EPA Victoria has approved a development licence application from AGL PTY LTD to extend its ash landfill and leachate storage pond to meet future demand.
The application proposed 6 new landfill cells within the existing ash landfill area at the Loy Yang power station.
The new cells will provide a total of 9,730,000 cubic metres of landfill space. This will allow space for it to operate for approximately 19 years.
EPA Director Infrastructure and Development Advisory Con Lolis said while AGL has been approved to develop develop the landfill cells, it will need an operating licence for each of the six cells before it uses them.
"Our review and assessment of this licence was based the best available science and application of Victoria's Environment Protection Act 2017," Mr Lolis said.
"A decision to allow receipt of ash within the new landfill cell does not mean future cells will automatically be approved, as each decision is based on the latest science and environmental risk assessment."
AGL Loy Yang Pty Ltd will also need to meet a series of development licence milestones, including:
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presenting the detailed design, technical specifications and a construction quality assurance plan after verification by an EPA-appointed landfill auditor
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having the construction independently verified by an EPA-appointed landfill auditor
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putting in place auditor-verified environmental management and monitoring plans that have been approved by EPA
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providing EPA with detailed results of tests demonstrating the landfill can operate within the human and environmental health parameters in their development licence and any future EPA permission.
Mr Lolis said community input was a key part of the assessment process.
"We ran two rounds of consultation as part of our assessment, with 70 applications received for the first round and 14 for the second," Mr Lolis said.
"We granted the licence after careful review of this feedback, as well as rigorous assessment against the best available science and information and requirements of the Environment Protection Act 2017.
"Proposed activities were found to be in line with Victoria's environmental standards."
AGL Loy Yang Pty Ltd will also need to successfully apply for an amendment to its existing operating licence before it can use the new landfill cells and leachate pond.