(a) In accordance with the procedures in this subpart, a person may appeal the following adverse actions for adjudication by the Secretary:

1. (1) The denial of a license;
2. (2) The categorization of a system in a tier;
3. (3) The failure to make a final determination on a license grant or denial or a licensee's modification request within the timelines provided in this part;
4. (4) The imposition of a license condition;
5. (5) The denial of a licensee-requested license modification; and
6. (6) The replacement of an existing license with a license granted under § 960.3(a)(1) or termination of an existing license under § 960.3(a)(2).

(b) The only acceptable grounds for appeal of the actions in paragraph (a) of this section are as follows:

1. (1) The Secretary's action was arbitrary, capricious, or contrary to law; or
2. (2) The action was based on a clear factual error.