The Bluewaters Power Station Phase I and II proposals were to construct and operate a sub-critical coal-fired base-load power generating facility with a nominal generating capacity of 200 megawatts per phase, four kilometres north east of Collie.

The previous Minister for Environment requested that the Environmental Protection Authority (EPA) inquire into and report on the matter of changing the implementation conditions relating to the Bluewaters Power Station proposal, with particular attention to those relating to air emissions levels, monitoring and control.