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RALEIGH (AP) - A federal judge ordered Duke Energy Corp. on Tuesday to undergo a full environmental assessment of a coal-fired generator under construction in western North Carolina, giving the company 60 days to comply with regulations initially ignored by the Bush administration.

The federal judge allowed Duke to continue building its Cliffside unit but dismissed the company's argument that it doesn't need a full assessment to ensure it is using the best-available technology.

U.S. District Court Judge Lacy Thornburg wrote that ongoing construction without the review could result in "emissions capable of causing serious health problems, or the shut down of construction and/or in costly retrofitting that would result in unnecessary rate increases."

Environmental groups, which led the lawsuit, hailed the decision and said it could serve as precedent to alter the building plans of perhaps a dozen U.S. power plants that began construction during a three-year period.

"This is the cleanest, purest legal victory we could have," said John Walke, director of the clean air program at the Natural Resources Defense Council, which is part of the lawsuit.

"We think a halt to the plant was warranted based on the violation, but a 60-day period to come into compliance will effectively require the relief we were seeking - mainly to protect the public."

Duke said it began construction of its new unit at the end of January, just after receiving a permit from North Carolina regulators.

But just over a week later, a federal judge determined that the U.S. Environmental Protection Agency violated the Clean Air Act by scrapping a policy that required utilities to install the best available technology to capture mercury - a neurotoxin that can damage developing brains of fetuses and very young children.

The Charlotte-based utility argued that it was not subject to the best-technology assessment process. It did agree to provide its own review of best-available technology, but environmentalists balked at the proposal, saying a full inspection was necessary.

Thornburg sided with the environmentalists and said the Clean Air Act laws apply to the unit. And he gave Duke 60 days to complete the process with a review from the Division of Air Quality of the North Carolina Department of Environmental and Natural Resources.

Duke said it will comply with the court's requirement to initiate the review process, but it also plans to appeal the decision.

"In permitting and constructing the project, Duke Energy has not only complied with all state and federal laws and standards, but has gone beyond what is required," company spokeswoman Marilyn Lineberger said in a statement. She said the project is already 20 percent complete.

Duke is building the $2.4 billion, 800-megawatt unit at its Cliffside Steam Station, about 50 miles west of Charlotte. When the new generator opens in 2012, Duke will close four of its five older coal plants at the site.

The five coal-fired units at Cliffside emit about 157 pounds of mercury a year.

Duke officials have said the new generator will use equipment that will reduce mercury by 90 percent, but opponents have argued that technology exists that can reduce emissions by up to 98 percent.