Declares an intent of the legislature that the governor establish objectives and performance measures for the department of transportation and other state agencies with transportation related responsibilities to ensure transportation system performance at local, regional, and state government levels attains the policy goals set forth in this act. The governor shall submit initial objectives and performance measures to the legislature for its review during the 2008 legislative session. The governor shall submit objectives and performance measures to the legislature for its review during each regular session of the legislature during an even-numbered year thereafter.

     Provides that, by October 1, 2007, the commission shall submit a baseline report on the attainment of policy goals under RCW 47.01.012 in the 2005-2007 fiscal biennium. By October 1, 2008, beginning with the development of the 2009-2011 biennial transportation budget, and by October 1st each year thereafter, the commission shall submit to the legislature and the governor an annual report on the attainment by state transportation agencies of the state transportation policy goals and objectives prescribed by statute, appropriation, and governor directive.

Requires the report to, at a minimum, include the degree to which state transportation projects and programs attained the policy goals established under RCW 47.01.012, as measured by the objectives and performance measures established by the governor under RCW 47.01.012 and presented biennially to the legislature.

Requires the transportation commission to prepare a comprehensive and balanced statewide transportation plan based on the policy goals established under RCW 47.01.012. The statewide transportation plan must reflect the priorities of government developed by the office of financial management, address regional needs, and take into account federal law and regulations relating to planning, construction, and operation of transportation facilities. The plan must be reviewed, revised, and submitted to the governor and the house of representatives and senate standing committees on transportation before each regular session of the legislature during an even-numbered year. The plan is subject to the approval of the legislature in the biennial transportation budget act.

Provides that, as components of the statewide transportation plan, the transportation commission must develop a state transportation policy plan and a state transportation multimodal plan.

Repeals RCW 47.05.051, 47.01.370, 47.06.040, and 47.06.120.