration of the AVA
program. To help clarify this situation,
this document proposes to amend three
provisions within part 4 of the TTB
regulations that concern AVAs, to revise
subparts A and B of part 9 of the TTB
regulations, to amend various sections
within subpart C of part 9, and to amend
one provision within part 70 of the TTB
regulations.
Part 4 Amendments
At the beginning of the AVA program,
TTB’s predecessor agency and Treasury
issued 27 CFR 4.39(i), which permits
the continued use of brand names that
had been used in certificates of label
approval (COLAs) issued before July 7,
1986, subject to application of any one
of three conditions. The first two
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conditions refer to existing appellation
of origin labeling requirements, and the
third condition provides for labeling the
wine with some other statement that
TTB finds to be sufficient to dispel the
impression that the geographic area
suggested by the brand name is
indicative of the origin of the wine.
This ‘‘grandfather’’ approach was
intended to protect brand names that
had existed prior to the development of
the AVA program. This solution,
however, was not forward-looking and,
therefore, does not address conflicts
between AVAs and brand names in
COLAs that came into existence after
July 7, 1986. Since July 1986, more than
100 AVAs have been established in
response to petitions from industry
members and grape growers, reflecting
the increased interest in, and spread of,
viticulture throughout the United States.
In addition, in recent years an
increasing number of petitions have
been submitted that, if the AVA were to
be established with the petitioned-for
name, would affect established brand
names. As noted above, our intent in
administering the AVA program,
consistent with the intent behind the
original ‘‘grandfather’’ approach, is to
recognize established grape-growing
regions while avoiding interference with
established brand names.
While TTB will continue to work with
future AVA petitioners to limit the
adverse impact on established brand
names, we recognize that sometimes it
will not be possible to amend a petition
to achieve this result. In such cases, we
believe that application of a new
prospective ‘‘grandfather’’ approach
would achieve the most balanced result.
Accordingly, we are proposing to amend
§ 4.39(i) by adding a new
‘‘grandfathering’’ standard that would
apply in the case of AVAs established
after adoption of the final rule in this
matter and that would be based on a
specified number of years that a COLA
was issued, and whether the brand label
was in actual commercial use, before
receipt by TTB of a perfected AVA
petition. This approach would permit
the establishment of the AVA and at the
same time afford appropriate protection
of existing labels.
In addition, we propose to update two
provisions within § 4.25(e) and conform
them to the proposed changes to part 9,
as explained below.
Part 9 Amendments
The proposed changes to subparts A
and B of part 9 are intended to clarify
the operation of the AVA petition and
rulemaking process by explaining how a
petitioner must submit an AVA petition
to TTB, by setting forth with
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considerably greater specificity what
information a petition must contain, and
by explaining how TTB will process
these petitions. The amended
regulations would also clearly state that
TTB may, at its discretion, decide not to
proceed with rulemaking after receipt of
a petition but that TTB will provide an
explanation to the petitioner in such a
case.
Further, the proposed amendments to
subparts A and B of part 9 specifically
address the requirements for proposed
boundary and name changes to existing
AVAs, in order to ensure that an AVA
proposal published by TTB to change an
existing AVA (for example, a boundary
expansion) has adequate supporting
evidence. The specification of
requirements for boundary changes will
ensure that TTB receives petitions that
conform to AVA regulatory standards
rather than to considerations that are
not central to the AVA concept, such as
the desire to bring an individual
vineyard into an existing AVA.
We also propose to clarify in the
subpart A and B regulatory texts that
TTB has the discretion to decide
whether or not to proceed with
rulemaking with regard to any
submitted and perfected AVA petition,
provided the reasons are communicated
to the petitioner in writing. In addition,
the proposed amendments reflect the
authority of TTB to decide not to
proceed with approval of the petitionedfor AVA action after publication of the
NPRM. To these ends, the proposed
regulatory amendments attempt to make
a clear distinction between the petition
process and the rulemaking process,
because a decision not to go forward
may be made at either stage.
The proposed amendments in subpart
C are intended to draw the attention of
the reader to the viticultural
significance of names of previously
established AVAs, or notable portions of
those names, for wine labeling purposes
under part 4 of the TTB regulations.
These amendments are consistent with
the practice employed by TTB over the
past several years of including a second
sentence in paragraph (a) of each section
covering a new AVA, to specify what is
viticulturally significant as a result of
the establishment of the AVA. While in
most cases only the full name of the
AVA is specified in each of the subpart
C amendments contained in this
document, in some instances a portion
of the name is also identified as
viticulturally significant if, based on
TTB’s label approval practice, its use on
a label could be taken to represent the
full AVA name. While we have
attempted to avoid specifying a part of
an AVA name where such action might
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jeopardize the continued use of an
approved label, we specifically invite
comments on whether any existing
labels would be at risk if the proposed
amendments are adopted as a final rule.
Part 70 Amendment
Finally, we propose a conforming
amendment to § 70.701(c) of the TTB
regulations (27 CFR 70.701(c)), which
concerns petitions to change TTB’s
rules.
Additional points regarding the
proposed regulatory amendments are set
forth in the section-by-section
discussion below.
Section-by-Section Discussion of
Proposed Changes
Section 4.25
We are proposing to revise the
definition of viticultural area for
American wine contained in
§ 4.25(e)(1)(i) to conform it to the new
definition of ‘‘American viticultural
area’’ proposed for part 9. In addition,
we are proposing to revise § 4.25(e)(2) to
conform it to the restructuring of part 9
and to correct a wording error in the
present text.
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Section 4.39(i)
We are proposing to add a new
paragraph (3) to § 4.39(i) to set forth the
new grandfather provision, with a
consequential redesignation of present
paragraph (3) as (4). The new provision
would apply to AVAs and terms used in
AVA names established as viticulturally
significant under part 9 after the
effective date of the final rule on this
rulemaking action. As in the case of the
present paragraph (2) grandfather
provision, the new text would require
the use of dispelling information
regarding the origin of the wine.
The proposed new regulatory text
refers to brand names that were used in
COLAs issued prior to the 5-year period
immediately preceding receipt of the
perfected petition for establishment of
the new AVA and that were in actual
commercial use on labels for at least 3
years during that 5-year period as
demonstrated by the COLA holder. We
decided to propose two different
periods of time because COLA issuance
often precedes entry of a product into
the marketplace by a year or more. We
chose the 5-year period for COLA
issuance because we believe that this is
a reasonable period of time for the
establishment of an ongoing viticultural
enterprise, and we chose the 3-year
period for actual commercial use
because we believe that this is a
reasonable period of time for achieving
consumer recognition and loyalty.
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Under the proposed regulatory text, the
mere possession of a COLA for 5 years
or more would not be sufficient to
trigger the new ‘‘grandfather’’ clause—it
also would have to be established that
the product in fact had a presence in the
marketplace for at least 3 years during
the 5-year period. We would not
consider the mere placement of a label
on a wine bottle to be actual commercial
use because more would be required,
that is, actual entry into the
marketplace.
In addition to new paragraph (3), we
are proposing to amend § 4.39(i) by
revising paragraphs (1) and (2) to better
express the cross-references and to
simplify the text of paragraph (2) by
removing paragraph (2)(i), which
repeats a rule stated in paragraph (1)
and thus is redundant. These proposed
changes are purely editorial and do not
affect the substance of the texts.
Section 9.0
We are proposing to add a new § 9.0
before subpart A to define the scope of
the part 9 regulations. This new section
replaces, and slightly expands upon the
wording of, present § 9.1. We believe
that this scope section is more
appropriately placed before subpart A
since it is intended to operate more as
a reader’s aid than as a substantive
regulation.
Section 9.1
This proposed definitions section
would replace present § 9.11 and would
be the first section under subpart A. We
believe that it is better regulatory
practice to have a definitions section as
the first substantive section within a
part rather than following other sections
that use the terms defined in it. The text
is divided into paragraphs (a) and (b),
with paragraph (a) containing the
various definitions and paragraph (b)
containing the ‘‘use of other terms’’
recitation in the present text, which is
more substantive than definitional in
nature.
Within paragraph (a) of new § 9.1, we
propose to add new definitions covering
‘‘appropriate TTB officer,’’ ‘‘AVA,’’
‘‘perfected petition,’’ ‘‘person,’’
‘‘petition,’’ ‘‘petitioner,’’ ‘‘term of
viticultural significance,’’ and ‘‘TTB.’’ In
addition, we propose to combine the
present definitions for ‘‘American’’ and
‘‘viticultural area’’ into one definition of
‘‘American viticultural area.’’ Finally,
we propose a nonsubstantive wording
change to the definition of ‘‘approved
map.’’
Section 9.3
We are proposing to add a new § 9.3
to describe the delegations of the
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Administrator’s authorities for the
administration of part 9. This is
consistent with the practice under other
parts of the TTB regulations.
Section 9.11
This new section would be the first
section under subpart B, is intended to
cover in more detail the petition
submission process, and essentially
reflects current practice as described
above. It also clarifies both TTB’s
authority to decide whether to take
action in response to a petition and the
fact that mere receipt of a petition does
not compel the publication of a
rulemaking document in the Federal
Register.
Section 9.12
This new section sets forth
significantly elaborated AVA petition
content standards to address a number
of the concerns outlined earlier in this
document. The proposed text
distinguishes between petitions for the
establishment of a new AVA and
petitions for changes to an existing
AVA. It also sets forth specific
additional standards for petitions
proposing the establishment of a new
AVA entirely within, or overlapping, an
existing AVA, or proposing the
establishment of a new, larger AVA
encompassing all of one or more
existing AVAs. In the case of an AVA
entirely within another AVA, the text
states that in some cases TTB may
determine that the smaller AVA will not
be considered to be part of the larger
AVA because of its particular
distinctiveness; such a determination
would be made only in connection with
rulemaking involving a new AVA and
therefore would only be applied
prospectively. In addition, in the case of
changes to existing AVAs, the text
distinguishes between boundary
changes and name changes. TTB
believes that these distinctions are
necessary to maintain the integrity of
the AVA program, because different
evidence or other information may be
necessary to support a petition
depending on the specific petitioned-for
action.
Section 9.13
This new section covers the initial
processing of an AVA petition after
receipt by TTB, and it largely reflects
TTB’s present practice. The proposed
text clarifies that the mere receipt of a
perfected petition does not necessarily
mean that TTB will proceed with
rulemaking, and that the reasons for not
proceeding with rulemaking will be set
forth in writing to the petitioner. Thus,
it is the intent of TTB to maintain a
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clear distinction between the processing
of a petition and the initiation of
rulemaking, which is the subject of the
next section. If TTB decides to proceed
with rulemaking, the new section also
provides that TTB will advise the
petitioner of the date of receipt of the
perfected petition and will place a
notice on the TTB Web site that the
petition has been accepted for
rulemaking.
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Section 9.14
This new section covers the
rulemaking process, which commences
only after a decision is made under
§ 9.13 to proceed to rulemaking
(preparation and publication of the
NPRM). It includes a description of
various final actions that TTB might
take after the close of the public
comment period and review of the
comments submitted and any other
relevant information that comes to the
attention of TTB that might have a
bearing on the action taken by TTB.
Among the proposed final actions that
TTB might take is publication of a
notice withdrawing the proposal to
establish the AVA. In addition to a
failure of a petition to identify an actual
grape-growing region or to provide
adequate name, boundary, and
distinguishing features evidence, a
proposed basis for such a withdrawal
could be that adoption of the proposal
would be inconsistent with a purpose of
the FAA Act or any other Federal statute
or regulation or would be otherwise
contrary to the public interest. TTB
believes that the latter grounds for
withdrawing a proposal are appropriate
based on the principle that
administrative practice should always
be consistent with, and never contrary
to, law and public policy. As in the case
of a withdrawal based on insufficient
petition evidence, the Federal Register
document announcing the withdrawal
would explain the specific
considerations upon which the
withdrawal is based.
Subpart C
The proposed amendments within
subpart C (in paragraphs 6 through 166)
are consistent with the practice
employed by TTB, which is to include
a sentence in paragraph (a) to specify
what is viticulturally significant as a
result of the establishment of the AVA.
The specification of a portion of an AVA
name is based on TTB’s label approvals
as reflected in the TTB Public COLA
Registry.
Section 70.701(c)
The amendment to § 70.701(c)
involves the addition of a reference to
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part 9 regarding a petition to establish
a grape-growing region as a new AVA or
to modify an existing AVA.
Public Participation
Comments Invited
We invite comments from interested
members of the public on this proposed
rulemaking, including the proposed
regulatory text.
In addition, we invite comment on the
following specific questions:
1. Whether additional or different
standards should apply to the
establishment of an AVA; for example,
whether there should be a requirement
that a specified percentage of the land
mass of the proposed AVA be involved
in viticultural activities.
2. Whether in some or all cases the
establishment of a smaller AVA located
within the boundaries of a larger AVA
should result in a prohibition against
the use of the larger AVA name on wine
labels.
3. Whether the use of a ‘‘grandfather’’
provision to avoid conflicts between an
established brand name and the
establishment of a proposed AVA is
appropriate.
4. Whether the terms of the proposed
‘‘grandfather’’ provision are appropriate
and, if so, what time periods should
apply to establish commercial use of the
brand name involved in a conflict.
5. Whether it would be more
appropriate to adopt an alternative to
the ‘‘grandfather’’ provision proposed
that would apply to brand names that
have longstanding commercial use
under one or more existing certificates
of label approval without specifying a
time period.
6. What type of dispelling information
would prevent consumers from being
misled as to the origin of the wine when
a ‘‘grandfather’’ provision applies. Other
comments for a requirement on
dispelling information are encouraged.
Submitting Comments
You may submit comments on this
notice by one of the following 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–
0068 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
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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.
• Hand Delivery/Courier in lieu of
mail: Alcohol and Tobacco Tax and
Trade Bureau, 1310 G Street, NW., Suite
200–E, Washington, DC 20005.
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
On the Federal e-rulemaking portal,
we will post, and you may view, copies
of this notice and any electronic,
mailed, or hand-delivered comments we
receive about this proposal. 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 or handdelivered comments, all address
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information, including e-mail addresses.
We may omit voluminous attachments
or material that we consider unsuitable
for posting.
You also may view copies of this
notice and any electronic, mailed, or
hand-delivered comments we receive
about this proposal 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 × 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 Analysis and Notices
Executive Order 12866
This proposed rule is not a significant
regulatory action as defined by
Executive Order 12866. This proposed
rule merely clarifies existing regulatory
standards and imposes no new
reporting, recordkeeping, or other
administrative requirements. Therefore,
it requires no regulatory assessment.
Regulatory Flexibility Act
We certify that these proposed
regulations, if adopted, would not have
a significant economic impact on a
substantial number of small entities. As
the submittal of a petition to TTB to
establish a new AVA or change an
existing AVA is voluntary, we believe
that the proposed regulation imposes no
new reporting, recordkeeping, or other
administrative requirement. Therefore,
no regulatory flexibility analysis is
required.
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Paperwork Reduction Act
The collection of information
contained in this notice of proposed
rulemaking has been submitted to the
Office of Management and Budget
(OMB) for review in accordance with
the Paperwork Reduction Act of 1995
(44 U.S.C. 3507(d)). Comments on the
collection of information should be sent
to OMB at
Alexander_T._Hunt@omb.eop.gov, or by
paper mail to Office of Management and
Budget, Attention: Desk Officer for the
Department of the Treasury, Office of
Information and Regulatory Affairs,
Washington, DC 20503. A copy should
also be sent to the Alcohol and Tobacco
Tax and Trade Bureau by any of the
methods previously described. Because
OMB must complete its review of the
collection of information between 30
and 60 days after publication, comments
on the information collection should be
submitted not later than December 20,
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2007. Comments are specifically
requested concerning:
• Whether the proposed collection of
information is necessary for the proper
performance of the functions of the
Alcohol and Tobacco Tax and Trade
Bureau, including whether the
information will have practical utility;
• The accuracy of the estimated
burden associated with the proposed
collection of information (see below);
• How to enhance the quality, utility,
and clarity of the information to be
collected;
• How to minimize the burden of
complying with the proposed collection
of information, including the
application of automated collection
techniques or other forms of information
technology; and
• Estimates of capital or start-up costs
and costs of operation, maintenance,
and purchase of services to provide
information.
The collection of information in this
proposed regulation is in 27 CFR 9.11
and 9.12. This information is required to
petition TTB to establish a new AVA or
to change an existing AVA. This
information will be used to verify
evidence sources and to determine
whether the information is sufficient to
begin the rulemaking process (that is,
proceed to a notice of proposed
rulemaking). The collection of
information is required to obtain a
benefit. The likely respondents are nonprofit institutions and small businesses
or organizations.
• Estimated total annual reporting
and/or recordkeeping burden: 2,398
hours.
• Estimated average annual burden
hours per respondent: 218 hours.
• Estimated number of respondents:
11 per year.
• Estimated annual frequency of
responses: 1.
An agency may not conduct or
sponsor, and a person is not required to
respond to, a collection of information
unless it displays a valid control
number assigned by OMB.
Rita D. Butler 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, and Wine.
27 CFR Part 9
Wine.
Frm 00040
Fmt 4702
Administrative practice and
procedure, Claims, Excise taxes,
Freedom of information, Law
enforcement, Penalties, Reporting and
recordkeeping requirements, and Surety
bonds.
Proposed Amendments to the
Regulations
For the reasons discussed in the
preamble, TTB proposes to amend 27
CFR, chapter I, parts 4, 9, and 70, 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 § 4.25, paragraphs (e)(1)(i) and
(e)(2) are revised to read as follows:
§ 4.25
Appellations of origin.
*
*
*
*
*
(e) Viticultural area—(1) Definition—
(i) American wine. A delimited grape
growing region having distinguishing
features as described in part 9 of this
chapter and a name and a delineated
boundary as established in part 9 of this
chapter.
*
*
*
*
*
(2) Establishment of American
viticultural areas. A petition for the
establishment of an American
viticultural area may be made to the
Administrator by any interested party,
pursuant to part 9 and § 70.701(c) of this
chapter. The petition must be made in
written form and must contain the
information specified in § 9.12 of this
chapter.
*
*
*
*
*
3. In § 4.39, paragraphs (i)(1) and (i)(2)
are revised, paragraph (i)(3) is
redesignated as paragraph (i)(4), and a
new paragraph (i)(3) is added, to read as
follows:
§ 4.39
Prohibited practices.
*
Drafting Information
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Sfmt 4702
*
*
*
*
(i) Geographic brand names. (1)
Except as provided in paragraph (i)(2) or
(3) of this section, a brand name of
viticultural significance may not be
used unless the wine meets the
appellation of origin requirements for
the geographic area named.
(2) For brand names used in existing
certificates of label approval issued
prior to July 7, 1986:
(i) The wine shall be labeled with an
appellation of origin in accordance with
§ 4.34(b) of this chapter as to location
and size of type of either:
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(A) A county or a viticultural area, if
the brand name bears the name of a
geographic area smaller than a state; or
(B) A state, county or a viticultural
area, if the brand name bears a state
name; or
(ii) The wine shall be labeled with
some other statement which the
appropriate TTB officer finds to be
sufficient to dispel the impression that
the geographic area suggested by the
brand name is indicative of the origin of
the wine.
(3) Brand names that do not meet the
requirements of paragraph (i)(2) of this
section and that contain the name of a
viticultural area or other term of
viticultural significance established
under part 9 of this chapter on or after
[INSERT EFFECTIVE DATE OF FINAL
RULE] may be used in conjunction with
information which the appropriate TTB
officer finds to be sufficient to dispel the
impression that the geographic area
suggested by the brand name is
indicative of the origin of the wine,
provided that the brand name:
(i) Was used in an existing certificate
of label approval issued prior to the 5year period immediately preceding
receipt of the perfected petition for
establishment of the viticultural area;
and
(ii) Was in actual commercial use on
labels for at least 3 years during that 5year period.
*
*
*
*
*
PART 9—AMERICAN VITICULTURAL
AREAS
4. The authority citation for part 9
continues to read as follows:
Authority: 27 U.S.C. 205.
5. A new § 9.0 is added before Subpart
A to read as follows:
§ 9.0
Scope.
§ 9.2
The regulations in this part relate to
American viticultural areas created
under the authority of the Federal
Alcohol Administration Act and
referred to in § 4.25(e) of this chapter.
6. Subparts A and B are revised to
read as follows:
§ 9.3
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Definitions.
(a) General. For purposes of this part,
and unless the specific context
otherwise requires, the following terms
shall have the meanings indicated:
Administrator. The Administrator,
Alcohol and Tobacco Tax and Trade
Bureau, Department of the Treasury,
Washington, DC.
American viticultural area. A
viticultural area as defined in
§ 4.25(e)(1)(i) of this chapter.
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Territorial extent.
This part applies to the several States
of the United States, the District of
Columbia, and Puerto Rico.
Subpart A—General Provisions
§ 9.1
Appropriate TTB officer. An officer or
employee of the Alcohol and Tobacco
Tax and Trade Bureau authorized to
perform any functions relating to the
administration or enforcement of this
part by TTB Order 1135.9, Delegation of
the Administrator’s Authorities in 27
CFR Part 9, American Viticultural
Areas.
Approved map. The U.S.G.S. map(s)
used to define the boundary of an
approved AVA.
AVA. An American viticultural area.
Perfected petition. A petition
containing all of the evidence meeting
the requirements of § 9.12 and
containing sufficient supporting
information for TTB to decide whether
or not to proceed with rulemaking to
establish a new AVA or to change an
existing AVA.
Person. An individual, partnership,
association, corporation, or other entity.
Petition. A written request to establish
a new AVA or to change an existing
AVA, signed by the petitioner or an
authorized agent of the petitioner, and
submitted in accordance with this part
and § 70.701(c) of this chapter.
Petitioner. An individual or entity
that submits a petition to TTB.
Term of viticultural significance. A
term recognized under § 4.39(i)(3) of
this chapter.
TTB. The Alcohol and Tobacco Tax
and Trade Bureau, Department of the
Treasury, Washington, DC.
U.S.G.S. The United States Geological
Survey.
(b) Use of other terms. Any other term
defined in the Federal Alcohol
Administration Act and used in this
part shall have the same meaning
assigned to it by that Act.
Delegations of the Administrator.
Most of the regulatory authorities of
the Administrator contained in this part
are delegated to appropriate TTB
officers. Those TTB officers are
specified in TTB Order 1135.9,
Delegation of the Administrator’s
Authorities in 27 CFR Part 9, American
Viticultural Areas. You may obtain a
copy of this order by accessing the TTB
Web site (https://www.ttb.gov) or by
mailing a request to the Alcohol and
Tobacco Tax and Trade Bureau,
National Revenue Center, 550 Main
Street, Room 1516, Cincinnati, OH
45202.
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Subpart B—AVA Petitions
§ 9.11
Submission of AVA petitions.
(a) Procedure for petitioner. Any
person may submit an AVA petition to
TTB to establish a grape-growing region
as a new AVA, to change the boundary
of an existing AVA, or to change the
name of an existing AVA. The petitioner
is responsible for including with the
petition all of the information specified
in § 9.12. The person submitting the
petition is also responsible for providing
timely and complete responses to TTB
requests for additional information to
support the petition.
(b) How and where to submit an AVA
petition. The AVA petition may be sent
to TTB using the U.S. Postal Service or
a private delivery service. A petition
sent through the U.S. Postal Service
should be addressed to: Regulations and
Rulings Division, Alcohol and Tobacco
Tax and Trade Bureau, 1310 G Street,
NW., Washington, DC 20220. A petition
sent via a private delivery service
should be directed to: Regulations and
Rulings Division, Alcohol and Tobacco
Tax and Trade Bureau, Suite 200E, 1310
G Street, NW., Washington, DC 20005.
(c) Purpose and effect of submission
of AVA petitions. The submission of a
petition under this subpart is intended
to provide TTB with sufficient
documentation to propose the
establishment of a new AVA or to
propose changing the name or boundary
of an existing AVA. After considering
the petition evidence and any other
relevant information, TTB shall decide
what action to take in response to a
petition and shall so advise the
petitioner. Nothing in this chapter shall,
or shall be interpreted to, compel any
Department of the Treasury official to
proceed to rulemaking in response to a
submitted petition.
§ 9.12
AVA petition requirements.
(a) Establishment of an AVA in
general. A petition for the establishment
of a new AVA must include all of the
evidentiary materials and other
information specified in this section.
The petition must stand on its own and
require no independent verification or
research by TTB.
(1) Name evidence. The name
identified for the proposed AVA must
be currently and directly associated
with an area in which viticulture exists.
All of the area within the proposed AVA
boundary must be nationally or locally
known by the name specified in the
petition, although the use of that name
may extend beyond the proposed AVA
boundary. The name evidence must
conform to the following rules:
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(i) Name usage. The petition must
completely explain, in narrative form,
the manner in which the name is used
for the area covered by the proposed
AVA.
(ii) Source of name and name
evidence. The name and the evidence in
support of it must come from sources
independent of the petitioner.
Appropriate name evidence sources
include, but are not limited to, historical
and modern government or commercial
maps, books, newspapers, magazines,
tourist and other promotional materials,
local business or school names, and
road names. Whenever practicable, the
petitioner must include with the
petition copies of the name evidence
materials, appropriately crossreferenced in the petition narrative.
Although anecdotal information by
itself is not sufficient, statements taken
from local residents with knowledge of
the name and its use may also be
included to support other name
evidence.
(2) Boundary evidence. The petition
must explain in detail the basis for
defining the boundary of the proposed
AVA as set forth in the petition. This
explanation must have reference to the
name evidence and other distinguishing
features information required under this
section. In support of the proposed
boundary, the petition must outline the
commonalities or similarities within
that boundary and must explain with
specificity how those elements are
different in the adjacent areas outside
that boundary.
(3) Distinguishing features. The
petition must provide, in narrative form,
a description of the common or similar
features of the proposed AVA affecting
viticulture that make it distinctive. The
petition must also explain with
specificity in what way these features
affect viticulture and how they are
distinguished viticulturally from
features associated with adjacent areas
outside the proposed AVA boundary.
For purposes of this section,
information relating to distinguishing
features affecting viticulture includes
the following:
(i) Climate. Temperature,
precipitation, wind, fog, solar
orientation and radiation, and other
climate information;
(ii) Geology. Underlying formations,
landforms, and such geophysical events
as earthquakes, eruptions, and major
floods;
(iii) Soils. Soil series or phases of a
soil series, denoting parent material,
texture, slope, permeability, soil
reaction, drainage, and fertility;
(iv) Physical features. Flat, hilly, or
mountainous topography, geographical
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formations, bodies of water, watersheds,
irrigation resources, and other physical
features; and
(v) Elevation. Minimum and
maximum elevations.
(4) Maps and boundary description—
(i) Maps. The petitioner must submit
with the petition, in an appropriate
scale, the U.S.G.S. map(s) showing the
location of the proposed AVA. The
exact boundary of the AVA must be
prominently and clearly drawn on the
maps without obscuring the underlying
features that define the boundary line.
U.S.G.S. maps may be obtained from the
U.S. Geological Survey, Branch of
Distribution. If the map name is not
known, the petitioner may request a
map index by State.
(ii) Boundary description. The
petition must include a detailed
narrative description of the proposed
AVA boundary based on U.S.G.S. map
markings. This description must have a
specific beginning point, must proceed
unbroken from that point in a clockwise
direction, and must return to that
beginning point to complete the
boundary description. The boundary
description must refer to easily
discernable reference points on the
U.S.G.S. maps. The proposed AVA
boundary description may rely on any
of the following map features:
(A) State, county, township, forest,
and other political entity lines;
(B) Highways, roads (including
unimproved roads), and trails;
(C) Contour or elevation lines;
(D) Natural geographical features,
including rivers, streams, creeks, ridges,
and markedelevation points (such as
summits or benchmarks);
(E) Human-made features (such as
bridges, buildings, windmills, or water
tanks); and
(F) Straight lines between marked
intersections, human-made features, or
other map points.
(b) AVAs within AVAs. If the petition
proposes the establishment of a new
AVA entirely within, or overlapping, an
existing AVA, the evidence submitted
under paragraph (a) of this section must
include information that both identifies
the attributes of the proposed AVA that
are consistent with the existing AVA
and explains how the proposed AVA is
sufficiently distinct from the existing
AVA and therefore appropriate for
separate recognition. If the petition
proposes the establishment of a new
AVA that is larger than, and
encompasses, all of one or more existing
AVAs, the evidence submitted under
paragraph (a) of this section must
include information addressing
whether, and to what extent, the
attributes of the proposed AVA are
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consistent with those of the existing
AVA(s). In any case in which an AVA
would be created entirely within
another AVA, whether by the
establishment of a new, larger AVA or
by the establishment of a new AVA
within an existing one, the petition
must dispel any apparent inconsistency
or explain why it is acceptable. When a
smaller AVA has name recognition and
features that so clearly distinguish it
from a larger AVA that surrounds it,
TTB may determine in the course of the
rulemaking that it is not part of the
larger AVA and that wine produced
from grapes grown within the smaller
AVA would not be entitled to use the
name of the larger AVA as an
appellation of origin or in a brand name.
(c) Modification of an existing AVA—
(1) Boundary change. If a petition seeks
to change the boundary of an existing
AVA, the petitioner must include with
the petition all relevant evidence and
other information specified for a new
AVA petition in paragraphs (a) and (b)
of this section. This evidence or
information must include, at a
minimum, the following:
(i) Name evidence. If the proposed
change involves an expansion of the
existing boundary, the petition must
show how the name of the existing AVA
also applies to the expansion area. If the
proposed change would result in a
decrease in the size of an existing AVA,
the petition must explain the extent to
which the AVA name does not apply to
the excluded area.
(ii) Distinguishing features. The
petition must demonstrate that the area
covered by the proposed change has, or
does not have, distinguishing features
affecting viticulture that are essentially
the same as those of the existing AVA.
If the proposed change involves an
expansion of the existing AVA, the
petition must demonstrate that the area
covered by the expansion has the same
distinguishing features as those of the
existing AVA and has different features
from those of the area outside the
proposed, new boundary. If the
proposed change would result in a
decrease in the size of an existing AVA,
the petition must explain how the
distinguishing features of the excluded
area are different from those within the
boundary of the smaller AVA. In all
cases the distinguishing features must
affect viticulture.
(iii) Boundary evidence and
description. The petition must explain
how the boundary of the existing AVA
was incorrectly or incompletely defined
or is no longer accurate due to new
evidence or changed circumstances,
with reference to the name evidence and
distinguishing features of the existing
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AVA and of the area affected by the
proposed boundary change. The petition
must include the appropriate U.S.G.S.
maps with the proposed boundary
change drawn on them and must
provide a detailed narrative description
of the changed boundary.
(2) Name change. If a petition seeks
to change the name of an existing AVA,
the petition must establish the
suitability of that name change by
providing the name evidence specified
in paragraph (a)(1) of this section.
§ 9.13
Initial processing of AVA petitions.
(a) TTB notification to petitioner of
petition receipt. The appropriate TTB
officer will acknowledge receipt of a
submitted petition. This notification
will be in a letter sent to the petitioner
within 30 days of receipt of the petition.
(b) Acceptance of a perfected petition
or return of a deficient petition to the
petitioner. The appropriate TTB officer
will perform an initial review of the
petition to determine whether it is a
perfected petition. If the petition is not
perfected, the appropriate TTB officer
will return it to the petitioner without
prejudice to resubmission in perfected
form. If the petition is perfected, TTB
will decide whether to proceed with
rulemaking under § 9.14 and will advise
the petitioner in writing of that
decision. If TTB decides to proceed with
rulemaking, TTB will advise the
petitioner of the date of receipt of the
perfected petition. If TTB decides not to
proceed with rulemaking, TTB will
advise the petitioner of the reasons for
that decision.
(c) Notice of pending petition. When
a perfected petition is accepted for
rulemaking, TTB will place a notice to
that effect on the TTB Web site.
rmajette on PROD1PC64 with PROPOSALS
§ 9.14
AVA rulemaking process.
(a) Notice of proposed rulemaking. If
TTB determines that rulemaking in
response to a petition is appropriate,
TTB will prepare and publish a notice
of proposed rulemaking (NPRM) in the
Federal Register to solicit public
comments on the petitioned-for AVA
action.
(b) Final action. Following the close
of the NPRM comment period, TTB will
review any submitted comments and
any other available relevant information
and will take one of the following
actions:
(1) Prepare a final rule for publication
in the Federal Register adopting the
proposed AVA action, with or without
changes;
(2) Prepare a notice for publication in
the Federal Register withdrawing the
proposal and setting forth the reasons
for the withdrawal. Reasons for
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withdrawal of a proposal must include
at least one of the following:
(i) The extent of viticulture within the
proposed boundary is not sufficient to
constitute a grape-growing region as
specified in § 9.11(a); or
(ii) The name, boundary, or
distinguishing features evidence does
not meet the standards for such
evidence set forth in § 9.12; or
(iii) The petitioned-for action would
be inconsistent with one of the purposes
of the Federal Alcohol Administration
Act or any other Federal statute or
regulation or would be otherwise
contrary to the public interest;
(3) Prepare a new NPRM for
publication in the Federal Register
setting forth a modified AVA action for
public comment; or
(4) Take any other action deemed
appropriate by TTB.
65269
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘Santa
Maria Valley’ is a term of viticultural
significance.’’
§ 9.29
[Amended]
14. Section 9.29 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Sonoma’ and ‘Sonoma Valley’ are terms
of viticultural significance.’’
§ 9.30
[Amended]
15. Section 9.30 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘North
Coast’ is a term of viticultural
significance.’’
§ 9.31
[Amended]
7. Section 9.22 is amended by adding
a sentence at the end of paragraph (a) to
read as follows: ‘‘For purposes of part 4
of this chapter, ‘Augusta’ is a term of
viticultural significance.’’
16. Section 9.31 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘Santa
Cruz’ and ‘Santa Cruz Mountains’ are
terms of viticultural significance.’’
§ 9.23
§ 9.32
§ 9.22
[Amended]
[Amended]
8. Section 9.23 is amended by adding
a sentence at the end of paragraph (a) to
read as follows: ‘‘For purposes of part 4
of this chapter, ‘Napa’ and ‘Napa Valley’
are terms of viticultural significance.’’
§ 9.24
[Amended]
9. Section 9.24 is amended by adding
a sentence at the end of paragraph (a) to
read as follows: ‘‘For purposes of part 4
of this chapter, ‘Chalone’ is a term of
viticultural significance.’’
§ 9.25
[Amended]
10. Section 9.25 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘San
Pasqual’ and ‘San Pasqual Valley’ are
terms of viticultural significance.’’
§ 9.26
[Amended]
11. Section 9.26 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Guenoc’ and ‘Guenoc Valley’ are terms
of viticultural significance.’’
§ 9.27
[Amended]
12. Section 9.27 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘Lime
Kiln Valley’ is a term of viticultural
significance.’’
§ 9.28
[Amended]
13. Section 9.28 is amended by
adding a sentence at the end of
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[Amended]
17. Section 9.32 is amended by
revising the sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Carneros’ and ‘Los Carneros’ are terms
of viticultural significance.’’
§ 9.33
[Amended]
18. Section 9.33 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Fennville’ is a term of viticultural
significance.’’
§ 9.34
[Amended]
19. Section 9.34 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Finger Lakes’ is a term of viticultural
significance.’’
§ 9.35
[Amended]
20. Section 9.35 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘Edna
Valley’ is a term of viticultural
significance.’’
§ 9.36
[Amended]
21. Section 9.36 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘McDowell Valley’ is a term of
viticultural significance.’’
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§ 9.37
Federal Register / Vol. 72, No. 223 / Tuesday, November 20, 2007 / Proposed Rules
[Amended]
22. Section 9.37 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Shenandoah’, ‘Shenandoah Valley’, and
‘California Shenandoah Valley’ are
terms of viticultural significance.’’
§ 9.38
[Amended]
23. Section 9.38 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Cienega’ and ‘Cienega Valley’ are terms
of viticultural significance.’’
§ 9.39
[Amended]
24. Section 9.39 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Paicines’ is a term of viticultural
significance.’’
§ 9.40
[Amended]
[Amended]
26. Section 9.41 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Lancaster Valley’ is a term of
viticultural significance.’’
§ 9.42
[Amended]
[Amended]
28. Section 9.43 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Rocky Knob’ is a term of viticultural
significance.’’
rmajette on PROD1PC64 with PROPOSALS
§ 9.44
29. Section 9.44 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Solano County Green Valley’ is a term
of viticultural significance.’’
§ 9.45
[Amended]
30. Section 9.45 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
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§ 9.47
[Amended]
32. Section 9.47 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Hudson River’ and ‘Hudson River
Region’ are terms of viticultural
significance.’’
[Amended]
33. Section 9.48 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Monticello’ is a term of viticultural
significance.’’
§ 9.49
[Amended]
34. Section 9.49 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Delaware Valley’ and ‘Central Delaware
Valley’ are terms of viticultural
significance.’’
[Amended]
35. Section 9.50 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Temecula’ and ‘Temecula Valley’ are
terms of viticultural significance.’’
§ 9.51
[Amended]
36. Section 9.51 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘Isle
St. George’ is a term of viticultural
significance.’’
§ 9.52
[Amended]
[Amended]
31. Section 9.46 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Livermore Valley’ is a term of
viticultural significance.’’
§ 9.50
27. Section 9.42 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘Cole
Ranch’ is a term of viticultural
significance.’’
§ 9.43
§ 9.46
§ 9.48
25. Section 9.40 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Leelanau’ and ‘Leelanau Peninsula’ are
terms of viticultural significance.’’
§ 9.41
‘Suisun Valley’ is a term of viticultural
significance.’’
[Amended]
37. Section 9.52 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘Chalk
Hill’ is a term of viticultural
significance.’’
§ 9.53
[Amended]
38. Section 9.53 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Alexander Valley’ is a term of
viticultural significance.’’
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§ 9.54
[Amended]
39. Section 9.54 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘Santa
Ynez’ and ‘Santa Ynez Valley’ are terms
of viticultural significance.’’
§ 9.55
[Amended]
40. Section 9.55 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘Bell
Mountain’ is a term of viticultural
significance.’’
§ 9.56
[Amended]
41. Section 9.56 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘San
Lucas’ is a term of viticultural
significance.’’
§ 9.57
[Amended]
42. Section 9.57 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Sonoma’, ‘Sonoma County’, and
‘Sonoma County Green Valley’ are terms
of viticultural significance.’’
§ 9.58
[Amended]
43. Section 9.58 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Carmel Valley’ is a term of viticultural
significance.’’
§ 9.59
[Amended]
44. Section 9.59 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Arroyo Seco’ is a term of viticultural
significance.’’
§ 9.60
[Amended]
45. Section 9.60 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Shenandoah’ and ‘Shenandoah Valley’
are terms of viticultural significance.’’
§ 9.61
[Amended]
46. Section 9.61 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘El
Dorado’ is a term of viticultural
significance.’’
§ 9.62
[Amended]
47. Section 9.62 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
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‘Loramie Creek’ is a term of viticultural
significance.’’
§ 9.63
[Amended]
48. Section 9.63 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Linganore’ is a term of viticultural
significance.’’
§ 9.64
§ 9.72
[Amended]
49. Section 9.64 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘Dry
Creek’ and ‘Dry Creek Valley’ are terms
of viticultural significance.’’
§ 9.65
[Amended]
50. Section 9.65 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘North
Fork of Roanoke’ is a term of viticultural
significance.’’
§ 9.66
[Amended]
51. Section 9.66 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Russian River’ and ‘Russian River
Valley’ are terms of viticultural
significance.’’
§ 9.67
[Amended]
[Amended]
[Amended]
rmajette on PROD1PC64 with PROPOSALS
[Amended]
55. Section 9.70 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Sonoma’ and ‘Northern Sonoma’ are
terms of viticultural significance.’’
§ 9.71
[Amended]
56. Section 9.71 is amended by
adding a sentence at the end of
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Jkt 214001
[Amended]
58. Section 9.73 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Martha’s Vineyard’ is a term of
viticultural significance.’’
§ 9.74
[Amended]
59. Section 9.74 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Columbia Valley’ is a term of
viticultural significance.’’
§ 9.76
54. Section 9.69 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Yakima’ and ‘Yakima Valley’ are terms
of viticultural significance.’’
§ 9.70
§ 9.73
[Amended]
60. Section 9.75 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Central Coast’ is a term of viticultural
significance.’’
53. Section 9.68 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Merritt Island’ is a term of viticultural
significance.’’
§ 9.69
[Amended]
57. Section 9.72 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Southeastern New England’ is a term of
viticultural significance.’’
§ 9.75
52. Section 9.67 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Catoctin’ is a term of viticultural
significance.’’
§ 9.68
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Hermann’ is a term of viticultural
significance.’’
[Amended]
61. Section 9.76 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Knights Valley’ is a term of viticultural
significance.’’
§ 9.77
[Amended]
62. Section 9.77 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Altus’ is a term of viticultural
significance.’’
§ 9.78
[Amended]
63. Section 9.78 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘Ohio
River’ and ‘Ohio River Valley’ are terms
of viticultural significance.’’
§ 9.79
[Amended]
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Fmt 4702
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[Amended]
65. Section 9.80 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘York
Mountain’ is a term of viticultural
significance.’’
§ 9.81
[Amended]
66. Section 9.81 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Fiddletown’ is a term of viticultural
significance.’’
§ 9.82
[Amended]
67. Section 9.82 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Potter Valley’ is a term of viticultural
significance.’’
§ 9.83
[Amended]
68. Section 9.83 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘Lake
Erie’ is a term of viticultural
significance.’’
§ 9.84
[Amended]
69. Section 9.84 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘Paso
Robles’’ is a term of viticultural
significance.’’
§ 9.85
[Amended]
70. Section 9.85 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Willow Creek’ is a term of viticultural
significance.’’
§ 9.86
[Amended]
71. Section 9.86 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Anderson Valley’ is a term of
viticultural significance.’’
§ 9.87
[Amended]
72. Section 9.87 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Grand River Valley’ is a term of
viticultural significance.’’
§ 9.88
64. Section 9.79 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘Lake
Michigan’ and ‘Lake Michigan Shore’
are terms of viticultural significance.’’
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§ 9.80
65271
[Amended]
73. Section 9.88 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Pacheco Pass’ is a term of viticultural
significance.’’
E:\FR\FM\20NOP1.SGM
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§ 9.89
Federal Register / Vol. 72, No. 223 / Tuesday, November 20, 2007 / Proposed Rules
[Amended]
§ 9.98
[Amended]
74. Section 9.89 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Umpqua’ and ‘Umpqua Valley’ are
terms of viticultural significance.’’
83. Section 9.98 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Monterey’ is a term of viticultural
significance.’’
§ 9.90
§ 9.99
[Amended]
[Amended]
75. Section 9.90 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Willamette’ and ‘Willamette Valley’ are
terms of viticultural significance.’’
84. Section 9.99 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘Clear
Lake’ is a term of viticultural
significance.’’
§ 9.91
§ 9.100
[Amended]
[Amended]
76. Section 9.91 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘Walla
Walla’ and ‘Walla Walla Valley’ are
terms of viticultural significance.’’
85. Section 9.100 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Mesilla’ and ‘Mesilla Valley’ are terms
of viticultural significance.’’
§ 9.92
§ 9.101
[Amended]
77. Section 9.92 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Madera’ is a term of viticultural
significance.’’
§ 9.93
[Amended]
78. Section 9.93 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Mendocino’ is a term of viticultural
significance.’’
§ 9.94
[Amended]
79. Section 9.94 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Howell Mountain’ is a term of
viticultural significance.’’
§ 9.95
[Amended]
80. Section 9.95 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Clarksburg’ is a term of viticultural
significance.’’
§ 9.96
[Amended]
rmajette on PROD1PC64 with PROPOSALS
81. Section 9.96 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Mississippi Delta’ is a term of
viticultural significance.’’
§ 9.97
[Amended]
82. Section 9.97 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Sonoita’ is a term of viticultural
significance.’’
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[Amended]
86. Section 9.101 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘The
Hamptons’, ‘Long Island’, and ‘The
Hamptons, Long Island’ are terms of
viticultural significance.’’
§ 9.102
[Amended]
87. Section 9.102 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Sonoma’ and ‘Sonoma Mountain’ are
terms of viticultural significance.’’
§ 9.103
[Amended]
88. Section 9.103 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Mimbres Valley’ is a term of viticultural
significance.’’
§ 9.104
[Amended]
89. Section 9.104 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘South Coast’ is a term of viticultural
significance.’’
§ 9.105
[Amended]
90. Section 9.105 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Cumberland Valley’ is a term of
viticultural significance.’’
§ 9.106
[Amended]
91. Section 9.106 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘Yuba’
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and ‘North Yuba’ are terms of
viticultural significance.’’
§ 9.107
[Amended]
92. Section 9.107 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘Lodi’
is a term of viticultural significance.’’
§ 9.108
[Amended]
93. Section 9.108 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Ozark Mountain’ is a term of
viticultural significance.’’
§ 9.109
[Amended]
94. Section 9.109 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘George Washington Birthplace’ and
‘Northern Neck George Washington
Birthplace’ are terms of viticultural
significance.’’
§ 9.110
[Amended]
95. Section 9.110 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘San
Benito’ is a term of viticultural
significance.’’
§ 9.111
[Amended]
96. Section 9.111 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Kanawha’, ‘Kanawha River’, and
‘Kanawha River Valley’ are terms of
viticultural significance.’’
§ 9.112
[Amended]
97. Section 9.112 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Arkansas Mountain’ is a term of
viticultural significance.’’
§ 9.113
[Amended]
98. Section 9.113 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘Long
Island’ and ‘North Fork of Long Island’
are terms of viticultural significance.’’
§ 9.114
[Amended]
99. Section 9.114 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘Old
Mission Peninsula’ is a term of
viticultural significance.’’
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§ 9.115
[Amended]
purposes of part 4 of this chapter, ‘Mt.
Veeder’ is a term of viticultural
significance.’’
100. Section 9.115 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Ozark Highlands’ is a term of
viticultural significance.’’
§ 9.116
§ 9.124
[Amended]
101. Section 9.116 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Sonoma’ and ‘Sonoma Coast’ are terms
of viticultural significance.’’
§ 9.117
[Amended]
102. Section 9.117 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘Stags
Leap District’ is a term of viticultural
significance.’’
§ 9.118
[Amended]
103. Section 9.118 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘Ben
Lomond Mountain’ is a term of
viticultural significance.’’
§ 9.119
[Amended]
104. Section 9.119 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘Rio
Grande’, ‘Rio Grande Valley’, and
‘Middle Rio Grande Valley’ are terms of
viticultural significance.’’
§ 9.120
[Amended]
105. Section 9.120 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Sierra Foothills’ is a term of viticultural
significance.’’
§ 9.121
[Amended]
106. Section 9.121 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Warren Hills’ is a term of viticultural
significance.’’
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§ 9.122
[Amended]
107. Section 9.122 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Connecticut Highlands’ and ‘Western
Connecticut Highlands’ are terms of
viticultural significance.’’
§ 9.123
[Amended]
108. Section 9.123 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
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[Amended]
109. Section 9.124 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘Wild
Horse Valley’ is a term of viticultural
significance.’’
§ 9.125
[Amended]
110. Section 9.125 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘Texas
Hill Country’ and ‘Fredericksburg in the
Texas Hill Country’ are terms of
viticultural significance.’’
§ 9.126
[Amended]
111. Section 9.126 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘Santa
Clara Valley’ is a term of viticultural
significance.’’
§ 9.127
[Amended]
112. Section 9.127 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Cayuga’ and ‘Cayuga Lake’ are terms of
viticultural significance.’’
§ 9.128
[Amended]
113. Section 9.128 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Seneca Lake’ is a term of viticultural
significance.’’
§ 9.129
[Amended]
§ 9.132
[Amended]
117. Section 9.132 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Rogue Valley’ is a term of viticultural
significance.’’
§ 9.133
[Amended]
118. Section 9.133 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Rutherford’ is a term of viticultural
significance.’’
§ 9.134
[Amended]
119. Section 9.134 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Oakville’ is a term of viticultural
significance.’’
§ 9.135
[Amended]
120. Section 9.135 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Virginia’s Eastern Shore’ is a term of
viticultural significance.’’
§ 9.136
[Amended]
121. Section 9.136 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘Texas
Hill’ and ‘Texas Hill Country’ are terms
of viticultural significance.’’
§ 9.137
[Amended]
122. Section 9.137 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Grand Valley’ is a term of viticultural
significance.’’
114. Section 9.129 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Arroyo’, ‘Arroyo Grande’, and ‘Arroyo
Grande Valley’ are terms of viticultural
significance.’’
§ 9.138
§ 9.130
§ 9.139
[Amended]
65273
[Amended]
123. Section 9.138 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Benmore Valley’ is a term of
viticultural significance.’’
[Amended]
115. Section 9.130 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘San
Ysidro District’ is a term of viticultural
significance.’’
124. Section 9.139 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘Santa
Lucia’ and ‘Santa Lucia Highlands’ are
terms of viticultural significance.’’
§ 9.131
§ 9.140
[Amended]
116. Section 9.131 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘Mt.
Harlan’ is a term of viticultural
significance.’’
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[Amended]
125. Section 9.140 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘Atlas
Peak’ is a term of viticultural
significance.’’
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65274
§ 9.141
Federal Register / Vol. 72, No. 223 / Tuesday, November 20, 2007 / Proposed Rules
[Amended]
§ 9.150
[Amended]
126. Section 9.141 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Escondido’ and ‘Escondido Valley’ are
terms of viticultural significance.’’
135. Section 9.150 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Cucamonga’ and ‘Cucamonga Valley’
are terms of viticultural significance.’’
§ 9.142
§ 9.151
[Amended]
[Amended]
127. Section 9.142 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Bennett Valley’ is a term of viticultural
significance.’’
136. Section 9.151 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘Puget
Sound’ is a term of viticultural
significance.’’
§ 9.143
§ 9.152
[Amended]
128. Section 9.143 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Spring Mountain District’ is a term of
viticultural significance.’’
§ 9.144
[Amended]
129. Section 9.144 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘Texas
High Plains’ is a term of viticultural
significance.’’
§ 9.145
[Amended]
130. Section 9.145 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Dunnigan Hills’ is a term of viticultural
significance.’’
§ 9.146
[Amended]
131. Section 9.146 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘Lake
Wisconsin’ is a term of viticultural
significance.’’
§ 9.147
[Amended]
132. Section 9.147 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Hames Valley’ is a term of viticultural
significance.’’
§ 9.148
[Amended]
rmajette on PROD1PC64 with PROPOSALS
133. Section 9.148 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Seiad’ and ‘Seiad Valley’ are terms of
viticultural significance.’’
§ 9.149
[Amended]
134. Section 9.149 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘St.
Helena’ is a term of viticultural
significance.’’
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[Amended]
137. Section 9.152 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Malibu’, ‘Newton Canyon’, and
‘Malibu-Newton Canyon’ are terms of
viticultural significance.’’
§ 9.153
[Amended]
138. Section 9.153 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Redwood Valley’ is a term of
viticultural significance.’’
§ 9.154
[Amended]
139. Section 9.154 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Chiles Valley’ is a term of viticultural
significance.’’
§ 9.155
[Amended]
140. Section 9.155 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘Texas
Davis Mountains’ is a term of
viticultural significance.’’
§ 9.156
[Amended]
141. Section 9.156 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Diablo Grande’ is a term of viticultural
significance.’’
§ 9.157
[Amended]
142. Section 9.157 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘San
Francisco Bay’ is a term of viticultural
significance.’’
§ 9.158
[Amended]
143. Section 9.158 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
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Fmt 4702
Sfmt 4702
‘Mendocino Ridge’ is a term of
viticultural significance.’’
§ 9.159
[Amended]
144. Section 9.159 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Yorkville Highlands’ is a term of
viticultural significance.’’
§ 9.160
[Amended]
145. Section 9.160 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Yountville’ is a term of viticultural
significance.’’
§ 9.161
[Amended]
146. Section 9.161 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘Oak
Knoll District’, ‘Napa Valley’, and ‘Oak
Knoll District of Napa Valley’ are terms
of viticultural significance.’’
§ 9.163
[Amended]
147. Section 9.163 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Salado Creek’ is a term of viticultural
significance.’’
§ 9.164
[Amended]
148. Section 9.164 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘River
Junction’ is a term of viticultural
significance.’’
§ 9.165
[Amended]
149. Section 9.165 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Applegate Valley’ is a term of
viticultural significance.’’
§ 9.166
[Amended]
150. Section 9.166 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Diamond Mountain District’ is a term of
viticultural significance.’’
§ 9.167
[Amended]
151. Section 9.167 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘Red
Mountain’ is a term of viticultural
significance.’’
§ 9.168
[Amended]
152. Section 9.168 is amended by
adding a sentence at the end of
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paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘Fair
Play’ is a term of viticultural
significance.’’
§ 9.169
[Amended]
153. Section 9.169 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘Red
Hills of Lake County’ and ‘Red Hills
Lake County’ are terms of viticultural
significance.’’
§ 9.170
[Amended]
154. Section 9.170 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘Long
Island’ is a term of viticultural
significance.’’
§ 9.171
[Amended]
155. Section 9.171 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘San
Bernabe’ is a term of viticultural
significance.’’
§ 9.172
[Amended]
156. Section 9.172 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter, ‘West
Elks’ is a term of viticultural
significance.’’
§ 9.173
[Amended]
157. Section 9.173 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Rockpile’ is a term of viticultural
significance.’’
§ 9.174
[Amended]
[Amended]
rmajette on PROD1PC64 with PROPOSALS
[Amended]
160. Section 9.177 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Alexandria Lakes’ is a term of
viticultural significance.’’
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§ 9.179
[Amended]
162. Section 9.179 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Southern Oregon’ is a term of
viticultural significance.’’
§ 9.180
[Amended]
163. Section 9.180 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Dundee’ and ‘Dundee Hills’ are terms of
viticultural significance.’’
§ 9.181
164. Section 9.181 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘McMinnville’ is a term of viticultural
significance.’’
§ 9.182
[Amended]
165. Section 9.182 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Ribbon Ridge’ is a term of viticultural
significance.’’
§ 9.184
§ 70.701
[Amended]
169. Section 70.701 is amended by
adding a sentence at the end of
paragraph (c) to read as follows: ‘‘A
petition to establish a new American
viticultural area or to modify an existing
American viticultural area is subject to
the rules in part 9 of this chapter.’’
Signed: October 18, 2007.
John J. Manfreda,
Administrator.
Approved: November 7, 2007.
Timothy E. Skud,
Deputy Assistant Secretary (Tax, Trade, and
Tariff Policy).
[FR Doc. E7–22717 Filed 11–19–07; 8:45 am]
BILLING CODE 4810–31–P
[Amended]
PART 70—PROCEDURE AND
ADMINISTRATION
168. The authority citation for part 70
continues to read as follows:
Authority: 5 U.S.C. 301 and 552; 26 U.S.C.
4181, 4182, 5146, 5203, 5207, 5275, 5367,
5415, 5504, 5555, 5684(a), 5741, 5761(b),
5802, 6020, 6021, 6064, 6102, 6155, 6159,
6201, 6203, 6204, 6301, 6303, 6311, 6313,
6314, 6321, 6323, 6325, 6326, 6331–6343,
6401–6404, 6407, 6416, 6423, 6501–6503,
6511, 6513, 6514, 6532, 6601, 6602, 6611,
6621, 6622, 6651, 6653, 6656–6658, 6665,
6671, 6672, 6701, 6723, 6801, 6862, 6863,
Frm 00049
Fmt 4702
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
33 CFR Part 165
[Docket No. USCG–2007–0064]
RIN 1625–AA00
Safety Zone: City of West Haven
Fireworks, Bradley Point, West Haven,
CT
Coast Guard, DHS.
Notice of proposed rulemaking.
AGENCY:
[Amended]
167. Section 9.184 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Trinity Lakes’’ is a term of viticultural
significance.’’
PO 00000
6901, 7011, 7101, 7102, 7121, 7122, 7207,
7209, 7214, 7304, 7401, 7403, 7406, 7423,
7424, 7425, 7426, 7429, 7430, 7432, 7502,
7503, 7505, 7506, 7513, 7601–7606, 7608–
7610, 7622, 7623, 7653, 7805.
[Amended]
166. Section 9.183 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Yamhill-Carlton District’ is a term of
viticultural significance.’’
159. Section 9.176 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Capay’ and ‘Capay Valley’ are terms of
viticultural significance.’’
§ 9.177
[Amended]
161. Section 9.178 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Columbia Gorge’ is a term of
viticultural significance.’’
§ 9.183
158. Section 9.174 is amended by
adding a sentence at the end of
paragraph (a) to read as follows: ‘‘For
purposes of part 4 of this chapter,
‘Yadkin’ and ‘Yadkin Valley’ are terms
of viticultural significance.’’
§ 9.176
§ 9.178
65275
Sfmt 4702
ACTION:
SUMMARY: The Coast Guard proposes to
amend the permanent safety zone for
the City of West Haven Fireworks by
establishing the zone around a fireworks
launch site at the approximate position
41°15′7″ N, 72°57′26″ W. This change to
the zone would allow the zone to be
established around the launch site,
whether it is on a barge or on shore.
Establishment of this safety zone is
necessary to protect recreational vessel
traffic, spectators, and those operating
the fireworks display.
DATES: Comments and related material
must reach the Coast Guard on or before
January 22, 2008.
ADDRESSES: You may submit comments
identified by Coast Guard docket
number USCG–2007–0064 to the Docket
Management Facility at the U.S.
Department of Transportation. To avoid
duplication, please use only one of the
following methods:
(1) Online: https://
www.regulations.gov.
(2) Mail: Docket Management Facility
(M–30), U.S. Department of
E:\FR\FM\20NOP1.SGM
20NOP1
Agencies
[Federal Register Volume 72, Number 223 (Tuesday, November 20, 2007)]
[Proposed Rules]
[Pages 65261-65275]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E7-22717]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Alcohol and Tobacco Tax and Trade Bureau
27 CFR Parts 4, 9, and 70
[Notice No. 78]
RIN 1513-AB39
Proposed Revision of American Viticultural Area Regulations
(2006R-325P)
AGENCY: Alcohol and Tobacco Tax and Trade Bureau, Treasury.
ACTION: Notice of proposed rulemaking.
-----------------------------------------------------------------------
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);
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.
SUPPLEMENTARY INFORMATION:
Background
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 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.
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 Sec. Sec. 4.25(e)(2) and
70.701(c) to establish AVAs. Paragraph (b) of Sec. 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
[[Page 65262]]
businesses, can limit competition, and can be used by petitioners to
adversely affect a competitor's business. We note in this regard that
where a conflict exists between a proposed AVA name and an established
brand name used on a wine label approved by TTB, a choice must be made
between competing commercial interests; we do not believe that, in the
context of the labeling provisions of the FAA Act, it is an appropriate
governmental role to make choices that undermine the commercial
interests of particular entities, if such choices can be avoided.
In addition, we note that over the years there has been an increase
in the number of petitions for the establishment of new AVAs within
already existing AVAs. Because the idea behind the recognition of an
AVA is that it is a unique area for viticultural purposes with
reference to what is outside it, we believe that preserving the
integrity of the AVA program mandates clarifying the standards for AVAs
to foster greater scrutiny on the establishment of new AVAs within
existing AVAs.
Finally, there is a need to explain and clarify the AVA petition
submission and review process and to clearly state the existing
authority to deny, and the grounds for denying, an AVA rulemaking
petition.
AVA Name and Brand Name Conflict
The designation of a new AVA can create a conflict with existing
brand names. This conflict can arise because a brand name that includes
an approved AVA name may not be used unless at least 85 percent of the
wine is derived from grapes grown within the boundaries of the AVA.
Moreover, TTB prohibits the use of misleading brand names (27 CFR
4.33), and also prohibits brand names that tend to create the
impression that the wine is entitled to bear a designation recognized
by TTB unless the wine meets the requirements for that designation (27
CFR 4.39(a)(8)). The establishment of a new AVA could give rise to a
misleading impression regarding the provenance of a wine that carries a
known brand name similar to the AVA name but that does not meet the 85
percent requirement that applies to AVA name usage, thereby not
providing the consumer with adequate information as to the identity and
quality of the wine and creating confusion for consumers and
jeopardizing the producer's continued use of the wine label in
question.
The effect of the current regulatory provisions is to give
precedence to the establishment of an AVA over the use of a brand name
on a previously approved label. If a wine is not eligible for labeling
with the viticultural area name and that name appears in the brand
name, then the label would not be in compliance and TTB would require
the bottler to obtain approval of a new label with a new brand name. In
effect, vintners are on notice that continued use of a brand name
having geographical significance could be jeopardized by the subsequent
establishment of an AVA using an identical or similar name. In
practice, however, TTB works with petitioners to amend petitions in
order to limit the adverse impact on established brand names.
For several reasons, we believe it is important to dispel any
misconceptions that AVA petitions will be approved without regard to
their impact on established brands. First, we do not wish to discount
the commercial and informational value of an established brand name,
which often is built up over a period of time by substantial
investments in capital and hard work. Second, we do not wish to
overlook the possibility that, contrary to the purpose of the FAA Act,
the use of the new AVA name on a label could be misleading to those
consumers who have associated that name with wine bearing an identical
or similar brand name but produced from grapes grown outside the new
AVA. Finally, we do not believe it to be sound public policy to allow
an AVA petitioner to use a petition not for purposes consistent with
the FAA Act but rather as a means to limit competition from holders of
established brands.
AVAs Within AVAs
In recent years, TTB has received an increasing number of petitions
that propose a boundary change to an existing AVA, the establishment of
an AVA entirely or partially within an existing AVA, or the
establishment of a new, larger AVA that would encompass all of one or
more existing AVAs. TTB has come to recognize that such petitions can
create the appearance of a conflict or inconsistency because, with
reference to the criteria set forth in Sec. 9.3(b), the new petition
might draw into question the accuracy and validity of the evidence
presented in support of the establishment of the existing AVA or the
legitimacy of the justification for establishing the AVA. For example,
with reference to the boundary description and the geographical
features criteria, a change in an existing AVA boundary, or the
adoption of a new AVA within an existing AVA, could suggest that the
original boundary was improperly drawn or that there is no unity or
consistency in the features of the existing AVA that give it a unique
and distinctive identity in a viticultural sense.
When a new AVA was established entirely within an existing AVA, TTB
traditionally took the position that a wine that meets the 85 percent
standard for the new, smaller AVA would automatically meet the 85
percent standard for the larger AVA. However, depending on the facts
involved, we recognize that this position could run counter to the
principle that an AVA is unique with reference to what is outside its
boundary for viticultural purposes. In other words, depending on the
unique facts presented in each AVA petition, an argument could be made
that the smaller AVA is, by its very existence, distinct from the AVA
that surrounds it, with the result that wine produced within it could
not be labeled with the name of the larger AVA.
We believe that in order to preserve the integrity of the AVA
program, the above considerations demonstrate a need for greater
clarity for, and closer scrutiny of, petitions for the establishment of
new AVAs and for changes to existing AVAs. The petitioner should be
expected to dispel any apparent inconsistency or to explain why it is
acceptable.
Petition Submission and Review Process
Under TTB's current AVA petition process, we process all AVA
petitions that are submitted to us. TTB's practice is to work with the
petitioner both before and after submission of the petition to ensure
that it contains all necessary information. TTB specialists spend
considerable time reviewing the petition, contacting the petitioner,
and requesting missing evidence from the petitioner. In some cases,
deficient petitions are returned to the petitioner for revision and
resubmission. Only after the petition is perfected (that is, it appears
to contain all of the information required under Sec. 9.3) do we
proceed with preparation of an appropriate rulemaking document. As a
general rule, the practice of TTB has been to accept the information
provided by the petitioner in a perfected petition with the assumption
that the information provided is true and correct. TTB does not conduct
a detailed, separate investigation of the validity of the petition
evidence at that point. TTB relies on comments provided in response to
the published notice of proposed rulemaking (NPRM), to confirm or
refute the information provided by the petitioner.
We also note that whereas the TTB regulations in part 9 speak in
terms of
[[Page 65263]]
what an AVA petition must contain, they do not clearly reflect the
fundamental administrative principle that the authority to grant
carries a concomitant authority to deny an AVA petition. We have come
to realize that some believe that all that is necessary to successfully
petition for the establishment of an AVA is to submit a petition with
evidence under the terms of Sec. 9.3(b).
Our view, however, is that under the current regulatory framework
approval of an AVA petition is totally discretionary, because TTB
already has authority not to initiate rulemaking, or not to approve the
petitioned-for AVA action after publication of a proposal, for any one
of a number of reasons, such as:
The evidence submitted with the petition does not
adequately support use of the name proposed for a new AVA;
The evidence of distinguishing features submitted with the
petition does not support drawing or redrawing the AVA boundary as
proposed;
The extent of viticulture within the proposed boundary is
not sufficient to constitute a grape-growing region within the
intendment of the AVA program; or
Approval of a proposed new AVA would be inconsistent with
the purpose of the FAA Act, contrary to another statute or regulation,
or otherwise not in the public interest.
We believe, however, that the part 9 regulations should more
completely describe the submission and review process, including the
various actions that TTB may take at each stage of the AVA petitioning
procedure.
Overview of Proposed Changes
Based on the above considerations, TTB believes that the present
regulations require further clarification of the regulatory basis for
the most effective administration of the AVA program. To help clarify
this situation, this document proposes to amend three provisions within
part 4 of the TTB regulations that concern AVAs, to revise subparts A
and B of part 9 of the TTB regulations, to amend various sections
within subpart C of part 9, and to amend one provision within part 70
of the TTB regulations.
Part 4 Amendments
At the beginning of the AVA program, TTB's predecessor agency and
Treasury issued 27 CFR 4.39(i), which permits the continued use of
brand names that had been used in certificates of label approval
(COLAs) issued before July 7, 1986, subject to application of any one
of three conditions. The first two conditions refer to existing
appellation of origin labeling requirements, and the third condition
provides for labeling the wine with some other statement that TTB finds
to be sufficient to dispel the impression that the geographic area
suggested by the brand name is indicative of the origin of the wine.
This ``grandfather'' approach was intended to protect brand names
that had existed prior to the development of the AVA program. This
solution, however, was not forward-looking and, therefore, does not
address conflicts between AVAs and brand names in COLAs that came into
existence after July 7, 1986. Since July 1986, more than 100 AVAs have
been established in response to petitions from industry members and
grape growers, reflecting the increased interest in, and spread of,
viticulture throughout the United States. In addition, in recent years
an increasing number of petitions have been submitted that, if the AVA
were to be established with the petitioned-for name, would affect
established brand names. As noted above, our intent in administering
the AVA program, consistent with the intent behind the original
``grandfather'' approach, is to recognize established grape-growing
regions while avoiding interference with established brand names.
While TTB will continue to work with future AVA petitioners to
limit the adverse impact on established brand names, we recognize that
sometimes it will not be possible to amend a petition to achieve this
result. In such cases, we believe that application of a new prospective
``grandfather'' approach would achieve the most balanced result.
Accordingly, we are proposing to amend Sec. 4.39(i) by adding a new
``grandfathering'' standard that would apply in the case of AVAs
established after adoption of the final rule in this matter and that
would be based on a specified number of years that a COLA was issued,
and whether the brand label was in actual commercial use, before
receipt by TTB of a perfected AVA petition. This approach would permit
the establishment of the AVA and at the same time afford appropriate
protection of existing labels.
In addition, we propose to update two provisions within Sec.
4.25(e) and conform them to the proposed changes to part 9, as
explained below.
Part 9 Amendments
The proposed changes to subparts A and B of part 9 are intended to
clarify the operation of the AVA petition and rulemaking process by
explaining how a petitioner must submit an AVA petition to TTB, by
setting forth with considerably greater specificity what information a
petition must contain, and by explaining how TTB will process these
petitions. The amended regulations would also clearly state that TTB
may, at its discretion, decide not to proceed with rulemaking after
receipt of a petition but that TTB will provide an explanation to the
petitioner in such a case.
Further, the proposed amendments to subparts A and B of part 9
specifically address the requirements for proposed boundary and name
changes to existing AVAs, in order to ensure that an AVA proposal
published by TTB to change an existing AVA (for example, a boundary
expansion) has adequate supporting evidence. The specification of
requirements for boundary changes will ensure that TTB receives
petitions that conform to AVA regulatory standards rather than to
considerations that are not central to the AVA concept, such as the
desire to bring an individual vineyard into an existing AVA.
We also propose to clarify in the subpart A and B regulatory texts
that TTB has the discretion to decide whether or not to proceed with
rulemaking with regard to any submitted and perfected AVA petition,
provided the reasons are communicated to the petitioner in writing. In
addition, the proposed amendments reflect the authority of TTB to
decide not to proceed with approval of the petitioned-for AVA action
after publication of the NPRM. To these ends, the proposed regulatory
amendments attempt to make a clear distinction between the petition
process and the rulemaking process, because a decision not to go
forward may be made at either stage.
The proposed amendments in subpart C are intended to draw the
attention of the reader to the viticultural significance of names of
previously established AVAs, or notable portions of those names, for
wine labeling purposes under part 4 of the TTB regulations. These
amendments are consistent with the practice employed by TTB over the
past several years of including a second sentence in paragraph (a) of
each section covering a new AVA, to specify what is viticulturally
significant as a result of the establishment of the AVA. While in most
cases only the full name of the AVA is specified in each of the subpart
C amendments contained in this document, in some instances a portion of
the name is also identified as viticulturally significant if, based on
TTB's label approval practice, its use on a label could be taken to
represent the full AVA name. While we have attempted to avoid
specifying a part of an AVA name where such action might
[[Page 65264]]
jeopardize the continued use of an approved label, we specifically
invite comments on whether any existing labels would be at risk if the
proposed amendments are adopted as a final rule.
Part 70 Amendment
Finally, we propose a conforming amendment to Sec. 70.701(c) of
the TTB regulations (27 CFR 70.701(c)), which concerns petitions to
change TTB's rules.
Additional points regarding the proposed regulatory amendments are
set forth in the section-by-section discussion below.
Section-by-Section Discussion of Proposed Changes
Section 4.25
We are proposing to revise the definition of viticultural area for
American wine contained in Sec. 4.25(e)(1)(i) to conform it to the new
definition of ``American viticultural area'' proposed for part 9. In
addition, we are proposing to revise Sec. 4.25(e)(2) to conform it to
the restructuring of part 9 and to correct a wording error in the
present text.
Section 4.39(i)
We are proposing to add a new paragraph (3) to Sec. 4.39(i) to set
forth the new grandfather provision, with a consequential redesignation
of present paragraph (3) as (4). The new provision would apply to AVAs
and terms used in AVA names established as viticulturally significant
under part 9 after the effective date of the final rule on this
rulemaking action. As in the case of the present paragraph (2)
grandfather provision, the new text would require the use of dispelling
information regarding the origin of the wine.
The proposed new regulatory text refers to brand names that were
used in COLAs issued prior to the 5-year period immediately preceding
receipt of the perfected petition for establishment of the new AVA and
that were in actual commercial use on labels for at least 3 years
during that 5-year period as demonstrated by the COLA holder. We
decided to propose two different periods of time because COLA issuance
often precedes entry of a product into the marketplace by a year or
more. We chose the 5-year period for COLA issuance because we believe
that this is a reasonable period of time for the establishment of an
ongoing viticultural enterprise, and we chose the 3-year period for
actual commercial use because we believe that this is a reasonable
period of time for achieving consumer recognition and loyalty. Under
the proposed regulatory text, the mere possession of a COLA for 5 years
or more would not be sufficient to trigger the new ``grandfather''
clause--it also would have to be established that the product in fact
had a presence in the marketplace for at least 3 years during the 5-
year period. We would not consider the mere placement of a label on a
wine bottle to be actual commercial use because more would be required,
that is, actual entry into the marketplace.
In addition to new paragraph (3), we are proposing to amend Sec.
4.39(i) by revising paragraphs (1) and (2) to better express the cross-
references and to simplify the text of paragraph (2) by removing
paragraph (2)(i), which repeats a rule stated in paragraph (1) and thus
is redundant. These proposed changes are purely editorial and do not
affect the substance of the texts.
Section 9.0
We are proposing to add a new Sec. 9.0 before subpart A to define
the scope of the part 9 regulations. This new section replaces, and
slightly expands upon the wording of, present Sec. 9.1. We believe
that this scope section is more appropriately placed before subpart A
since it is intended to operate more as a reader's aid than as a
substantive regulation.
Section 9.1
This proposed definitions section would replace present Sec. 9.11
and would be the first section under subpart A. We believe that it is
better regulatory practice to have a definitions section as the first
substantive section within a part rather than following other sections
that use the terms defined in it. The text is divided into paragraphs
(a) and (b), with paragraph (a) containing the various definitions and
paragraph (b) containing the ``use of other terms'' recitation in the
present text, which is more substantive than definitional in nature.
Within paragraph (a) of new Sec. 9.1, we propose to add new
definitions covering ``appropriate TTB officer,'' ``AVA,'' ``perfected
petition,'' ``person,'' ``petition,'' ``petitioner,'' ``term of
viticultural significance,'' and ``TTB.'' In addition, we propose to
combine the present definitions for ``American'' and ``viticultural
area'' into one definition of ``American viticultural area.'' Finally,
we propose a nonsubstantive wording change to the definition of
``approved map.''
Section 9.3
We are proposing to add a new Sec. 9.3 to describe the delegations
of the Administrator's authorities for the administration of part 9.
This is consistent with the practice under other parts of the TTB
regulations.
Section 9.11
This new section would be the first section under subpart B, is
intended to cover in more detail the petition submission process, and
essentially reflects current practice as described above. It also
clarifies both TTB's authority to decide whether to take action in
response to a petition and the fact that mere receipt of a petition
does not compel the publication of a rulemaking document in the Federal
Register.
Section 9.12
This new section sets forth significantly elaborated AVA petition
content standards to address a number of the concerns outlined earlier
in this document. The proposed text distinguishes between petitions for
the establishment of a new AVA and petitions for changes to an existing
AVA. It also sets forth specific additional standards for petitions
proposing the establishment of a new AVA entirely within, or
overlapping, an existing AVA, or proposing the establishment of a new,
larger AVA encompassing all of one or more existing AVAs. In the case
of an AVA entirely within another AVA, the text states that in some
cases TTB may determine that the smaller AVA will not be considered to
be part of the larger AVA because of its particular distinctiveness;
such a determination would be made only in connection with rulemaking
involving a new AVA and therefore would only be applied prospectively.
In addition, in the case of changes to existing AVAs, the text
distinguishes between boundary changes and name changes. TTB believes
that these distinctions are necessary to maintain the integrity of the
AVA program, because different evidence or other information may be
necessary to support a petition depending on the specific petitioned-
for action.
Section 9.13
This new section covers the initial processing of an AVA petition
after receipt by TTB, and it largely reflects TTB's present practice.
The proposed text clarifies that the mere receipt of a perfected
petition does not necessarily mean that TTB will proceed with
rulemaking, and that the reasons for not proceeding with rulemaking
will be set forth in writing to the petitioner. Thus, it is the intent
of TTB to maintain a
[[Page 65265]]
clear distinction between the processing of a petition and the
initiation of rulemaking, which is the subject of the next section. If
TTB decides to proceed with rulemaking, the new section also provides
that TTB will advise the petitioner of the date of receipt of the
perfected petition and will place a notice on the TTB Web site that the
petition has been accepted for rulemaking.
Section 9.14
This new section covers the rulemaking process, which commences
only after a decision is made under Sec. 9.13 to proceed to rulemaking
(preparation and publication of the NPRM). It includes a description of
various final actions that TTB might take after the close of the public
comment period and review of the comments submitted and any other
relevant information that comes to the attention of TTB that might have
a bearing on the action taken by TTB.
Among the proposed final actions that TTB might take is publication
of a notice withdrawing the proposal to establish the AVA. In addition
to a failure of a petition to identify an actual grape-growing region
or to provide adequate name, boundary, and distinguishing features
evidence, a proposed basis for such a withdrawal could be that adoption
of the proposal would be inconsistent with a purpose of the FAA Act or
any other Federal statute or regulation or would be otherwise contrary
to the public interest. TTB believes that the latter grounds for
withdrawing a proposal are appropriate based on the principle that
administrative practice should always be consistent with, and never
contrary to, law and public policy. As in the case of a withdrawal
based on insufficient petition evidence, the Federal Register document
announcing the withdrawal would explain the specific considerations
upon which the withdrawal is based.
Subpart C
The proposed amendments within subpart C (in paragraphs 6 through
166) are consistent with the practice employed by TTB, which is to
include a sentence in paragraph (a) to specify what is viticulturally
significant as a result of the establishment of the AVA. The
specification of a portion of an AVA name is based on TTB's label
approvals as reflected in the TTB Public COLA Registry.
Section 70.701(c)
The amendment to Sec. 70.701(c) involves the addition of a
reference to part 9 regarding a petition to establish a grape-growing
region as a new AVA or to modify an existing AVA.
Public Participation
Comments Invited
We invite comments from interested members of the public on this
proposed rulemaking, including the proposed regulatory text.
In addition, we invite comment on the following specific questions:
1. Whether additional or different standards should apply to the
establishment of an AVA; for example, whether there should be a
requirement that a specified percentage of the land mass of the
proposed AVA be involved in viticultural activities.
2. Whether in some or all cases the establishment of a smaller AVA
located within the boundaries of a larger AVA should result in a
prohibition against the use of the larger AVA name on wine labels.
3. Whether the use of a ``grandfather'' provision to avoid
conflicts between an established brand name and the establishment of a
proposed AVA is appropriate.
4. Whether the terms of the proposed ``grandfather'' provision are
appropriate and, if so, what time periods should apply to establish
commercial use of the brand name involved in a conflict.
5. Whether it would be more appropriate to adopt an alternative to
the ``grandfather'' provision proposed that would apply to brand names
that have longstanding commercial use under one or more existing
certificates of label approval without specifying a time period.
6. What type of dispelling information would prevent consumers from
being misled as to the origin of the wine when a ``grandfather''
provision applies. Other comments for a requirement on dispelling
information are encouraged.
Submitting Comments
You may submit comments on this notice by one of the following
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.
2007-0068 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.
Hand Delivery/Courier in lieu of mail: Alcohol and Tobacco
Tax and Trade Bureau, 1310 G Street, NW., Suite 200-E, Washington, DC
20005.
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
On the Federal e-rulemaking portal, we will post, and you may view,
copies of this notice and any electronic, mailed, or hand-delivered
comments we receive about this proposal. 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 or hand-delivered comments, all address
[[Page 65266]]
information, including e-mail addresses. We may omit voluminous
attachments or material that we consider unsuitable for posting.
You also may view copies of this notice and any electronic, mailed,
or hand-delivered comments we receive about this proposal 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 Analysis and Notices
Executive Order 12866
This proposed rule is not a significant regulatory action as
defined by Executive Order 12866. This proposed rule merely clarifies
existing regulatory standards and imposes no new reporting,
recordkeeping, or other administrative requirements. Therefore, it
requires no regulatory assessment.
Regulatory Flexibility Act
We certify that these proposed regulations, if adopted, would not
have a significant economic impact on a substantial number of small
entities. As the submittal of a petition to TTB to establish a new AVA
or change an existing AVA is voluntary, we believe that the proposed
regulation imposes no new reporting, recordkeeping, or other
administrative requirement. Therefore, no regulatory flexibility
analysis is required.
Paperwork Reduction Act
The collection of information contained in this notice of proposed
rulemaking has been submitted to the Office of Management and Budget
(OMB) for review in accordance with the Paperwork Reduction Act of 1995
(44 U.S.C. 3507(d)). Comments on the collection of information should
be sent to OMB at Alexander--T.--Hunt@omb.eop.gov, or by paper mail to
Office of Management and Budget, Attention: Desk Officer for the
Department of the Treasury, Office of Information and Regulatory
Affairs, Washington, DC 20503. A copy should also be sent to the
Alcohol and Tobacco Tax and Trade Bureau by any of the methods
previously described. Because OMB must complete its review of the
collection of information between 30 and 60 days after publication,
comments on the information collection should be submitted not later
than December 20, 2007. Comments are specifically requested concerning:
Whether the proposed collection of information is
necessary for the proper performance of the functions of the Alcohol
and Tobacco Tax and Trade Bureau, including whether the information
will have practical utility;
The accuracy of the estimated burden associated with the
proposed collection of information (see below);
How to enhance the quality, utility, and clarity of the
information to be collected;
How to minimize the burden of complying with the proposed
collection of information, including the application of automated
collection techniques or other forms of information technology; and
Estimates of capital or start-up costs and costs of
operation, maintenance, and purchase of services to provide
information.
The collection of information in this proposed regulation is in 27
CFR 9.11 and 9.12. This information is required to petition TTB to
establish a new AVA or to change an existing AVA. This information will
be used to verify evidence sources and to determine whether the
information is sufficient to begin the rulemaking process (that is,
proceed to a notice of proposed rulemaking). The collection of
information is required to obtain a benefit. The likely respondents are
non-profit institutions and small businesses or organizations.
Estimated total annual reporting and/or recordkeeping
burden: 2,398 hours.
Estimated average annual burden hours per respondent: 218
hours.
Estimated number of respondents: 11 per year.
Estimated annual frequency of responses: 1.
An agency may not conduct or sponsor, and a person is not required
to respond to, a collection of information unless it displays a valid
control number assigned by OMB.
Drafting Information
Rita D. Butler 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, and Wine.
27 CFR Part 9
Wine.
27 CFR Part 70
Administrative practice and procedure, Claims, Excise taxes,
Freedom of information, Law enforcement, Penalties, Reporting and
recordkeeping requirements, and Surety bonds.
Proposed Amendments to the Regulations
For the reasons discussed in the preamble, TTB proposes to amend 27
CFR, chapter I, parts 4, 9, and 70, 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. 4.25, paragraphs (e)(1)(i) and (e)(2) are revised to
read as follows:
Sec. 4.25 Appellations of origin.
* * * * *
(e) Viticultural area--(1) Definition--(i) American wine. A
delimited grape growing region having distinguishing features as
described in part 9 of this chapter and a name and a delineated
boundary as established in part 9 of this chapter.
* * * * *
(2) Establishment of American viticultural areas. A petition for
the establishment of an American viticultural area may be made to the
Administrator by any interested party, pursuant to part 9 and Sec.
70.701(c) of this chapter. The petition must be made in written form
and must contain the information specified in Sec. 9.12 of this
chapter.
* * * * *
3. In Sec. 4.39, paragraphs (i)(1) and (i)(2) are revised,
paragraph (i)(3) is redesignated as paragraph (i)(4), and a new
paragraph (i)(3) is added, to read as follows:
Sec. 4.39 Prohibited practices.
* * * * *
(i) Geographic brand names. (1) Except as provided in paragraph
(i)(2) or (3) of this section, a brand name of viticultural
significance may not be used unless the wine meets the appellation of
origin requirements for the geographic area named.
(2) For brand names used in existing certificates of label approval
issued prior to July 7, 1986:
(i) The wine shall be labeled with an appellation of origin in
accordance with Sec. 4.34(b) of this chapter as to location and size
of type of either:
[[Page 65267]]
(A) A county or a viticultural area, if the brand name bears the
name of a geographic area smaller than a state; or
(B) A state, county or a viticultural area, if the brand name bears
a state name; or
(ii) The wine shall be labeled with some other statement which the
appropriate TTB officer finds to be sufficient to dispel the impression
that the geographic area suggested by the brand name is indicative of
the origin of the wine.
(3) Brand names that do not meet the requirements of paragraph
(i)(2) of this section and that contain the name of a viticultural area
or other term of viticultural significance established under part 9 of
this chapter on or after [INSERT EFFECTIVE DATE OF FINAL RULE] may be
used in conjunction with information which the appropriate TTB officer
finds to be sufficient to dispel the impression that the geographic
area suggested by the brand name is indicative of the origin of the
wine, provided that the brand name:
(i) Was used in an existing certificate of label approval issued
prior to the 5-year period immediately preceding receipt of the
perfected petition for establishment of the viticultural area; and
(ii) Was in actual commercial use on labels for at least 3 years
during that 5-year period.
* * * * *
PART 9--AMERICAN VITICULTURAL AREAS
4. The authority citation for part 9 continues to read as follows:
Authority: 27 U.S.C. 205.
5. A new Sec. 9.0 is added before Subpart A to read as follows:
Sec. 9.0 Scope.
The regulations in this part relate to American viticultural areas
created under the authority of the Federal Alcohol Administration Act
and referred to in Sec. 4.25(e) of this chapter.
6. Subparts A and B are revised to read as follows:
Subpart A--General Provisions
Sec. 9.1 Definitions.
(a) General. For purposes of this part, and unless the specific
context otherwise requires, the following terms shall have the meanings
indicated:
Administrator. The Administrator, Alcohol and Tobacco Tax and Trade
Bureau, Department of the Treasury, Washington, DC.
American viticultural area. A viticultural area as defined in Sec.
4.25(e)(1)(i) of this chapter.
Appropriate TTB officer. An officer or employee of the Alcohol and
Tobacco Tax and Trade Bureau authorized to perform any functions
relating to the administration or enforcement of this part by TTB Order
1135.9, Delegation of the Administrator's Authorities in 27 CFR Part 9,
American Viticultural Areas.
Approved map. The U.S.G.S. map(s) used to define the boundary of an
approved AVA.
AVA. An American viticultural area.
Perfected petition. A petition containing all of the evidence
meeting the requirements of Sec. 9.12 and containing sufficient
supporting information for TTB to decide whether or not to proceed with
rulemaking to establish a new AVA or to change an existing AVA.
Person. An individual, partnership, association, corporation, or
other entity.
Petition. A written request to establish a new AVA or to change an
existing AVA, signed by the petitioner or an authorized agent of the
petitioner, and submitted in accordance with this part and Sec.
70.701(c) of this chapter.
Petitioner. An individual or entity that submits a petition to TTB.
Term of viticultural significance. A term recognized under Sec.
4.39(i)(3) of this chapter.
TTB. The Alcohol and Tobacco Tax and Trade Bureau, Department of
the Treasury, Washington, DC.
U.S.G.S. The United States Geological Survey.
(b) Use of other terms. Any other term defined in the Federal
Alcohol Administration Act and used in this part shall have the same
meaning assigned to it by that Act.
Sec. 9.2 Territorial extent.
This part applies to the several States of the United States, the
District of Columbia, and Puerto Rico.
Sec. 9.3 Delegations of the Administrator.
Most of the regulatory authorities of the Administrator contained
in this part are delegated to appropriate TTB officers. Those TTB
officers are specified in TTB Order 1135.9, Delegation of the
Administrator's Authorities in 27 CFR Part 9, American Viticultural
Areas. You may obtain a copy of this order by accessing the TTB Web
site (https://www.ttb.gov) or by mailing a request to the Alcohol and
Tobacco Tax and Trade Bureau, National Revenue Center, 550 Main Street,
Room 1516, Cincinnati, OH 45202.
Subpart B--AVA Petitions
Sec. 9.11 Submission of AVA petitions.
(a) Procedure for petitioner. Any person may submit an AVA petition
to TTB to establish a grape-growing region as a new AVA, to change the
boundary of an existing AVA, or to change the name of an existing AVA.
The petitioner is responsible for including with the petition all of
the information specified in Sec. 9.12. The person submitting the
petition is also responsible for providing timely and complete
responses to TTB requests for additional information to support the
petition.
(b) How and where to submit an AVA petition. The AVA petition may
be sent to TTB using the U.S. Postal Service or a private delivery
service. A petition sent through the U.S. Postal Service should be
addressed to: Regulations and Rulings Division, Alcohol and Tobacco Tax
and Trade Bureau, 1310 G Street, NW., Washington, DC 20220. A petition
sent via a private delivery service should be directed to: Regulations
and Rulings Division, Alcohol and Tobacco Tax and Trade Bureau, Suite
200E, 1310 G Street, NW., Washington, DC 20005.
(c) Purpose and effect of submission of AVA petitions. The
submission of a petition under this subpart is intended to provide TTB
with sufficient documentation to propose the establishment of a new AVA
or to propose changing the name or boundary of an existing AVA. After
considering the petition evidence and any other relevant information,
TTB shall decide what action to take in response to a petition and
shall so advise the petitioner. Nothing in this chapter shall, or shall
be interpreted to, compel any Department of the Treasury official to
proceed to rulemaking in response to a submitted petition.
Sec. 9.12 AVA petition requirements.
(a) Establishment of an AVA in general. A petition for the
establishment of a new AVA must include all of the evidentiary
materials and other information specified in this section. The petition
must stand on its own and require no independent verification or
research by TTB.
(1) Name evidence. The name identified for the proposed AVA must be
currently and directly associated with an area in which viticulture
exists. All of the area within the proposed AVA boundary must be
nationally or locally known by the name specified in the petition,
although the use of that name may extend beyond the proposed AVA
boundary. The name evidence must conform to the following rules:
[[Page 65268]]
(i) Name usage. The petition must completely explain, in narrative
form, the manner in which the name is used for the area covered by the
proposed AVA.
(ii) Source of name and name evidence. The name and the evidence in
support of it must come from sources independent of the petitioner.
Appropriate name evidence sources include, but are not limited to,
historical and modern government or commercial maps, books, newspapers,
magazines, tourist and other promotional materials, local business or
school names, and road names. Whenever practicable, the petitioner must
include with the petition copies of the name evidence materials,
appropriately cross-referenced in the petition narrative. Although
anecdotal information by itself is not sufficient, statements taken
from local residents with knowledge of the name and its use may also be
included to support other name evidence.
(2) Boundary evidence. The petition must explain in detail the
basis for defining the boundary of the proposed AVA as set forth in the
petition. This explanation must have reference to the name evidence and
other distinguishing features information required under this section.
In support of the proposed boundary, the petition must outline the
commonalities or similarities within that boundary and must explain
with specificity how those elements are different in the adjacent areas
outside that boundary.
(3) Distinguishing features. The petition must provide, in
narrative form, a description of the common or similar features of the
proposed AVA affecting viticulture that make it distinctive. The
petition must also explain with specificity in what way these features
affect viticulture and how they are distinguished viticulturally from
features associated with adjacent areas outside the proposed AVA
boundary. For purposes of this section, information relating to
distinguishing features affecting viticulture includes the following:
(i) Climate. Temperature, precipitation, wind, fog, solar
orientation and radiation, and other climate information;
(ii) Geology. Underlying formations, landforms, and such
geophysical events as earthquakes, eruptions, and major floods;
(iii) Soils. Soil series or phases of a soil series, denoting
parent material, texture, slope, permeability, soil reaction, drainage,
and fertility;
(iv) Physical features. Flat, hilly, or mountainous topography,
geographical formations, bodies of water, watersheds, irrigation
resources, and other physical features; and
(v) Elevation. Minimum and maximum elevations.
(4) Maps and boundary description--(i) Maps. The petitioner must
submit with the petition, in an appropriate scale, the U.S.G.S. map(s)
showing the location of the proposed AVA. The exact boundary of the AVA
must be prominently and clearly drawn on the maps without obscuring the
underlying features that define the boundary line. U.S.G.S. maps may be
obtained from the U.S. Geological Survey, Branch of Distribution. If
the map name is not known, the petitioner may request a map index by
State.
(ii) Boundary description. The petition must include a detailed
narrative description of the proposed AVA boundary based on U.S.G.S.
map markings. This description must have a specific beginning point,
must proceed unbroken from that point in a clockwise direction, and
must return to that beginning point to complete the boundary
description. The boundary description must refer to easily discernable
reference points on the U.S.G.S. maps. The proposed AVA boundary
description may rely on any of the following map features:
(A) State, county, township, forest, and other political entity
lines;
(B) Highways, roads (including unimproved roads), and trails;
(C) Contour or elevation lines;
(D) Natural geographical features, including rivers, streams,
creeks, ridges, and markedelevation points (such as summits or
benchmarks);
(E) Human-made features (such as bridges, buildings, windmills, or
water tanks); and
(F) Straight lines between marked intersections, human-made
features, or other map points.
(b) AVAs within AVAs. If the petition proposes the establishment of
a new AVA entirely within, or overlapping, an existing AVA, the
evidence submitted under paragraph (a) of this section must include
information that both identifies the attributes of the proposed AVA
that are consistent with the existing AVA and explains how the proposed
AVA is sufficiently distinct from the existing AVA and therefore
appropriate for separate recognition. If the petition proposes the
establishment of a new AVA that is larger than, and encompasses, all of
one or more existing AVAs, the evidence submitted under paragraph (a)
of this section must include information addressing whether, and to
what extent, the attributes of the proposed AVA are consistent with
those of the existing AVA(s). In any case in which an AVA would be
created entirely within another AVA, whether by the establishment of a
new, larger AVA or by the establishment of a new AVA within an existing
one, the petition must dispel any apparent inconsistency or explain why
it is acceptable. When a smaller AVA has name recognition and features
that so clearly distinguish it from a larger AVA that surrounds it, TTB
may determine in the course of the rulemaking that it is not part of
the larger AVA and that wine produced from grapes grown within the
smaller AVA would not be entitled to use the name of the larger AVA as
an appellation of origin or in a brand name.
(c) Modification of an existing AVA--(1) Boundary change. If a
petition seeks to change the boundary of an existing AVA, the
petitioner must include with the petition all relevant evidence and
other information specified for a new AVA petition in paragraphs (a)
and (b) of this section. This evidence or information must include, at
a minimum, the following:
(i) Name evidence. If the proposed change involves an expansion of
the existing boundary, the petition must show how the name of the
existing AVA also applies to the expansion area. If the proposed change
would result in a decrease in the size of an existing AVA, the petition
must explain the extent to which the AVA name does not apply to the
excluded area.
(ii) Distinguishing features. The petition must demonstrate that
the area covered by the proposed change has, or does not have,
distinguishing features affecting viticulture that are essentially the
same as those of the existing AVA. If the proposed change involves an
expansion of the existing AVA, the petition must demonstrate that the
area covered by the expansion has the same distinguishing features as
those of the existing AVA and has different features from those of the
area outside the proposed, new boundary. If the proposed change would
result in a decrease in the size of an existing AVA, the petition must
explain how the distinguishing features of the excluded area are
different from those within the boundary of the smaller AVA. In all
cases the distinguishing features must affect viticulture.
(iii) Boundary evidence and description. The petition must explain
how the boundary of the existing AVA was incorrectly or incompletely
defined or is no longer accurate due to new evidence or changed
circumstances, with reference to the name evidence and distinguishing
features of the existing
[[Page 65269]]
AVA and of the area affected by the proposed boundary change. The
petition must include the appropriate U.S.G.S. maps with the proposed
boundary change drawn on them and must provide a detailed narrative
description of the changed boundary.
(2) Name change. If a petition seeks to change the name of an
existing AVA, the petition must establish the suitability of that name
change by providing the name evidence specified in paragraph (a)(1) of
this section.
Sec. 9.13 Initial processing of AVA petitions.
(a) TTB notification to petitioner of petition receipt. The
appropriate TTB officer will acknowledge receipt of a submitted
petition. This notification will be in a letter sent to the petitioner
within 30 days of receipt of the petition.
(b) Acceptance of a perfected petition or return of a deficient
petition to the petitioner. The appropriate TTB officer will perform an
initial review of the petition to determine whether it is a perfected
petition. If the petition is not perfected, the appropriate TTB officer
will return it to the petitioner without prejudice to resubmission in
perfected form. If the petition is perfected, TTB will decide whether
to proceed with rulemaking under Sec. 9.14 and will advise the
petitioner in writing of that decision. If TTB decides to proceed with
rulemaking, TTB will advise the petitioner of the date of receipt of
the perfected petition. If TTB decides not to proceed with rulemaking,
TTB will advise the petitioner of the reasons for that decision.
(c) Notice of pending petition. When a perfected petition is
accepted for rulemaking, TTB will place a notice to that effect on the
TTB Web site.
Sec. 9.14 AVA rulemaking process.
(a) Notice of proposed rulemaking. If TTB determines that
rulemaking in response to a petition is appropriate, TTB will prepare
and publish a notice of proposed rulemaking (NPRM) in the Federal
Register to solicit public comments on the petitioned-for AVA action.
(b) Final action. Following the close of the NPRM comment period,
TTB will review any submitted comments and any other available relevant
information and will take one of the following actions:
(1) Prepare a final rule for publication in the Federal Register
adopting the proposed AVA action, with or without changes;
(2) Prepare a notice for publication in the Federal Register
withdrawing the proposal and setting forth the reasons for the
withdrawal. Reasons for withdrawal of a proposal must include at least
one of the following:
(i) The extent of viticulture within the proposed boundary is not
sufficient to constitute a grape-growing region as specified in Sec.
9.11(a); or
(ii) The name, boundary, or distinguishing features evidence does
not meet the standards for such evidence set forth in Sec. 9.12; or
(iii) The petitioned-for action would be inconsistent with one of
the purposes of the Federal Alcohol Administration Act or any other
Federal statute or regulation or would be otherwise contrary to the
public interest;
(3) Prepare a new NPRM for publication in the Federal Register
setting forth a modified AVA action for public comment; or
(4) Take any other action deemed appropriate by TTB.
Sec. 9.22 [Amended]
7. Section 9.22 is amended by adding a sentence at the end of
paragraph (a) to read as follows: ``For purposes of part 4 of this
chapter, `Augusta' is a term of viticultural significance.''
Sec. 9.23 [Amended]
8. Section 9.23 is amended by adding a sentence at the end of
paragraph (a) to read as follows: ``For purposes of part 4 of this
chapter, `Napa' and `Napa Valley' are terms of viticultural
significance.''
Sec. 9.24 [Amended]
9. Section 9.24 is amended by adding a sentence at the end of
paragraph (a) to read as follows: ``For purposes of part 4 of this
chapter, `Chalone' is a term of viticultural significance.''
Sec. 9.25 [Amended]
10. Section 9.25 is amended by adding a sentence at the end of
paragraph (a) to read as follows: ``For purposes of part 4 of this
chapter, `San Pasqual' and `San Pasqual Valley' are terms of
viticultural significance.''
Sec. 9.26 [Amended]
11. Section 9.26 is amended by adding a sentence at the end of
paragraph (a) to read as follows: ``For purposes of part 4 of this
chapter, `Guenoc' and `Guenoc Valley' are terms of viticultural
significance.''
Sec. 9.27 [Amended]
12. Section 9.27 is amended by adding a sentence at the end of
paragraph (a) to read as follows: ``For purposes of part 4 of this
chapter, `Lime Kiln Valley' is a term of viticultural significance.''
Sec. 9.28 [Amended]
13. Section 9.28 is amended by adding a sentence at the end of
paragraph (a) to read as follows: ``For purposes of part 4 of this
chapter, `Santa Maria Valley' is a term of viticultural significance.''
Sec. 9.29 [Amended]
14. Section 9.29 is amended by adding a sentence at the end of
paragraph (a) to read as follows: ``For purposes of part 4 of this
chapter, `Sonoma' and `Sonoma Valley' are terms of viticultural
significance.''
Sec. 9.30 [Amended]
15. Section 9.30 is amended by adding a sentence at the end of
paragraph (a) to read as follows: ``For purposes of part 4 of this
chapter, `North Coast' is a term of viticultural significance.''
Sec. 9.31 [Amended]
16. Section 9.31 is amended by adding a sentence at the end of
paragraph (a) to read as follows: ``For purposes of part 4 of this
chapter, `Santa Cruz' and `Santa Cruz Mountains' are terms of
viticultural significance.''
Sec. 9.32 [Amended]
17. Section 9.32 is amended by revising the sentence at the end of
paragraph (a) to read as follows: ``For purposes of part 4 of this
chapter, `Carneros' and `Los Carneros' are terms of viticultural
significance.''
Sec. 9.33 [Amended]
18. Section 9.33 is amended by adding a sentence at the end of
paragraph (a) to read as follows: ``For purposes of part 4 of this
chapter, `Fennville' is a term of viticultural significance.''
Sec. 9.34 [Amended]
19. Section 9.34 is amended by adding a sentence at the end of
paragraph (a) to read as follows: ``For purposes of part 4 of this
chapter, `Finger Lakes' is a term of viticultural significance.''
Sec. 9.35 [Amended]
20. Section 9.35 is amended by adding a sentence at the end of
paragraph (a) to read as follows: ``For purposes of part 4 of this
chapter, `Edna Valley' is a term of viticultural significance.''
Sec. 9.36 [Amended]
21. Section 9.36 is amended by adding a sentence at the end of
paragraph (a) to read as follows: ``For purposes of part 4 of this
chapter, `McDowell Valley' is a term of viticultural significance.''
[[Page 65270]]
Sec. 9.37 [Amended]
22. Section 9.37 is amended by adding a sentence at the end of
paragraph (a) to read as follows: ``For purposes of part 4 of this
chapter, `Shenandoah', `Shenandoah Valley', and `California Shenandoah
Valley' are terms of viticultural significance.''
Sec. 9.38 [Amended]
23. Section 9.38 is amended by adding a sentence at the end of
paragraph (a) to read as follows: ``For purposes of part 4 of this
chapter, `Cienega' and `Cienega Valley' are terms of viticultural
significance.''
Sec. 9.39 [Amended]
24. Section 9.39 is amended by adding a sentence at the end of
paragraph (a) to read as follows: ``For purposes of part 4 of this
chapter, `Paicines' is a term of viticultural significance.''
Sec. 9.40 [Amended]
25. Section 9.40 is amended by adding a sentence at the end of
paragraph (a) to read as follows: ``For purposes of part 4 of this
chapter, `Leelanau' and `Leelanau Peninsula' are terms of viticultural
significance.''
Sec. 9.41 [Amended]
26. Section 9.41 is amended by adding a sentence at the end of
paragraph (a) to read as follows: ``For purposes of part 4 of this
chapter, `Lancaster Valley' is a term of viticultural significance.''
Sec. 9.42 [Amended]
27. Section 9.42 is amended by adding a sentence at the end of
paragraph (a) to read as follows: ``For purposes of part 4 of this
chapter, `Cole Ranch' is a term of viticultural significance.''
Sec. 9.43 [Amended]
28. Section 9.43 is amended by adding a sentence at the end of
paragraph (a) to read as follows: ``For purposes of part 4 of this
chapter, `Rocky Knob' is a term of viticultural significance.''
Sec. 9.44 [Amended]
29. Section 9.44 is amended by adding a sentence at the end of
paragraph (a) to read as follows: ``For purposes of part 4 of this
chapter, `Solano Co