ON A 57-40 vote, supporters of the bill failed by three votes to cut off debate on the legislation, which supporters said would increase and diversify energy production and provide farmers an economic boost by expanding use of corn-based ethanol. They needed 60 votes under the Senate's rules to end the debate. The House passed the legislation earlier this week.

"This will not be the last vote on this bill," said Majority Leader Bill Frist, R-Tenn. "We're going to keep voting until we pass it and get it to the president."

Opponents of the $31 billion bill, which included at least six Republicans, waged a frantic campaign to garner enough votes to derail the legislation, arguing it was crafted largely in closed-door Republican negotiations with the House, was too expensive and amounted to a collection of subsidies to special interests.

MCCAIN ASSAILS 'INDUSTRY FAVORS'

The bill has "glaring examples of industry favors," said Sen. John McCain, R-Ariz., one of the six GOP senators strongly opposed to the legislation. He called it a "Thanksgiving turkey" stuffed with goodies for special interests.

Sen. Judd Gregg, R-N.H., objected to the bill's price tag - an estimated $31 billion over 10 years - arguing that the measure exceeds the congressional budget ceiling.

Supporters needed at least 60 votes to overcome the threatened filibuster and the claims of budget violations.

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Ethanol fuels controversy
Nov. 14 -- One of the most controversial provisions of the energy deal would greatly expand the use of ethanol. NBC's Joe Johns reports the bipartisan provision has renewed a long-running controversy.

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Sen. Pete Domenici, R-N.M., the bill's floor leader, said he was confident of support from the majority of senators that would be needed to pass the 1,148-page bill.

"This bill is teetering on the edge of survival right now," said Sen. Charles Schumer, D-N.Y.

Schumer said there were some good things in the bill, but he strongly opposed provisions to mandate use of corn-based ethanol in gasoline nationwide and the bill's handling of MTBE, a gasoline additive contaminating water supplies.

LIABILITY PROTECTION UNDER FIRE

Many Democrats, with five Republicans from New England, vowed to block the bill because it would shield makers of MTBE from product liability lawsuits and give the companies $2 billion over eight years to help them shift away from making the additive as it is phased out.

A provision to double the use of ethanol in gasoline, an economic boon to the Farm Belt states, drew opposition from senators on the East and West coasts.

"This mandate (to use ethanol) is essentially a hidden gas tax," argued Sen. Dianne Feinstein, D-Calif., who said she feared imposing the additive is increasing pump prices in California and causing more smog. About 70 percent of California's gas contains ethanol as the state eliminates MTBE because of water contamination concerns.

The politics, economics of ethanol

But the ethanol issue also is viewed as critical if the bill passes the Senate, bringing in broad support among Democrats and Republicans from farm states.

"This could mean at least a billion dollars in additional income for farmers and for our rural economy," Senate Democratic leader Tom Daschle of South Dakota said Thursday.

Others are bothered by the cost.
Sen. John Kyl, R-Ariz., said he found it curious that the Senate approved $15 billion in tax breaks, the House gave $17 billion, but the compromise worked out in the final bill would provide $23.6 billion. "Guess who lost - the taxpayer," he said.

MANY TAX BREAKS INCLUDED

The bill, mostly written during a couple months of closed-door negotiations between House and Senate Republicans, contains hundreds of items sought by energy lobbyists, including tax breaks for oil, gas, coal and nuclear industries, plus tax credits for renewable energy and conservation.