Public Transportation Preservation Act of 2010

Public Transportation Preservation Act of 2010 - Authorizes the Secretary of Transportation to make emergency grants to states and designated recipients (urbanized areas) for the operating costs of equipment and facilities for use in public transportation projects. Prescribes a formula for the apportionment of grant funds.

Requires amounts apportioned to a state or urbanized area, with a specified exception, to be used for operating expenses necessary to restore or prevent a reduction in public transportation service and related workforce reductions, or to rescind all or a portion of a fare increase, that: (1) occurs between January 1, 2009, and September 30, 2011; and (2) is due to decreased state or local funding or farebox revenue.

Authorizes a recipient which certifies that it has not had a major reduction in public transportation service, or a fare increase as a result of decreased state or local operating funding, and will be able to avoid such reductions or increases through FY2011 without the funds made available by this Act, to use such funds to replace, rehabilitate, or repair existing transit capital assets used in public transportation.

Sets the amount of a grant, at the option of the recipient, at up to 100% of the net cost of a project.