The Safe Harbor provision (1502) for both MTBE and Ethanol-TBE has been deleted from the new energy bill. Below is a summary of additional changes and the fiscal impact on the bill. It is important to note that the costs and savings referred to in this email are a reflection of CBO scoring practices. For example, Energy Savings Performance Contracts cost the government nothing in real dollars, but score at $3 billion under CBO accounting methods. It is also important to note that these are estimated savings. CBO has not yet officially scored this new bill. The specific authorizing changes are as follows: Energy Savings Performance Contracts provision is deleted, for a savings of $3 billion. Corps Operation and Maintenance is deleted for a savings of $145 million. Geothermal royalty incentives, both Near-term production and NEPA reimbursement, are delayed to FY05 for a savings of $24 million. Four oil and gas provisions are delayed for a total savings of $260 million. We have delayed marginal wells, Deep wells/shallow water and Royalty-in-Kind until FY05. We have delayed NPEA reimbursement until FY09. Coal provisions remain unchanged. The uranium sales provision which instructs DOE to transfer uranium to USEC (in accordance to the June, 2002 DOE/USEC Agreement) has been deleted for a savings of $94 million. The provision requiring directed spending of $1.5 billion for research on ultradeep wells is now subject to future appropriations, for a savings of $1.5 billion. Electricity reliability remains unchanged. The third-party finance provision which allows WAPA and SWPA Power Marketing Administrations to go to third parties to finance future expansions to the electricity grid has been delayed to FY05 to avoid a Budget Act Point of Order on FY04 spending. The provision requiring directed spending of $1.1 billion to ameliorate the coastal impact of off-shore oil and gas drilling is now subject to future appropriations for a savings of $1.1 billion. The provision requiring directed spending of $500 million on the Denali Commission for the development of rural electric projects is now subject to future appropriations for a savings of $500 million. The provision authorizing certain lease holders in the Gulf of Mexico to withhold royalties to offset interest owed them by the federal government, as outlined in a DOI Solicitor General’s opinion, has been delayed to FY09 to avoid a Budget Act Point of Order on FY04 spending.