The Stanley Road Waste Facility will operate as a transfer station only due to health threats.
The Department of Water Environment and Regulation approved a new operating licence on June 27 saying it had removed the disposal of waste within the landfill "for the time being".
"The removal of these conditions was due to capacity of the unlined landfill cell being exhausted," the department's website states.
"The risk assessment determined that the risk to human and environmental health, from continued emission of leachate from the unlined cells, was unacceptable."
Another part of the partially renewed licence includes allowing solid waste and crushed building material to still operate, with minor conditions.
The waste facility was given an Environmental Protection Notice in 2021 asking it to control or abate emissions of leachate from the unlined landfill cells into groundwater.
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According to the department website, the effect of the notice was to prioritise the closure and capping of the unlined cells at the facility.
Since then The City of Bunbury and Shire of Harvey have loaned $6 million to the Bunbury Harvey Regional Council, which manages the waste facility, to help line the cells.
...the risk to human and environmental health, from emissions of leachate from the unlined cells, was unacceptable.
As part of the department approving the current licence it has asked the regional council to provide a "clear plan to address the closure and capping of the landfill cells".
In order for a potential change to the environmental protection notice, the department said it would consider the ongoing impacts of leachate.
The environment protection notice does not impact the recycling activities at the facility or the approval to build the new lined landfill cells.
The renewed licence is advertised on DWER's website and is available for public appeal.
The Stanley Road facility also has a Contaminated Sites classification after investigations found possible PFAS in the groundwater. The council has been investigating the extent of the contamination.
Bunbury Harvey Regional Council has been contacted for comment.