The Department shall deny an application for a Sewage Sludge Utilization Permit if the Department finds that: The person applying for a Sewage Sludge Utilization Permit cannot utilize sewage sludge without causing an undue risk to the environment or the public health, safety, or welfare as may be determined by the Department; The person applying for a Sewage Sludge Utilization Permit is violating Environment Article, §§9-230—9-251, 9-269, or 9-270, Annotated Code of Maryland; The sewage sludge generator from which the sewage sludge was generated has not paid the applicable generator’s fee specified in Regulation .08 of this chapter; or The sewage sludge has been generated in a state in which the laws or the application of those laws do not result in the land application of sewage sludge in that state. The Department may deny an application for a Sewage Sludge Utilization Permit if the Department finds that: The sewage sludge generator from which the sewage sludge was generated is not in compliance with the sampling and testing requirements specified in Regulation .06 of this chapter; The sewage sludge generator from which the sewage sludge was generated is not in compliance with the record-keeping and reporting requirements specified in Regulation .07 of this chapter; The person applying for a Sewage Sludge Utilization Permit has insufficient resources to meet the performance bond or other financial securities requirements of the Sewage Sludge Utilization Permit; The person applying for a Sewage Sludge Utilization Permit has failed to submit the applicable Sewage Sludge Utilization Permit Application fee; The person applying for a Sewage Sludge Utilization Permit has failed to submit information requested by the Department; or For any other good cause as determined by the Department. The Department shall send to the local health official and the local soil conservation district a notice of the denial of an application in the county for a Sewage Sludge Utilization Permit.