FAP meaning

Funding Arrangements Plan (FAP): In nuclear new build practice, the part of a Funded decommissioning Programme (fdp) that sets out how the operator will secure, accumulate, manage and deploy sufficient funds to meet the estimated costs of the decommissioning and waste management activities described in the operator’s Decommissioning and Waste Management Plan (DWMP). The term is used in UK government guidance issued under Part 3 of the Energy Act 2008 (approved funded decommissioning programmes). While “FAP” itself is a guidance term rather than a statutory definition, it is integral to an FDP submitted for approval by the Secretary of State before construction/operation proceeds. Typical FAP content covers: funding vehicle and ring‑fencing (e.g. independent trust/fund); contribution methodologies and schedules during operations; investment and drawdown policies; financial security (e.g. guarantees, surety, insurance); cost estimation, indexation and uncertainty allowances; governance, audit and reporting; triggers for review and top‑up; and protections on early closure or insolvency. Its practical significance is to provide enforceable assurance that decommissioning and radioactive waste management liabilities will be fully financed. Usage and requirements are broadly consistent across England & Wales, Scotland and Northern Ireland under the UK regime. In Ireland, “FAP” is not a defined legislative term; similar funding arrangements may...