A tribunal will not force Coliban Water to follow new rules for releasing treated wastewater into the Campaspe River while it appeals an Environmental Protection Agency decision.
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Coliban has persuaded state planning umpire the Victorian Civil and Administrative Tribunal to temporarily stick with old rules for the Kyneton Water Reclamation Plant.
It comes less than a month after the EPA revealed new licence conditions for the plant, which treats from Kyneton, Malmsbury, Trentham and Tylden.
The EPA wanted "more stringent" parameters for how water could be discharged and new arrangements to measure water flow in the river, the regulator said when it revealed the new rules.
Coliban has now told the tribunal there are serious questions to resolve before the new conditions can be imposed, including overflow rates, water dilution, how to measure compliance and the evidence the EPA used to reach its licence decision.
It has also warned it might not be able to comply with some licence conditions unless it makes "significant" investment over the medium to long term.
The EPA has told the tribunal it does not oppose using the old rules while the matter was settled, and did not expect an immediate risk to human health or the environment.
Appeal in customers' 'best interest'
The dispute has unfolded in the wake of a $20 million upgrade to the Kyneton plant but disputes over its operations back further.
The facility has previously discharged water that failed to meet quality requirements into the river, sparking criticism from farmers worried about their operations.
Coliban has not denied there had been issues in the past but has stood behind the recent upgrade's environmental credentials, including in a public statement issued in mid-December.
In it, the company said the upgrades had slashed the amount of phosphorus entering the river with a new treatment facility, extra water storage and 14km of pipes delivering recycled water for agricultural use.
"We believe it is in the best interest of our customers to exercise our right to appeal in VCAT," managing director Damian Wells said in the statement.
VCAT expects to hear evidence on the licence decision at a later date.
Tom O'Callaghan
I grew up in Bendigo and I want to tell your stories.
I grew up in Bendigo and I want to tell your stories.
