(a) The Project Director or any party in interest may file with the presiding officer a written objection to a preliminary decision within 40 days after the date of issuance of the notice of preliminary decision.

(b) The objection must allege an error of fact or law in the preliminary decision and state specifically and concisely the grounds on which the objection is based.

(c) The objection may include a request for hearing, which must set forth any disputed issues of fact.