The constant rise in U.S. oil imports poses a serious threat to our nation's energy security. The transportation sector, which itself consumes two thirds of the U.S.'s oil requirement, has the capability of offsetting these oil imports by incorporating the use of alternative fuel - specifically methanol. This paper examines a few important aspects of alternative fuel policy. The first discussion, issues which have challenged current policy proceedings, leads into a discussion on the effect that promotional policy may have on the nation's energy security. Long-term benefits are anticipated, but short-term drawbacks are unavoidable. The government must play a role in order to bring about benefits associated with alternative fuel policy, so concluding discussion reveals additional provisions which are needed.