The Agency is planning to issue a Pollution Prevention and Control (PPC) Permit to Veolia South Downs Ltd for its proposed incinerator at Newhaven.
Planning permission for the incinerator has already been approved by East Sussex County Council.
This PPC permit will set the strict conditions governing the operation of the incinerator, ensuring that public health and the environment are properly protected.
People now have until August 20 to make comments to the Environment Agency which will all be considered before a final decision is made.
The incinerator, also known as an energy recovery facility, uses modern technology to burn waste under highly controlled conditions.
Heat energy in the form of steam is collected and used to generate electricity.
Following extensive public consultation, the Environment Agency first issued a PPC permit for the incinerator in November 2006.
This decision was, however, challenged by a resident on a number of legal grounds, one of which related to the way in which the Environment Agency had considered the issue of emissions of carbon dioxide (CO2).
Although the Environment Agency believed that its decision was substantially correct, it recognised that the accompanying document to explain the decision could have set out the reasons more fully and agreed to the permit being quashed by the High Court in December 2007.
Now the Environment Agency believes that the CO2 emissions from the incinerator have been properly considered, and a full explanation of that consideration has been given; it is therefore minded to issue a new permit.
Any decision the Environment Agency takes will, however, be subject to canvassing the views of the general public.
Only when this has happened and full account has been taken of them, will a final decision be made on whether a permit for the incinerator is appropriate.
The proposed permit and the decision document that explains the permit conditions and how the Environment Agency made its decision are available to view.
Copies can be seen at the Environment Agency office in Chatsworth Road, Worthing, Newhaven Library and Lewes District Council offices.
They can also been seen at http://www.environment-agency.gov.uk/regions/southern.
Comments should be sent to Simon Holbrook at the Environment Agency, Richard Fairclough, House, Knutsford Road, Warrington,WA4 1HG.