Arizona Business Leaders Join Mayors in Push to Protect Colorado River Water Allocation

Business Community Steps Up as Federal Cutbacks Loom

PHOENIX — Arizona's business community is stepping up to advocate for the state's Colorado River water allocation as negotiations between the seven basin states remain deadlocked and federal officials consider drastic cutbacks.

The coalition now includes Greater Phoenix Leadership, Intel, and the Central Arizona Project, working alongside a bipartisan group of mayors in what's been called the Coalition for Protecting Arizona's Lifeline.

The Stakes

Arizona's negotiators warn that the federal government may reduce the state's allocation to 15% of the Central Arizona Project's current capacity — approximately 232,000 acre feet. Without intervention, this would have devastating impacts on Arizona's economy and water supply.

"We're desert dwellers," said Neil Giuliano, President of Greater Phoenix Leadership. "We have been used to this for a very long time, and I think that's why we're very good at it, because we have to be."

Intel's Commitment

Intel Senior Technologist Kelly Osborne highlighted the semiconductor manufacturer's water conservation efforts as an example of what private industry is doing. The company has decreased its freshwater withdrawal by 30% since 2020 while bringing two new semiconductor factories online by investing in water treatment and reclamation facilities.

"Not only do we reduce and reuse water, but we also restore (more) water than we consume," Osborne said. "Intel has a net positive goal for water, so water that we actually lose to evaporation, we work with nonprofits within our watersheds to go then restore water to the river."

A Wake-Up Call

CAP Board President Terry Goddard emphasized the urgency of the situation, noting that many business leaders still don't grasp how critical the water crisis has become.

"He said, 'Well, when does it become critical? When does this issue on the Colorado River become critical?'" Goddard said. "I wanted to say, well, about five years ago … I said, 'Well, clearly today it is critical …' if it was ever critical, it's critical right now."

Dismal Snow Conditions

The situation is compounded by recent snow conditions in the Colorado River Basin. Federal forecasters described the winter as "seriously dry," "dismal" and "depressing," with wide swaths of the Rocky Mountains seeing meager snowfall.

Nels Bjarke, a research scientist with the Western Water Assessment, warned that inflows to Lake Powell from April through July are projected to be only 22% of normal after a hot March accelerated snowmelt.

"The forecast at the beginning of April is even more dire than it was before," Bjarke said.

What's At Risk

Without a deal among the seven states, the federal government may force mandatory cutbacks. A proposal designed to protect water elevations in Lake Powell would outline major reductions in water flowing to Phoenix and Tucson areas.

Nolie Templeton, a senior policy analyst with CAP, called the Colorado River's dry conditions "very concerning." She explained that low inflows could put Lake Powell, the nation's second-largest reservoir, "frighteningly close" to the level at which it can no longer generate hydroelectric power.

The Path Forward

Arizona has retained the high-powered law firm Sullivan & Cromwell to represent its position in a potential court battle. But leaders like Giuliano hope to help elected officials by providing data and information that can cut through political noise.

"If the business community can help our elected officials ignore the political noise and just work on your long-term obligation, I think we'd be helping if we can do that," Giuliano said.

Goddard emphasized the importance of striking a balance between awareness and fearmongering.

"I feel like I'm Paul Revere, not Chicken Little," Goddard said. "The sky is not falling, but we need to make an accommodation for a different kind of more water-short future. We can do it and our cities are pioneers."

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Sources:

• Arizona Capitol Times: https://azcapitoltimes.com/news/arizona-business-and-political-leaders-need-to-work-together-on-colorado-river-messaging-advocates-say
• KJZZ: https://www.kjzz.org/science/2026-04-07/dismal-depressing-and-seriously-dry-low-snow-threatens-colorado-river-water-supply