Months after announcing it was bringing to market the first-ever, hybrid-electric Type A school bus, Collins Bus Corporation said it will also manufacture a liquid propane injection vehicle.

The manufacturer, based in Hutchinson, Kan., is partnering with CleanFUEL USA on developing the propane system on a GM 6.0L gasoline cutaway chassis that meets both EPA and CARB certifications for low emissions. The propane engine also promises 40 to 50 percent increase in fuel economy over diesel. According to the EPA, propane can also lead to lower carbon dioxide, carbon monoxide, nitrogen oxide and hydrocarbon emissions than regular gasoline, and the U.S. Department of Energy’s Web site says propane has resulted in a higher documented engine life of up to two times that of gasoline engines.

Production on the new Collins propane buses will begin this fall.

Recently, the Department of Energy also awarded $35 million of $300 million in total Clean Cities grants to propane projects designed to increase the number of new vehicles and fuel stations nationwide. Of the new vehicles, the DOE said new school buses will be among the 9,000 new propane vehicles that result from projects in Texas and New York, and new propane fueling stations were destined for Indiana, North and South Carolina, and Virginia.

Additional incentives available to school bus fleet operators for the purchase of propane buses as well as paying for fueling station infrastructure include federal tax credits of 50 cents per gallon.

“CleanFUEL USA brings the expertise and a proven system to the Type A school bus market that will have market applications throughout our industry,” said Kent Tyler, president of Collins Bus, in a statement. “We believe it’s imperative to provide our customers with cost-effective solutions that also benefit the environment. This new propane-fueled bus not only accomplishes that goal, but will also be a welcome addition to our recently announced hybrid electric offering.”

Napa Valley Unified School District in Northern California purchased the first Collins hybrid earlier this summer. Durham School Services also recently purchased two new hybrids for operations in the Los Angeles area.