Policy Backgrounders

Colorado River Water Shortage

April 14, 2023

Insights for What’s Ahead 

Despite recent wet weather in California, the Colorado River water shortage is reaching crisis proportions. The Administration has just released a Supplemental Environmental Impact Statement for Near-term Colorado River Operations which subject to public comment. The failure to act by Upper and Lower Basin states, or the Administration being precluded from imposing a solution if necessary, would have catastrophic consequences for many industries and businesses in the West.

• Up to this point, including during negotiations in January, the Colorado River Compact states have been unable to reach an agreement on reducing allocations of water.

• If the Colorado River Compact states are unable to reach an agreement on reducing water usage, the Administration will impose a solution under the authority of the Interior Secretary to avoid a situation called “Deadpool” in which hydropower dams would be unable to continue generating electricity.

• Under that scenario, mandatory water reductions would likely go into effect this August, unless the action is blocked through litigation.