WASHINGTON (AP) - President Bush proclaimed victory Thursday as he met with congressional Republicans to savor House passage of major parts of his energy development plan including oil drilling in an Arctic wildlife refuge.

"We showed them last night how we can break Washington gridlock," the president beamed as he and Vice President Dick Cheney entered the Capitol.

Afterward, Cheney noted that not long ago it was said "we'd never get an energy plan out of Congress." But that ignored, for the time being at least, the fact that much of the House-approved legislation faces strong opposition in the Democratic-controlled Senate and that major issues such as electricity deregulation, siting of power plants and power lines and nuclear power development have yet to be addressed.

Senate Republican Leader Trent Lott of Mississippi predicted that a good portion of the House bill would make it through the Senate, although he was less optimistic about the Arctic refuge issue, which Senate Democrats have vowed to block.

"The issue (of refuge drilling) will come up, and we'll have a good debate and a vote," he said.

The House worked past midnight before it passed its energy bill by a 240-189 vote Thursday after a spirited - at times testy - debate over whether to allow oil companies into the pristine Arctic National Wildlife Refuge in northeastern Alaska.

Bush has called the refuge the country's major untapped source of petroleum and insisted drilling can be done there without harming the environment.

In the end, a majority of House members, including a handful of Democrats, agreed and rejected an attempt to strip from the 510-page energy legislation a provision that would allow exploration and drilling in the refuge's 1.5 million acre coastal plain. The vote on that provision was 223-206.

Energy Secretary Spencer Abraham called passage of the bill "a tremendous victory for America, for the economy and for the environment."

"This moves America backward," countered Minority Leader Richard Gephardt of Missouri. He said the bill was "tilted to the energy lobby" with too little to get Americans to conserve energy and too many subsidies for oil, coal, nuclear and other energy producers.

The Senate will not act on the bill until September at the earliest.

The legislation includes:

-Lifting the congressional prohibition against drilling in the Arctic National Wildlife Refuge, giving oil companies access to what is believe to be the biggest domestic oil find since the discovery of the Prudhoe Bay fields not far to the west.

-A package of tax breaks and incentives totally $33.5 billion over 10 years, mostly earmarked to a wide range energy producers including coal, oil, and nuclear industries.

-A modest boost in fuel economy for sport utility vehicles.

-Tax incentives for buying hybrid gasoline-electric cars, solar panels, some high-efficiency appliances and improvements in building energy efficiency.

-An increase in federal money to help low-income families pay heating and cooling bills.

-Expansion of research into clean coal technology.

"This bill is a giant step forward in securing America's energy future," said Rep. Billy Tauzin, R-La., calling it a balance between production and conservation.

But Democrats charged that the ambitious set of tax benefits - broader than the Bush administration has recommended - would force Congress to break its budget agreement and unleash - as Rep. Charles Rangel, D-N.Y., proclaimed - "a budgetary train wreck."

"They're about to build their oil rigs on top of the Medicare and Social Security trust funds," snapped Rep. Edward Markey. D-Mass.

It was the debate over Arctic refuge drilling and automobile fuel economy that produced the most spirited debate.

How can Congress call for drilling in the refuge - an annual haven for millions of migrating birds, thousands of calving caribou, polar bears and other wildlife - and at the same time do little about gas-guzzling sport utility vehicles? asked Rep. Sherwood Boehlert, R-N.Y.

But Boehlert's proposal that would have boosted the fuel economy requirement for SUVs, minivans and pickups to 27.5 miles per gallon, the current requirement for passenger cars, was defeated 269-160.

As for the refuge, Rep. Don Young, R-Alaska, a former trapper and school teacher, angrily denounced some of those who oppose drilling when they have never visited the refuge. Far from a pristine treasure, he said it was a hostile ground made for oil development.

The refuge "was supposed to be drilled, explored for the American people," said Young.

"This is no ordinary land," shot back Rep. David Bonior, D-Mich., who said he had been there. "It's a cathedral of nature, an American heritage. And it's our responsibility to protect it."

Pro-drilling forces have maintained that new drilling technologies will limit the "footprint" of any oil exploration or drilling to no more than 2,000 acres, a tiny fraction of the flat tundra that makes up most area where oil is to be found.