Addresses compressed natural gas and liquefied natural gas used for transportation purposes with regard to fuel taxes and sales taxes; state and local business taxes; export and machinery and equipment sales and use tax exemptions; and utility law changes.

Requires the department of licensing to convene a work group to: (1) Evaluate the annual license fee in lieu of fuel tax under RCW 82.38.075 to determine a fee that more closely represents the average consumption of vehicles by weight; and

(2) Develop a transition plan to move vehicles powered by liquefied natural gas and compressed natural gas from the annual license fee in lieu of fuel tax to the fuel tax under RCW 82.38.030.

Requires the department of revenue to convene a work group to examine the appropriate level and manner of taxing liquefied natural gas used for marine vessel transportation.