OLYMPIA — A sharply divided Washington House gave Democratic Gov. Christine Gregoire a big victory yesterday, approving her main economic-development project, a billion-dollar Life Sciences Discovery Fund for biomedical research.

After hours of debate and a war of words over cloning, constitutionality and delegation of the Legislature's powers, the vote was 53 to 40, just three more than the bare minimum.

The tense debate and near-party-line vote was in stark contrast to the bipartisan love fest in the Senate last month when the original bill passed 45-4.

Rep. Jeff Morris, D-Anacortes, the lead House sponsor, had taken out the Senate Republicans' ban on cloning, hoping that volatile issue will be clarified in separate legislation on ethics and stem-cell research.

He said in an interview after the vote that he'll propose that the Senate adopt California standards against human cloning. He said he's optimistic the two chambers will agree on a compromise plan this week.

It was a big victory for Gregoire, who has made biotech a signature issue of her first legislative session. She says the state can become a world leader in health and farm research, finding cures to health problems of its citizens and creating 20,000 or more new high-paying jobs.

"The governor is very pleased," spokesman Steve Pierce said. "This has been one of her priorities from Day One in terms of what it can do as an engine for economic development."

He said Gregoire will work closely with lawmakers to craft a good compromise in the waning days of the session.

The governor's idea is to use $350 million in bonus money that Washington is getting from the tobacco industry under terms of a $200 billion settlement she negotiated when she was attorney general.

The money will arrive in $35 million annual payments, beginning in 2008. The seed money is expected to leverage government and private-sector matching grants that would build the fund to $1 billion, the governor says.

The fund would be administered by trustees appointed by the governor and confirmed by the Senate. The House version of the plan says annual contributions to the fund wouldn't be automatic, as Gregoire and the Senate proposed, but would go through the regular appropriations process.

But Republicans raised warning flags.

Rep. Glenn Anderson, R-Fall City, and Rep. Skip Priest, R-Federal Way, both original sponsors, said the legislation is fuzzy about the scope of research, ignores ethical concerns, and doesn't say how it will be financed and governed, whether proper disclosure will be made, whether it is constitutional and whether taxpayers will get a good return on investment.

Republican Leader Bruce Chandler of Granger, Rep. Jim Clements, R-Selah, and others strenuously objected to the Legislature delegating its power of appropriation and oversight to an unelected board.

The bill passed with votes from 52 Democrats and Republican Shirley Hankins. It was opposed by 37 Republicans and three Democrats: Maralyn Chase, Mark Miloscia and Geoff Simpson.