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Management of the Colorado River: Water Allocations, Drought, and the Federal Role (CRS Report for Congress)

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Release Date Revised April 4, 2024
Report Number R45546
Report Type Report
Authors Stern, Charles V.;Sheikh, Pervaze A.
Source Agency Congressional Research Service
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Summary:

The Colorado River Basin covers more than 246,000 square miles in seven U.S. states (Wyoming, Colorado, Utah, New Mexico, Arizona, Nevada, and California) and Mexico. Pursuant to federal law, the Bureau of Reclamation (part of the Department of the Interior) manages much of the basin's water supplies. Colorado River water is used primarily for agricultural irrigation and municipal and industrial (M&I) uses, but it also is important for power production, fish and wildlife, and recreational uses. In recent years, consumptive uses of Colorado River water have exceeded natural flows, causing an imbalance in the basin's available supplies and competing demands. A drought in the basin dating to 2000 has raised the prospect of water delivery curtailments and decreased hydropower production, among other things. In the future, observers expect that increasing demand for supplies, coupled with the effects of climate change, will increase the strain on the basin's limited water supplies. River Management The Law of the River is the commonly used shorthand for the multiple laws, court decisions, and other documents governing Colorado River operations. The foundational document of the Law of the River is the Colorado River Compact of 1922. Pursuant to the compact, the basin states established a framework to apportion the water supplies between the Upper and Lower Basins of the Colorado River, with the dividing line between the two basins at Lee Ferry, AZ (near the Utah border). The Upper and Lower Basins each were allocated 7.5 million acre-feet (MAF) annually under the Colorado River Compact; an additional 1.5 MAF in annual flows was made available to Mexico under a 1944 treaty. Future agreements and court decisions addressed other issues (including intrastate allocations of flows), and subsequent federal legislation provided authority and funding for federal facilities that allowed users to develop their allocations. A Supreme Court ruling also confirmed that Congress designated the Secretary of the Interior as the water master for the Lower Basin, a role in which the federal government manages the delivery of all water below Hoover Dam. Reclamation and basin stakeholders closely track the status of two large reservoirs—Lake Powell in the Upper Basin and Lake Mead in the Lower Basin—as an indicator of basin storage conditions. Under recent guidelines, dam releases from these facilities are tied to specific water storage levels. For Lake Mead, the first tier of shortage, under which Arizona's and Nevada's allocations would be decreased, would be triggered if Lake Mead's January 1 elevation is expected to fall below 1,075 feet above mean sea level. Improved hydrology in the winter of 2018-2019 decreased the chances of shortage in the immediate future. As of August 2019, Reclamation projected a 43% chance of a shortage condition at Lake Mead by 2025 and a lesser chance of Lake Powell reaching critically low levels Drought Contingency Plans Despite efforts to alleviate future shortages, the basin's hydrological outlook generally has worsened in recent years. After several years of negotiations, in early 2019 Reclamation and the basin states transmitted to Congress additional plans to alleviate stress on basin water supplies. Congress authorized these plans, known as the drought contingency plans (DCPs) for the Upper and Lower Basins, in April 2019 in the Colorado River Drought Contingency Plan Authorization Act (P.L. 116-14). Among other things, the DCPs obligate Lower Basin states to additional water supply cutbacks at specified storage levels (i.e., cutbacks beyond previous curtailment plans), commit Reclamation to additional water conservation efforts, and coordinate Upper Basin operations to protect Lake Powell storage levels and hydropower generation. Despite the success of DCP negotiations, many remain concerned about the basin's long-term water supply outlook, including the need to potential for a compact call between the Lower Basin and Upper Basin that might lead to protracted legal issues. Congressional Role Congress plays a multifaceted role in federal management of the Colorado River Basin. Congress funds and oversees management of basin facilities, including operations and programs to protect and restore endangered species. It has enacted and continues to consider Indian water rights settlements involving Colorado River waters and development of new water storage facilities in the basin. In addition, Congress has approved funding to mitigate water shortages and conserve basin water supplies and has enacted new authorities to combat drought and its effects on basin water users (i.e., the DCPs and other related efforts).