Arizona Department of Environmental Quality (ADEQ) met or exceeded all their inspection goals established in agreement with EPA, except storm water. There were some problems identified with timeliness, follow-thru and documentation of enforcement actions which the State is addressing. The State received NPDES authority in December 2002 which impacted their FY 2003 performance. Program performance improved significantly in FY 2004 with an increase in staff and staff training. The State is committed to improving their Programs. Some major steps they have taken include working with the Arizona Attorney General (AG) to dedicate an attorney for environmental enforcement cases, establishing an Air Enforcement Unit to focus on case development, and they are now entering data directly into RCRAInfo although timeliness is an issue. Also, in 2004, EPA trained ADEQ staff on the BEN model to evaluate economic benefit as part of a penalty calculation. Additional Steps ADEQ can take include obtaining administrative penalty authority, finalizing its draft penalty policy, timely entering of RCRAInfo data, and additional management oversight and training of Air Program inspectors.