diff --git a/cue/tests/functional/api/test_policy.py b/cue/tests/functional/api/test_policy.py
new file mode 100644
index 00000000..5cd38ef3
--- /dev/null
+++ b/cue/tests/functional/api/test_policy.py
@@ -0,0 +1,52 @@
+# -*- coding: utf-8 -*-
+# Copyright 2015 Hewlett-Packard Enterprise Development Company, L.P.
+#
+#    Licensed under the Apache License, Version 2.0 (the "License"); you may
+#    not use this file except in compliance with the License. You may obtain
+#    a copy of the License at
+#
+#         http://www.apache.org/licenses/LICENSE-2.0
+#
+#    Unless required by applicable law or agreed to in writing, software
+#    distributed under the License is distributed on an "AS IS" BASIS, WITHOUT
+#    WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied. See the
+#    License for the specific language governing permissions and limitations
+#    under the License.
+
+import mock
+from oslo_config import cfg
+
+from cue.common import policy
+from cue.tests.functional import api
+
+
+class TestPolicyHarness(api.APITest):
+    """Test that the API Test Policy harness is only initialized once."""
+
+    @mock.patch('cue.common.policy.init')
+    def setUp(self, mock_policy_init):
+        super(TestPolicyHarness, self).setUp()
+        self.mock_init = mock_policy_init
+
+    def test_assert_init_called_once(self):
+        """Assert that policy is only initialized once in the test harness."""
+        self.assertEqual(1, self.mock_init.call_count)
+
+
+class TestPolicyOsloConfig(api.APITest):
+    """Test the policy harness initialization configuration states."""
+
+    def test_init_with_uninitialized_config_dir(self):
+        self.assertNotIn('config_dir', cfg.CONF)
+
+        try:
+            policy.init()
+        except Exception as e:
+            self.fail("Policy initialization failed with: " + e.message)
+
+    def test_init_with_empty_oslo_config_dir(self):
+        self.CONF.conf(args=[], project='cue')
+        try:
+            policy.init()
+        except Exception as e:
+            self.fail("Policy initialization failed with: " + e.message)
diff --git a/cue/tests/functional/base.py b/cue/tests/functional/base.py
index c87d3fc3..2963dd78 100644
--- a/cue/tests/functional/base.py
+++ b/cue/tests/functional/base.py
@@ -33,7 +33,6 @@ from cue.db.sqlalchemy import api as db_api
 from cue.manage import database
 from cue import objects
 from cue.tests.functional.fixtures import database as database_fixture
-from cue.tests.functional.fixtures import policy
 
 
 test_opts = [
@@ -65,8 +64,7 @@ class FunctionalTestCase(base.BaseTestCase):
         self.flags(state_path='/tmp')
         self.flags(connection="sqlite://", group="database")
 
-        self.CONF = config_fixture.Config()
-        self.useFixture(self.CONF)
+        self.CONF = self.useFixture(config_fixture.Config(cfg.CONF))
 
         self._include_default_fixtures()
 
@@ -128,7 +126,7 @@ class FunctionalTestCase(base.BaseTestCase):
                 sqlite_clean_db=CONF.sqlite_clean_db,
             )
         self.useFixture(DB_CACHE)
-        self.useFixture(policy.PolicyFixture())
+        # self.useFixture(policy.PolicyFixture())
 
     def flags(self, group=None, **kw):
         """Override flag variables for a test."""