Mount Piper power station is part of a NSW Nature Conservation Council legal challenge, announced on Thursday, July 4.
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The NSW Nature Conservation Council stated it is seeking a judicial review of the NSW Environment Protection Authority's renewal of pollution licences at sites, including Mount Piper power station.
The Portland station is one of three to be challenged by the NSW Nature Conservation Council. The others are in the Hunter and Central Coast regions.
Licence reviews for the stations were carried out in late 2018 and early 2019.
The NSW Nature Conservation Council states the EPA needs to require power stations to do more to prevent pollution.
"When renewing pollution licences, the EPA is legally required to consider measures available to prevent or control pollution, protect the environment and honour the principles of ecologically sustainable development," Nature Conservation Council CEO Kate Smolski said in a statement on Thursday, July 4.
"The EPA appears to have failed to meet this requirement because it did not strengthen emissions standards or require the use of harm-reduction technologies used in other countries."
In a statement, the EPA said it had yet to receive any formal notice of a legal challenge.
"Under the Protection of the Environment Operations Act 1997 once an environment protection licence is issued, the licence remains in force until it is surrendered by the licence holder or is revoked or suspended by the EPA," the organisation stated.
"The licence is not required to be renewed. In accordance with the requirements of the POEO Act the EPA reviews environment protection licences every five years."
The EPA stated a review of coal fired power station air emissions and monitoring was carried out prior to the licence reviews.
"Overall, this review found extensive compliance," it stated.
"The review did find some opportunity for continuous improvement and the EPA is working with all of the state's power station operators to further strengthen licence conditions."
Lithgow-based physician Dr Richard Stiles said he hoped the case would result in tightened emissions controls and better health outcomes for residents.
"A recent study found that communities close to coal-fired power stations suffer an excess of premature deaths, diabetes, and low birth weight babies," he said.
"Renewal of pollution licences should always be used as an opportunity to improve health standards in local communities wherever possible."
The EPA stated that power stations are required to meet legally enforceable conditions outlined in environment protection licences "relating to air, noise, water, waste and land contamination designed to protect the community and the environment".