The video has since been removed, but Al has posted a statement about it:
Just wanted to address the negative comment that I made. I'd like to apologize for using the term. By no means did I intend for it to cause any hurt or harm, I now fully realize how insensitive it was. Having grown up within a very diverse punk scene, I have many gay friends. I would never want to hurt anyone's feelings with my comments.
My band and i are any anything but homophobic and our 16 year track record proves that we stand up for human rights and fight against injustices towards all people.
Update: You can see the video which sparked the controversy here.