Sexyfigure206, you've gotten a lot of good advice here.
I'd recommend an honest conversation when you're sober.
I'd tell him your sexuality isn't up for discussion but your and his friendship is! I'd explain to him that you care for him as a friend and that the increasing intimacy is ok with you because of the trust he has earned. I'd also recommend explaining to him that the relationship the two of you share is new ground and feels good when it is happening and he has traveled down this path beside you willingly. He is as culpable as you. Friendships are not contingent on anything but being yourself. That's the great thing about them!
If he's currently uncomfortable with it, you have to accept those boundaries. However, the next time he was drunk and pushing those boundaries, I'd push them as far as I'd want them to go! Don't change for anyone, you are who you should be.