I believe that while the Government should encourage the development of alternative fuels I think that the current technology has been developed enough that private investors should be stepping in and funding these companies since there is profit to be made, I don't believe the Government should be heavily subsidizing them at this time.
Private funding really is the only way to go, if an alternate fuel company ever hopes to succeed on the free markets alone. A government funded start-up is only going to seek more government funding. They would never focus on generating their own profits enough to turn down taxpayer money.
I think that they should find the funds on their own. The government is tapped out to the max. The people need to have the budget cut back to a point of actually feeling it. This would only push the budget further than it needs to be, the fuel supply issue can be dealth with in 5 years or so,right now its not good if it happens.
I do not think that alternative fuel companies should be funded by the government. I think that doing such a thing would be unfair to the private sector and tax paying Americans. If a company want to look into alternative fuel choices, they should be able to be ran like any other company.