Judicial reviews into withdrawn PFI credits for four Yorkshire councils have been granted.
Bradford and Calderdale, and North Yorkshire and City of York Councils have won permission to hold a legal challenge into both PFI projects at the same time.
The Department for Environment, Food and Rural Affairs withdrew PFI credits earlier this year into the two projects, meaning it is possible the two energy from waste facilities may not be financed.
Bradford and Calderdale planned to build a facility on Bowling Lane in Bradford, while North Yorkshire and City of York planned a facility at Allerton near York.
Calderdale Council leader Tim Swift said: “It’s pleasing that the court agrees with us that there is a case to be heard. Defra’s decision left us with no option but to apply for a judicial review.
“The investment in a new waste treatment plant should have led to major savings for council tax payers in both authorities, yet instead we are now left with major costs and the need to find an alternative solution for our waste.”
Bradford Council executive member for environment and sport Andrew Thornton added: “By its withdrawal of the waste PFI credits at the eleventh hour, Defra pulled the rug from under our long-term solution for dealing with the district’s waste in a sustainable way.
“This project would have diverted almost all of our waste away from landfill in the face of rising landfill taxes.”