June 21 (Bloomberg) -- President George W. Bush said the electricity needed to fuel U.S. economic growth will require more nuclear power plants, and his administration will work to ease regulatory hurdles to their construction.

Speaking at the Browns Ferry nuclear facility in Athens, Alabama, which is being restarted after a 22-year shutdown, Bush said the U.S. lags behind other Western industrial nations in using nuclear power. The U.S. gets about 20 percent of its electricity from nuclear plants, compared with about 30 percent for the European Union as a whole.

``Nuclear power is a key component of economic vitality,'' Bush said. ``Nuclear power is prevalent and it's recognized as a necessary power source, not only in the United States but around the world.''

The president announced no new policy initiatives and reiterated his previous proposals to jump start the nuclear industry. He noted that no new nuclear plants have come on line in the country in more than a decade, and there hasn't been a new plant ordered since the 1970s. That is changing, Bush said, because of steps the U.S. is taking to bring down some of the hurdles for nuclear power. He said there are 20 applications for 30 new reactors and construction on the first may begin by 2010.

Bush also cited nuclear power as part of the solution to dealing with global warming.

``Nuclear energy produces no greenhouse gases,'' Bush said. ``If you're interested in cleaning up the air you ought to be for nuclear power.''

The Nuclear Component

Greater reliance on nuclear power has been one of the main components of Bush's energy plan since it was unveiled shortly after he took office in 2001.

The Tennessee Valley Authority in April asked U.S. regulators for permission to resume power production at the Browns Ferry 1 nuclear reactor.

In March 1985, TVA shut the three reactors of Browns Ferry voluntarily after repeated operating problems. Browns Ferry 1, the oldest of the three units, never ran for more than 137 consecutive days. The Nuclear Regulatory Commission approved the restart of Unit 2 in 1991 and Unit 3 in 1995.

Knoxville, Tennessee-based TVA, the largest publicly owned power company, decided in 2002 to spend $1.8 billion to resume operations at the reactor, saying it was cheaper than building new power plants to serve growing demand in the region.

Safety Record

Environmental groups said Bush picked a reactor with a questionable safety record to promote his nuclear agenda.

Browns Ferry ``has a dubious history and can hardly be held up as a model for the industry,'' said Michele Boyd, legislative director of energy policy for Public Citizen, an advocacy group.

U.S. nuclear plants operate under a federal law that offers liability insurance that, in the event of a major accident, makes the government responsible for claims of more than $10 billion. New plants can qualify for regulatory risk insurance if licensing drags on, a production tax credit and loan guarantees.

Bush also made a pitch for his goal, outlined in his 2006 State of the Union address, to end the country's reliance on oil from overseas and increase use of alternative energy sources.

The U.S. Congress, which is debating energy legislation this week, has yet to approve any major measures aimed at heeding Bush's call. To accomplish that target, the president wants lawmakers to approve more research spending on power from solar, wind, nuclear, ethanol and hydrogen.

Congress

Republicans in the Senate today blocked a Democratic- sponsored provision of the energy legislation that would have provided $32.1 billion in tax incentives mostly for renewable energy. Lawmakers also are negotiating raising fuel mileage requirements for automakers. The House is working on a separate bill dealing with energy policy.

Al Hubbard, director of Bush's National Economic Council, yesterday said the White House likes parts of the energy measures Congress is debating, although it has ``concerns about other parts if it.''

The Senate has endorsed Bush's goal of mandating greater use of ethanol by 2022, a later date than the president proposed. ``We wish it were by 2017, as opposed to 2022,'' Hubbard said in a briefing with reporters.

He also said the White House has concerns about how legislation in the House sets new fuel economy requirements for automakers, known as CAFE, standards.

Bush afterward flew to Mobile, Alabama, to headline a fundraiser for Republican Senator Jeff Sessions, who has been a strong supporter of the president's policies, with one exception: immigration. Sessions opposes the plan backed by Bush to overhaul immigration laws to create a guest worker program and provide a path to citizenship for immigrants already in the country illegally.

Bush made a joke about the divide over immigration during his speech, noting that the two men ``have our differences.''

The event raised about $900,000 for Sessions, who is in his second term and will be up for re-election in 2008.

To contact the reporter on this story: Brendan Murray in Athens, Alabama, at brmurray@bloomberg.net

Last Updated: June 21, 2007 19:21 EDT