The Senate approved comprehensive energy legislation late Thursday, after adopting a bipartisan compromise that would boost automobile fuel economy standards.

But senators rejected a package of energy tax incentives and abandoned a renewable energy mandate, handing Democrats two high- profile defeats.

The 65-27 vote came after a delay of several hours, as Democrats fought off a last-minute lobbying blitz by the auto industry and tried to round up senators who had already left the building, a leadership aide said.

The bill (HR 6) would mandate the use of 36 billion gallons of ethanol by 2022, create new efficiency standards for appliances and federal buildings and promote new energy technologies.

It also would ban price gouging during federal emergencies and subject the Organization of Petroleum Exporting Countries to U.S. antitrust laws — provisions that have drawn White House veto threats.

An amendment by Alaska Republican Ted Stevens to increase Corporate Average Fuel Economy (CAFE) standards for all passenger cars and light trucks by roughly 40 percent by 2020, to a fleetwide average of 35 miles per gallon, smoothed the way for passage. The key to the amendment’s success was an agreement to drop language requiring the standards to rise by 4 percent annually after 2020.

Stevens briefly praised the deal during a news conference and then proceeded to the Senate floor, where it was adopted by voice vote moments later. It was a shockingly quick resolution to an issue that has stymied senators for more than a decade, and it caught everyone by surprise — including several key negotiators who were still speaking in hopeful tones when news of the vote filtered back to the news conference.

But the compromise on CAFE standards followed a defeat for Democrats on a $32.1 billion tax package and a surrender on a proposal to require utilities to generate 15 percent of their power from renewable fuels by 2020.

Senators rejected, 57-36, a motion to cut off debate on the tax package, which would have raised taxes on oil and gas production to fund new incentives for renewables and other energy technologies.

Senate Majority Leader Harry Reid, D-Nev., said the procedural delays on the energy taxes were designed to protect wealthy oil companies. They would have surrendered just $34 billion out of $1 trillion in profits during the next decade under the package, he argued. “They do pretty well here on Capitol Hill,” he said.

The energy bill has been the subject of intense lobbying and advertising campaigns by oil and gas companies, environmentalists and other groups. But no industry has been more aggressive than the automakers, which have run newspaper advertisements touting a weaker CAFE proposal.

“See the tire tracks?” said Larry E. Craig, R-Idaho, who turned and pointed to his back when asked about pressure from the auto industry. Craig publicly abandoned his longstanding opposition to new CAFE mandates earlier this year.

Democrats insisted they had 60 votes to adopt the latest draft of Energy and Natural Resources Chairman Jeff Bingaman’s renewable electricity mandate. But Reid never filed the cloture petition needed to override Republican objections — a decision he later said he regretted.

Environmentalists already are pinning their hopes on the House, which could include a similar mandate in its bill.

Bingaman, a New Mexico Democrat, also said the $28.6 billion tax package would remain in play, suggesting “the House is still going to do what they’re going to do.”

The House Ways and Means Committee approved legislation this week that includes $16 billion in energy tax incentives. While smaller than the Senate package, it also would boost taxes on the oil and gas industry.

Senate Republicans objected to the higher taxes on the oil and gas industry.

“They’re going to raise the cost of gasoline at the pump for American consumers,” said Jon Kyl, R-Ariz.

Bart Jansen and Kathleen Hunter contributed to this story.

First posted June 21, 2007 11:56 p.m.