In October 2005, the LOCSD defaulted on a low interest State Revolving Fund loan. The state subsequently refused to disburse additional project funds and demanded immediate repayment of project funds that had dispersed. Project contractors filed lawsuits for more than $23 million in costs and lost profits. The Central Coast Regional Water Quality Control Board has used its enforcement powers to impose fines against the district in the amount of $6.6 million for violation of the discharge prohibition emanating from three LOCSD-owned sites. During February 2006 the Regional Water Quality Control Board, threatened it would begin to issue cease and desist orders to citizens of Los Osos, and may require recipients to pump their septic systems every three years, and to stop using them by 2011.