The new millennium has brought with it a number of new challenges. Two challenges in particular have significantly impacted the Air Force: 1) rising energy costs and 2) an increased focus on protecting the environment. If the Air Force is to have any hope of dealing with these challenges while at the same time transforming the force and providing sovereign options for the nation, it must execute a well thought out, detailed, short-term and a long-term plan. The Air Force has chosen to develop a plan to engage the energy problem via a two-pronged strategy: ensured energy supply and decreased energy demand. In an effort to analyze the specific aspects of this two-pronged strategy a rigorous literature review and case study were undertaken. Significant findings included the fact that the Air Force is leading the nation in the pursuit of alternate fuels and renewable energy. In addition, plans are in place to continue to grow in these arenas.