Negotiations between the Senate and House to work out a final energy package are expected to take place during July.

Key provisions of the Senate bill include:

OIL/NATURAL GAS

* Direct the president to reduce US oil demand by 1 million barrels a day by 2015.

* Require a federal inventory of oil and natural gas reserves in US offshore waters, including areas where energy exploration is now banned.

* Provide incentives for natural gas production from deep wells in the shallow waters of the Gulf of Mexico.

* Streamline leasing and permitting rules for tar sands, Outer Continental Shelf, oil shale drilling projects.

* Increase capacity of the US emergency oil reserve to 1 billion barrels from the current 700 million barrels.

ELECTRICITY

* Impose reliability operating standards on utilities to protect the US electric grid from blackouts.

* Give Federal Energy Regulatory Commission, not the states, exclusive authority to approve new liquefied natural gas import terminals.

* Boost FERC civil penalties for companies that manipulate electricity and natural gas markets.

* Repeal Public Utility Holding Company Act, which barred certain utility mergers, and give FERC more merger review authority.

CLIMATE CHANGE

* Offer an estimated $2 billion in tax breaks, loans and credits to companies for technology to voluntarily reduce carbon dioxide emissions. Such projects may include coal gasification and carbon sequestration.

ETHANOL

* Require US gasoline refiners to double to 8 billion gallons the amount of ethanol additive used by 2012. California will be exempted from the standard during summer months.

CONSERVATION

* Set standards to reduce energy use by commercial freezers, refrigerators, clothes washers and air conditioning.

* Offer $250 million in rebates for energy efficient appliances over five years.

MISCELLANEOUS

* Offer $200 million a year for technology research to make coal a less-dirty fuel.

* Extend federal insurance for nuclear power plant operators through 2025.