Latrobe city councillor and former ALP state candidate Graeme Middlemiss described the EPA's performance during the mine fire as "appalling".

"Any improvement has got to be a plus," he said. "At the time of the actual fire, their response was appallingly slow. They didn't have the equipment or the people who were able to respond quickly to the fire emergency."

Cr Middlemiss said the EPA was now conducting meetings with residents about new air quality monitoring sites, and "that has to be a positive".

Recommendations from the Hazelwood mine fire inquiry included the state having the necessary equipment to "undertake rapid air quality monitoring in any location in Victoria" and to "ensure all emergency response agencies have, or have access to, the capability and resources needed for effective and rapid public communication during an emergency".

An EPA spokeswoman said: "Hazelwood was unprecedented in its prolonged impact on air quality and the community."

She said the EPA devoted its resources throughout the incident to air quality and other environmental monitoring.

"This involved scientific experts, field personnel and a suite of equipment including fixed air-monitoring stations," she said.

"EPA welcomes and accepts the inquiry's recommendations. We are working to improve how we deliver critical information to the community and emergency response agencies during future emergency incidents."

The spokeswoman said the EPA would continue its monitoring in Gippsland "to ensure the local community are confident in the air they are breathing".