Offered allowances are sold until the allowance supply is depleted, bids are used up, or the minimum price for the next set of offered allowances exceeds the purchase price of the next bid. EPA returns proceeds and unsold allowances from the auctioning of reserve allowances on a pro rata basis to those units from which EPA originally withheld allowances to create the Special Allowance Reserve. Proceeds from the sale of offered allowances will be returned to private allowance holders that contributed the allowances to the auctions. EPA likewise returns payment from unsuccessful bids and allowances from unsuccessful offers. From the year 2000 onward, organizations and individuals are be able to purchase spot allowances at the direct sales.
Conditional approval is considered and granted on applications based on order of receipt.
Upon approval, allowances are reserved under the name of the applicant. Payment defaults will result in a withdrawal of purchase requests. EPA transfers allowances only after full payment is received. If the allowances in the direct sales have not been exhausted by January 30, they are offered at the next year's auctions. Similar to the auction program, EPA apportions proceeds from the direct sale of allowances on a pro rata basis to those units from which EPA withheld allowances to create the Special Allowance Reserve.