Victoria is pushing ahead with a planned renewables terminal near internationally protected wetlands despite a veto from the federal government.
The two governments are discussing the project, which was rejected by federal Environment Minister Tanya Plibersek over risks to the UN-protected Western Port wetlands site.
"We're working with the Commonwealth to determine the next steps for the Victorian renewable energy terminal," a Victorian government spokesperson said.
The state said it is delivering its 2022 marine and coastal strategy to protect the environment of Western Port Bay.
The hub for the huge towers, blades and turbines needed for Victoria's offshore wind ambitions was planned for the deep-water Port of Hastings, southeast of Melbourne.
The project was rejected over permanent and irreversible risks to the wetlands, which are used by more than 115 bird species, including some that annually migrate to Siberia to breed.
"This is why we've got these international agreements," Biodiversity Council councillor Professor Sarah Bekessy told AAP.
"Because if one little part of their habitat gets destroyed along that flyway then the species is lost."
The site covers about 60,000 hectares with shallow intertidal mudflats, seagrass, saltmarsh, and mangrove habitats that support a wide array of aquatic life.
"For a project that is supposedly to fight climate change, it feels like destroying the planet to save the planet," Prof Bekessy said.
According to the Port of Hastings' latest annual report, the state government has continued to back the project, helping to fund further surveys and technical studies to get it across the line.
"With continued support from the Victorian government, including $36 million of committed grants, Port of Hastings Corporation is progressing the development of options for the Terminal project," the report stated.
While the Victorian government continues to work on its revised state-level environmental requirements, a new federal application for the project is not expected to land on Ms Plibersek's desk until 2025.
A federal government spokesperson said that new application will have to include an amended site footprint and supporting documentation.
