Santa Barbara County does not meet federal and state health-based standards for ozone. As a result, the County is making significant efforts to reduce pollution from motor vehicles. The Innovative Technologies Group of the Santa Barbara County Air Pollution Control District conducts clean fuel and energy demonstration programs as a strategy to reduce motor vehicle pollution. One such program, a hybrid bus powered by a combination of electricity provided by onboard batteries and a compressed natural gas engine, is described in this paper. A feasibility study has been completed and construction of demonstration buses will occur in the near future. The feasibility study indicated that, for the inter-city commuter route under consideration, a parallel hybrid drive system is preferred, and offers low engine exhaust emissions and high fuel economy.