Recycling facilities across Victoria will be audited after a massive blaze ripped through a Melbourne plant, forcing the evacuation of dozens of homes and leaving some people in hospital.
The state government announced the taskforce on Saturday after the blaze took hold at the Coolaroo plant earlier in the week.
The Environment Protection Authority, Metropolitan Fire Brigade, Country Fire Authority and Emergency Management Victoria will make up the joint taskforce.
Environment minister Lily D'Ambrosio also announced an interim waste management policy that will force facilities to better store materials to minimise health and environment risks.
"We are taking immediate measures to ensure better protections for Victorians and our environment," Ms D'Ambrosio said.
The policy will stay in place for 12 months until a permanent solution is found.
The current Environmental Protection Act is currently before parliament and will expand the authority's powers.
Ms D'Ambrosio said the bill would "clarify" the role of the EPA as a "protector of human health and the environment".
The Coolaroo blaze was brought under control on Saturday, but more than 140 firefighters are still at the scene, including interstate crews.
Victorian Premier Daniel Andrews announced the fire was under control after visiting the site on Saturday.
"There was a strategy put in place yesterday afternoon to increase the foam that's been put on this fire, that's been successful," Mr Andrews told reporters.
The premier said it was a "fantastic outcome", and thanked firefighters from the ACT, South Australia and New South Wales, as well as other emergency services, for their support.
Opposition emergency services spokesman Brad Battin said the government needed to ensure recycled material wasn't stockpiled to prevent similar fires from happening again.
"We need to ensure we have a plan that reduces the stockpiling that's there," he said.
Four people, including a four-year-old girl, have been hospitalised due to toxic smoke from the fire which started on Thursday, while 15 people were assessed by paramedics.
Upfield train station and 115 homes in the nearby suburb of Dallas were evacuated on Thursday night when air quality levels dropped to very poor.
The plant - which also caught fire in February, June and on Wednesday afternoon - was due to be inspected on Thursday over its fire management practices, Victoria's Environment Protection Authority said.
The cause of the blaze is not yet known, but the MFB said it was not related to this week's earlier fire.
SKM Recycling declined to comment because the incident was under investigation.