OID is beginning to implement an in-lieu and direct recharge project to support groundwater (GW) sustainability in the Modesto Subbasin.  Through OID's 10-year Out-of-District Water Sales Program (10-Year Program) that was initiated in 2022, up to 25,000 acre-feet per year (AFY) of surface water from the Stanislaus River is being delivered when available under existing water rights to facilitate recharge outside OID's service area in the Modesto and Easter San Joaquin Subbasins.  Of the total 25,00 AFY, OID anticipates it will deliver approximately 20,000 AFY of surface water in the Modesto Subbasin when available without impact to OID's in-District constituents.  However, infrastructure improvements are needed to increase the capacity of OID's Paulsell Lateral. 

The OID Paulsell Lateral Expansion (Project) will allow OID to deliver most of the 20,000 AFY through OID's Paulsell Lateral to facilitate in-lieu and direct recharge on approximately 6,400 acres of previously developed, GW dependent agricultural lands in the Non-District East Management Area of the Modesto Subbasin.  Project infrastructure improvements will also provide additional in-lieu recharge benefits by improving irrigation service to approximately 4,600 acres of in-District lands that are served by OID, but have resorted in part to pumping GW to supplement irrigation due to irrigation service/supply issues on the Paulsell Lateral.  The Project is among the highest-priority projects for near-term implementation identified in the Modesto Subbasin GSP, owing its feasibility for immediate implementation, the availability of sufficient surface water under existing water rights, its multiple benefits to local communities and the region, and its direct benefits to halt overdraft and address undesirable results impacting public and domestic water supply wells. 

OID has been awarded over $14.3M in grant funding, the second highest funding award in the state, through Round 2 SGMA Implementation Grant funding for the Project design, environmental review/permitting, and construction to enlarge and automate over five miles (Reach 1) of the ten-mile canal system.  Project construction will take place starting November 1st over the 2024/2025 winter, focusing on enlargement of teh two existing Paulsell Lateral tunnels, while design and permitted for the balance of the Project continues.  Final construction of Reach 1 is anticipated to be completed priort to the 2026 irrigation season.