Productive Concepts, Inc.

Randolph - It looks like a bus, rides like a bus and sounds like a bus, but a new school bus approved Friday is unlike any other in Indiana. This one runs on electricity.

It is still painted bright yellow, but hybrid green technology promises to save fuel, the environment and money.

"We are particularly proud this is a 'go green' activity," said Dr. Suellen Reed, superintendent of public instruction.

So proud and eager to save fuel and fresh air, Indiana's Department of Education approved new rules making this hybrid bus street legal to carry school children.

There is still a big noisy diesel engine under the hood. You have to look underneath so see what makes this bus different. A big green mechanical monster motor is powered by electricity generated by the bus's brakes. The motor helps get the 15-ton bus moving then turns off at 35 miles an hour, cutting fuel consumption the manufacturer estimates by third.

A Union City company came up with the idea.  

"The biggest question was who's crazy enough to go along with this and make it work," said Rob Lykins, president, Productive Concepts.

Eastern Randolph Schools raised its hand, taking the chance to slash sky-rocketing fuel bills on buses that get only ten miles to the gallon.

New hybrid buses can cost $250,000-$350,000, while retrofitting an existing bus with a hybrid system will cost $40,000-$50,000.

"Do we have all the data yet? Absolutely not. For $30,000 or $40,000, I think we can make it work and I think we can start doing what is right for our children," said Cathy Stephen, Randolph Eastern Schools superintendent.

With Indiana public school buses running 100 million miles a year and fuel prices hovering at $3 a gallon, districts are seeing red. Investing in green technology may put their budgets in the black.

"If this thing works, it's going to have a tremendous impact on school transportation," said Ron Chew, a South Henry school bus driver and president of the Indiana Association of School Bus Drivers. "They've got something that will be on the path to mass production."

Chew is one of seven members of the Department of Education's school bus committee who voted on the new safety standards.

Randolph Eastern Schools got a grant to cover the costs. The bus will run regular routes, and the school district will study the numbers to see if going green is worth the price.

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