Just read in my issue of "School Bus Fleet", that IC corp.(International Corp.) is developing a diesel/electric hybrid school bus. First delivery is expected nest spring. It will be interesting to see how schoold district mechanics adapt to taking care of these. As it is now school buses (while being the safest mode of transportation) have not been the most reliable and requires quite a bit of repairs.
With the amount of stopping and standing the buses do, I'm sure that even an engine-stop adaptation would represent considerable fuel savings. Especially since most schools are looking for any way to cut some costs. Granted, there will be the up front expenses of the modifications. I guess time will tell.
The thing I'm not sure about is, diesel's use extremtly little fuel while idling so I would think to improve the mpg's your going to need the battery to help alot with powering the vehicle from 0 to it's cruising speed. It's all the start and stops the buses do that kill the mpg's. I would also think that you'd need the ICE running at idle to charge the battery after it gets drained from all the acceleration after starting up from a stop.