The agency had wanted to assess the original advice it was given about the potential health impact. A campaign group of residents opposed the plant.
Operator Viridor said it hopes to start building work next year, with the plant fully operational by mid-2014.
Opponents said they were disappointed the Environment Agency had not imposed tighter restrictions on the incinerator.Environment Agency Wales has said the delayed announcement was "to give the local health board an opportunity to confirm that their original advice on the potential health impacts of incinerators is still valid".
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