Grounds for adjudication by the Secretary.

(a) In accordance with the procedures in this subpart, a person may appeal the following adverse actions for adjudication by the Secretary: (1) The denial of a license; (2) The categorization of a system in a tier; (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) The imposition of a license condition; (5) The denial of a licensee-requested license modification; and (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) The Secretary's action was arbitrary, capricious, or contrary to law; or (2) The action was based on a clear factual error. (c) No appeal is allowed to the extent that there is involved the conduct of military or foreign affairs functions.