The proposed 40 megawatt biomass plant in Manjimup has been served with additional conditions by the state government following a number of public appeals.
Environment minister Donna Faragher today partly allowed 15 public appeals following advice from the Appeals Convenor.
"The key concerns related to the impact of emissions on the environment, agriculture and human health," Mrs Faragher said.
"In light of these concerns, I have applied additional conditions including the requirement to carry out additional monitoring and reporting on emissions."
She added that the details of the conditions will be considered through a consultation process with relevant authorities before a final decision was made on the proposal.
Western Australia Biomass, the company behind the plant, was aiming to deliver by October this year.
The company had originally planned to build the plant in Bridgetown however strong community opposition blocked that proposal.
"It is my expectation that the proponent Western Australia Biomass will convene a community reference group comprising all relevant stakeholders and will operate the plant in accordance with its management commitments," she said.
"In making this decision, the interests of the community have been an important consideration and I am confident that this focus will continue."
She said there were some concerns about the proposed plant's location at Diamond Mill, which has been assessed by the Environmental Protection Authority.
"The EPA assessment found that it is unlikely that its environmental objectives will be compromised so long as the proponent's management commitments and the recommended conditions are implemented," she said.
"Any potential impact on the image of the surrounding agricultural area and on road safety associated with the location of the proposal are matters for consideration through the planning process."
