Gov. Jay Inslee named a new leader for the state's Department of Transportation on Tuesday, tapping a transportation planner who has focused on issues such as rail, transit and alternative fuels.

Lynn Peterson is currently working as a transportation adviser to Oregon Gov. John Kitzhaber. She would replace Paula Hammond, who has told staff she will be leaving in March.

Inslee said Peterson will help the state develop an innovative approach to a transportation network that he believes is outdated and hampering economic growth.

"Lynn has the experience, creativity and leadership skills to help Washington build a transportation system for the 21st century," Inslee said. "And we'll do that in a way that more efficiently moves people and goods and reduces carbon emissions."

The appointment comes at a time that lawmakers are discussing a possible gas tax increase to fund transportation projects around the state.

Peterson has a background that has focused on transportation alternatives. She was previously a transportation advocate for 1000 Friends of Oregon, a land conservation group. She was also a planning manager at Trimet, which provides transit service in the Portland area.

Inslee's office said Peterson has recently been working in Oregon on issues like the state's portion of the West Coast network of electric-vehicle charging stations, and moving commercial vehicles to alternative fuels.

Inslee also said he had chosen bank executive Carol Kobuke Nelson to lead the Department of Revenue, reappointed Scott Jarvis as director of the Department of Financial Institutions, and tapped Nicholas Brown to be his new General Counsel. Brown works for the U.S. attorney's office as an assistant U.S. attorney in the Terrorist & Violent Crimes Division.