We present a new analysis of the rare decay K_L -> pi0 e+ e- taking into account important experimental progress that has recently been achieved in measuring K_L -> pi0 gamma gamma and K_S -> pi0 e+ e-. This includes a brief review of the direct CP-violating component, a calculation of the indirect CP-violating contribution, which is now possible after the measurement of K_S -> pi0 e+ e-, and a re-analysis of the CP conserving part. The latter is shown to be negligible, based on experimental input from K_L -> pi0 gamma gamma, a more general treatment of the form factor entering the dispersive contribution, and on a comparison with the CP violating rate, which can now be estimated reliably. We predict B(K_L -> pi0 e+ e-) = (3.2 +1.2 -0.8) 10^{-11} in the Standard Model, dominated by CP violation with a sizable contribution (~40%) from the direct effect, largely through interference with the indirect one. Methods to deal with the severe backgrounds for K_L -> pi0 e+ e- using Dalitz-plot analysis and time-dependent K_L-K_S interference are also briefly discussed.

24 pages, 6 figures; v2: minor modifications, published version