With the future of the Coastal Energy Impact Program (CEIP) in question and with oil and gas leasing and drilling activities in the Gulf of Mexico expected to increase, the question arises as to how energy impacts are to be mitigated. It is concluded that CEIP has helped to mitigate coastal energy impacts. If it is left unfunded, an alternative would be to provide Outer Continental Shelf (OCS) royalties to states to be used for impact prevention and mitigation.