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INDOORS AS A PRECAUTION. THE FEDERAL GOVERNMENT HAS DECLARED A SHORT SHORTAGE ON THE COLORADO RIVER WHICH PROVIDES WATER TO NEARLY 40 MILLION PEOPLE. ITS LEADING TO HISTORIC WATER CUTS. CBS NEWS SENIOR ENVIRONMENTAL CORRESPONDENT BEN TRACY REPORTS. ITS A CRISIS ON THE COLORADO. THE NATIONS LARGEST RESERVOIRS ARE RAPIDLY RETREATING. ICONIC DAMS COULD STOP PRODUCING POWER. WESTERN STATES ARE BEING WARNED TO DRASTICALLY CUT THEIR WATER USE. THIS IS A CRISIS THAT WE HAVENT SEEN IN HISTORY. TODAY THE INTERIOR DEPARTMENT DECLARED A FIRST EVER TIER TWO SHORTAGE ON THE RIVER THAT PROVIDES WATER FOR 20 MILLION PEOPLE IN SEVEN STATES. ARIZONA WILL LOSE 20% OF ITS WATER. NEVADA 8%. AND THE GOVERNMENT IS NOW THREATENING UNPRECEDENTED CUTS IT IS IN OUR AUTHORITIES TO ACT UNILATERALLY TO PROCT THE SYSTEM. Reporter: CLIMATE CHANGE IS MAKING THE WEST HOTTER AND DRIER. THE WEST DROUGHT IN 1,200 YEARS AND CHRONIC OVERUSE HAVE DRAINED LAK