Abstract
Transit operators now face escalating and unstable operating costs and declining levels of government assistance. In some areas, deregulation has added competitive pressure as well. To maintain transit as a viable solution to the problems of urban mobility a new type of bus, a highly efficient one, is needed. Current transit industry technology has approached the limits of its efficiency, but there are other areas of development which can dramatically improve bus efficiency. These high efficiency buses also yield collateral benefits, particularly in the area of environmental quality enhancement.