The Andrews government re-opened the inquiry to "get to the bottom" of community health concerns following the 2014 fire as well as to consider rehabilitation of Latrobe Valley's coal mines.

The government has released the Terms of Reference for the inquiry, which will require the board of the inquiry to look at short, medium and long-term rehabilitation options for the state's four coal mines, evaluate whether current rehabilitation bonds adequately reflect the required rehabilitation task and look at whether the 2014 fire led to an increase in deaths.

The re-opening of the inquiry follows the commitment by the Labor government of $30 million in the May budget to implement all recommendations of the 2014 Hazelwood mine fire board of inquiry.

This includes funding a long-term health study in the Latrobe Valley to support the safety and wellbeing of the local community.

“We welcome the re-opening of the Hazelwood inquiry by the Andrews Government and its clear focus on rehabilitation options for each of Victoria’s coal mines. This inquiry could be the start of a new era for the Latrobe Valley," Environment Victoria climate campaign manager Nicholas Aberle said.

Aberle noted that while the first Hazelwood inquiry provided "ample evidence" to show that bringing forward mine rehabilitation requirements would be an effective way of preventing catastrophic mine fire, no specific recommendations were made to enforce this.

“The re-opened Hazelwood inquiry will review what these mines will be at the end of their lives, and the system in place to ensure those goals are delivered," Aberle said.

“As everyone agreed at the first Hazelwood inquiry, the current rehabilitation bonds are much lower than the likely cost of rehabilitation. Raising those bonds at each mine to match their actual liability will be a key task for the inquiry.

“Community expectation needs to be a central criteria for measuring the success of rehabilitation work. It is important the community is given a clear voice in what rehabilitation options are pursued at each coalmine.

“The re-opened inquiry is a great opportunity for the community to ensure that these mines, which take up an enormous area in the Latrobe Valley, don’t end up as useless wastelands. The community deserves something that will provide on-going amenity."

Bernard Teague AO, who led the 2014 inquiry, will again serve as chair. He will be joined by professor emeritus John Catford, executive medical director for the Epworth HealthCare Group, and Anita Roper, a former chief executive of Sustainability Victoria.