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By Sean Lengell

Agence France-Presse/Getty Images Majority Leader Harry Reid, Nevada Democrat, lauded the Senate's compromise on the energy bill, which passed 86-8.

Senate Democrats yesterday bowed to Republicans and stripped a proposed tax increase for oil companies from a broad energy bill, clearing the way for passage of the measure that includes the first increase in vehicle gas-mileage standards in 32 years.

The bill, designed to make the nation less dependent on fossil fuels and which calls for greater use of renewable energy sources, passed 86-8 and now heads back to the House for final approval.

"Compromise can be frustrating, it can be exasperating, and it can be maddening," said Senate Majority Leader Harry Reid, Nevada Democrat. "But at the end of the day, compromise can lead to progress — and that is exactly what we have today."

Added Senate Minority Leader Mitch McConnell, Kentucky Republican: "This is a good accomplishment — achieved, as everything good in the Senate always is, by cooperation between the parties."

The White House, which had threatened to veto earlier versions of the bill, is not expected to oppose the latest version that House Speaker Nancy Pelosi, California Democrat, signed off on yesterday.

The compromise was hard fought, as Senate Republicans earlier in the day defeated a similar bill that included a $21.8 billion tax package with incentives for producers and users of renewable energy sources, such as wind, solar and biofuels. The incentives were to be offset by repealing $13.5 billion in tax breaks for five large oil companies, a move that Republicans opposed because they said it would result in higher gasoline and heating-oil prices for consumers.

The measure was rejected 59-40 after Democrats failed to get the 60 votes needed to overcome a Republican filibuster. Sen. Mary L. Landrieu of Louisiana was the lone Democrat to break party ranks.

Mr. McConnell had criticized Democrats for pushing a "massive tax increase" that he said "they knew would never be signed into law."