The States says the incinerator must be replaced by 2008
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People in Jersey will not be charged to dispose of their rubbish.
There had been plans to make households pay for waste to be taken away to help fund a new plant at Bellozanne.
But the decision has been scrapped because there is permission for money to be used from a States fund set aside for major building projects.
Senator Philip Ozouf says there will be between £60m and £80m from the Capital Spending Fund, if the States agrees plans to replace the plant.
Last week, a claim that one of the burners at Bellozanne could be used beyond 2008 to burn rubbish was dismissed by the committee responsible for waste.