The episode starts with SpongeBob recklessly driving. He suddenly thinks of blowing bubbles to relax himself after getting stressed. It soon backfires when the distraction of said bubbles causes his boat to eventually crash. Mrs. Puff tells him that he is hopeless at getting a driver's license and SpongeBob walks off sad. He then sees Larry, Mr. Krabs, and Patrick have their own boats. He only gets sadder each time he sees his friends with a boat.
He sits behind his house blowing bubbles. He wishes that he'd be as good as driving boats as he would for blowing bubbles. Suddenly, he has the idea of blowing a bubble boat to drive in. Everyone is pleased with the new boat type. A policeman notices and says that every vehicle requires a license, but SpongeBob replies that no license is required for driving a bubble. The policeman then agrees. SpongeBob gets home to tell Gary all the good news on his new bubble boat experience, though Gary just ignores him.
Soon, everyone is desperately wanting bubble boats, so SpongeBob gets a giant container of bubble mix into a tub. Afterwards, SpongeBob makes a bubble boat for everyone.
Meanwhile, Mrs. Puff notices everyone has a bubble boat. She is trying to drive home with her normal boat, but this angers many of the bubble boat drivers, as well as the police towing away her normal boat. Puff then has to go to Bubble Boating School, a temporary boating school run by SpongeBob.
At Bubble Boating School, SpongeBob teaches Mrs. Puff about how to drive a bubble boat. She eventually understands how to ride a bubble boat, after going through mastering multiple dangerous obstacle courses. She then does her final test, the final test being on the real road.
During her final bubble-boating test, she is happily talking to SpongeBob about the bubble boats but soon gets distracted and goes to the highway instead of continuing on the small roads. She ends up crashing, leading her to involuntarily expand, which makes her cause further mayhem to the bubble boaters. SpongeBob ends up saving all of them just in time.
Soon the police come to tell everyone, including SpongeBob, that bubble boats are now illegalized and normal boats have been re-legalized. SpongeBob then tells Mrs. Puff that he will see her again at boating school the next day. At the end of the episode, Mrs. Puff expands and sighs.
The songs heard during the countdown were "Sky Drive," "Bonus Point," "Street Cop" and "Electronic Sheep" by Charles Hedger, and "Keep This Going" by Jon Murrill, Lee Richardson, Tom Ford, James Carlo Giorgi Cocozza and Sarah Jane Norman.
SpongeBob says "You don't need a license to drive a bubble" when he gets pulled over, which is a reference to his line "You don't need a license to drive a sandwich" from The SpongeBob SquarePants Movie.
This episode takes place in November 2013 because a driver's license expires every 4 years and on the bubble license it expired December 1, 2017.