PORTLAND, Ore. -- Biodiesel fuel could prevent Americans from relying on foreign oil in the future, but some Portland taxpayers expressed dismay when they heard the price the city is paying to fuel its vehicles.

Two years ago, the city of Portland chose to use biodiesel fuel for all of its city diesel vehicles.

"In addition to wanting to use a fuel that was renewable, we're looking to create a market in Oregon where farmers could participate and grow canola, which is the best feed stock possible for biodiesel," said Portland City Commissioner Randy Leonard.

The fire bureau, water bureau and Portland's transportation department all use biodiesel to fuel up.

But it comes at a price, and a high one at that: $7.50 per gallon. The city faces possible budget overruns of nearly $320,000 in biodiesel costs, according to the Portland Tribune newspaper.

"(It's) crazy, absolutely insane," said Michael Lehay, a Portland resident. "Especially with budget cuts and everything else when you can buy it now for $1.70 for gasoline."

Leonard said the Oregon-made biodiesel costs more because it's all produced by local companies.

"I hate to give up on it even though there is a disparity in price," Leonard said. "Because I think in the long term, it establishes an Oregon-based industry."

The city established a contract with Oregon companies to have the fuel created and distributed.

"We shouldn't be fooled by the short-term fix that we get by the cheaper fuel," Leonard said. "We have to do what we're doing now, like with the Oregon-based initiative, to create alternate fuels for the future."

Leonard said he wants to keep things local, but he also realizes something may have to change if things get too expensive. He plans to meet with the companies that produce the biodiesel to either ensure the price doesn't rise any more or possibly find a way to make the price drop. City Paying High Price For Biodiesel