(a) An applicant may appeal the denial of a license, or the refusal of the department to issue a license, to the commissioner. In the case of a refusal of the department to issue a license for a major facility which will be in operation on July 1, 1978, and in the case of all refusals to renew a license, where the applicant properly appeals to the commissioner, the license shall be deemed issued or renewed, as the case may be, during the appeal period until the final determination by the commissioner. In all other cases, the license shall be deemed denied during the appeal period.

(b) An applicant may also appeal any special condition or requirement inserted in a license by the department on its own initiative. Such appeal shall be to the commissioner. Such special condition or requirement shall not be valid during the appeal period until final determination by the commissioner.

(c) The method of appeal shall be as follows: A notice stating that the applicant appeals the determination of the department, along with a statement of the facts or reasons why the applicant feels the department's denial, refusal to renew or insertion of special conditions or requirements was not warranted, shall be sent to the commissioner by certified or registered mail. The notice and statement of reasons shall be posted within 15 days of receipt by the applicant of the notice of denial or refusal to renew or license with special conditions or requirements. Upon receipt of such a notice of appeal, the commissioner shall appoint a hearing officer who shall conduct a hearing in accordance with the provisions of the State Administrative Procedure Act and shall provide the commissioner with findings of fact and a recommended determination. The hearing shall be held within 60 days of receipt of the notice of appeal by the commissioner. The hearing officer's report and recommendation shall be transmitted to the commissioner within 30 days of the completion of the record of hearing, including a full transcript. The commissioner's final determination shall be made within 30 days of receipt of the hearing officer's findings of fact and recommendations.

(d) In the case where the department refuses to issue a license or to renew a license due to the refusal of the Department of Environmental Conservation to certify that the applicant meets the standards contained in subdivisions 3 and 8 of section 174 of the Navigation Law, or where the department inserts special conditions or requirements in the license upon the request of the Department of Environmental Conservation, any appeal of such refusal or insertion of special conditions shall be taken to the Commissioner of Environmental Conservation pursuant to procedures established by the Department of Environmental Conservation. In the case of the refusal of the Department of Environmental Conservation to certify that the applicant meets the standards contained in subdivisions 3 and 8 of section 174 of the Navigation Law, for the issuance of a license for a major facility which will be in operation on July 1, 1978 or for all applications to renew a license, where the applicant properly appeals to the Commissioner of Environmental Conservation, the license shall be deemed issued or renewed, as the case may be, during the appeal period until a final determination by the Commissioner of Environmental Conservation. In all other cases, the license shall be deemed denied during the appeal period. Special conditions or requirements inserted in a license upon the request of the Department of Environmental Conservation shall not be valid during the appeal period until final determination by the Commissioner of Environmental Conservation.