Declares that "alcohol fuel" means any alcohol made from a product other than petroleum or natural gas that is used alone or in combination with gasoline or other petroleum products for use as a fuel in self-propelled motor vehicles.

Declares that "alternative fuel" means all products or energy sources used to propel motor vehicles, other than conventional gasoline, diesel, or reformulated gasoline. Alternative fuel includes, but is not limited to, liquefied petroleum gas, liquefied natural gas, compressed natural gas, biodiesel fuel, E85 motor fuel, fuels containing seventy percent or more by volume of alcohol fuel, fuels that are derived from biomass, hydrogen fuel, nonhazardous motor fuel, or electricity, excluding onboard electric generation.

Declares that "E85 motor fuel" means an alternative fuel that is a blend of ethanol and hydrocarbon of which the ethanol portion is nominally seventy-five to eighty-five percent denatured fuel ethanol by volume that complies with the most recent version of American society of testing and materials specification D 5798.

Provides that special fuel licensees under chapter 82.38 RCW, other than international fuel tax agreement licensees, dyed special fuel users, and special fuel distributors, shall not use biodiesel fuel derived from palm oil to qualify towards the biodiesel fuel requirements established in RCW 19.112.110, unless the following conditions are satisfied: (1) The special fuel licensee can demonstrate that, at the time of production, there was not sufficient Washington grown feedstock available to produce the biodiesel from canola, rapeseed, or mustard oil; and

(2) The palm oil was purchased from a company that: (a) maintains active membership in the roundtable on sustainable palm oil; and (b) implements the roundtable on sustainable palm oil's directives as they are promulgated in order to ensure the sustainability of the palm oil.