AGL has been fined $15,000 for air pollution offences at Liddell Power Station.
The power station exceeded the licensed solid particles concentration limit for emissions from one of the power station's four boilers in August to September 2020.
AGL's Environment Protection Licence sets specific limits for the emission of pollutants from the boiler units.
Along with the fine, the EPA also issued AGL with an official caution for an exceedance on a separate one of the four boiler units around the same period.
Director Regulatory Operations Adam Gilligan said the EPA had required AGL to carry out rectification works to help prevent a similar incident in the future.
"This alleged outcome should serve as a reminder that environmental incidents such as these can come at a significant cost," he said.
"Solid particle emission limits are set for good reason - to help prevent air pollution incidents and possible environmental damage."
"Our licensees have an obligation to comply with their licence conditions. Best practice and cleaner production leads to improved environmental outcomes."
Senior lecturer at the University of Newcastle's School of Medicine and Doctors for the Environment member Ben Ewlad said AGL owed the community an explanation about what went wrong in addition to a commitment that it would not happen again.
"If this was a failure of the fabric filters in the bag house, why was it allowed to continue for two months?," Dr Ewlad said.
"What does the EPA hope to achieve with a $15,000 fine? $150,000 per day would be more of an incentive to pay attention to the stack monitoring."
"Doctors for the Environment Australia agrees with Mr Gilliganthat 'environmental incidents such as these can come at a significant cost' - However $15,000 is insignificant to an operation the size of AGL, Australia's biggest greenhouse gas emitter."
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An AGL spokeswoman said the company had proactively made repairs and modified operations to rectify the cause.
"AGL takes its environmental obligations seriously and works cooperatively with all regulatory agencies to ensure we meet all requirements and engage with the communities where we operate," she said.
"AGL's decarbonisation strategy is clearly set out in its Climate Statement, including the commitment to net zero emissions by 2050 and the commitments to exit coal-fired power."
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