This is pretty awesome if it goes through.
With the myriad and sometimes ambiguous rules concerning birth sex, passport, birth certificate, doctors certificate, therapists letters, blah blah blah and with other harassment issues at the bank, pub, Airport, TSA, leading to negligent behavior by the authorities and embarassing questions everywhere, something like this will be a positive and first step.
National Motor Vehicle Admin Group: Change Trans IDs via National Motor Vehicle Admin Group: Change Trans IDs | The Bilerico Project.
On a related note, its a shame that many countries in the World require a surgery to change the Gender marker in the passport. Some even go further to the point of denying an individual the right to change the Birth certificate. This not only opens the individual to harassment but potentially places trans individuals in an unsafe environment and vulnerable to abuse, endangering those whose lives their government is supposed to protect in the very first place.