Creates the transportation project contingency account in the state treasury. All receipts from taxes imposed under RCW 82.08.020 and 82.12.020 on materials, labor, equipment, contracts, and components used for constructing any state transportation project must be deposited into the account. Moneys in the account may be spent only after appropriation. Expenditures from the account may be used only for unanticipated increases in transportation project costs.

Requires the department of revenue to provide the state treasurer with the information regarding the amount of sales and use taxes available for deposit into the account on a quarterly basis. The department of revenue shall report annually on the account balance to the transportation committees of the legislature by March 1st.

Provides that transportation projects in need of additional funding due to unanticipated cost increases shall be identified by the department of transportation and reported annually to the transportation committees of the legislature by March 1st.