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The Federal Transit Administration (FTA) yesterday announced a final rule requiring transit agencies to develop management plans for assets, such as vehicles, facilities, equipment and other infrastructure.

Under the transit asset management (TAM) rule, each FTA-supported transit provider would be required to inventory and assess the conditions of their assets, develop priorities for investment based on inventory, and establish performance targets to keep assets in a state of good repair.

By requiring agencies to better track and maintain assets, the TAM rule will help agencies cut costs associated with breakdowns, FTA officials said in a press release.

In 2013, for example, agencies reported spending $2.2 billion as a result of mechanical failures.

"We've worked inclusively with our grantees to develop the TAM rule, setting clear requirements for transit agencies to identify and prioritize state of good repair needs," said FTA Acting Administrator Carolyn Flowers. "The good news for both transit operators and the traveling public is that the rule will improve safety and reliability and result in fewer travel delays for passengers."

The rule takes effect in October. Agencies must complete asset management plans within two years and establish preliminary state of good repair performance targets by January 2017. The rule also establishes new reporting requirements to the National Transit Database.

The FTA will provide agencies with technical assistance through guidebooks, webinars, newsletters highlighting TAM case studies, state of good repair roundtables and a "National Transit Institute" course devoted to asset management.