The Department shall deny an application for a sewage sludge utilization permit if the Department finds that:
(1) The applicant cannot utilize sewage sludge without:
(i) Causing an undue risk to the environment or public health, safety, or welfare; or
(ii) Otherwise violating this Part III, § 9-269, or § 9-270 of this subtitle;
(2) The sewage sludge generator from which the sludge originated has not paid applicable generator’s fees; or
(3) The sewage sludge has been generated in a state in which the laws or application of those laws do not result in the land application of sewage sludge in that state.