SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Public Transportation Preservation 
Act of 2010''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) The American Public Transportation Association 
        estimates that since January 1, 2009, 84 percent of transit 
        systems have raised fares, cut service or are considering one 
        of those actions.
            (2) Many low-income workers, older Americans, and people 
        with disabilities depend on transit service to get to jobs and 
        health care. Reduced service and higher fares can have a 
        devastating effect on their quality of life.
            (3) Millions of Americans use transit every day. Reduced 
        transit service makes it harder for workers to access jobs and 
        puts more cars on the road, worsening already bad traffic 
        congestion in many metropolitan areas.

SEC. 3. EMERGENCY OPERATING FUNDS FOR PUBLIC TRANSPORTATION.

    (a) General Authority.--The Secretary of Transportation may make 
grants to States and designated recipients that receive funding under 
chapter 53, United States Code, for the operating costs of equipment 
and facilities for use in public transportation.
    (b) Apportionment of Funds.--Of the funds made available under this 
section--
            (1) 80 percent shall be apportioned in accordance with 
        section 5336 of title 49, United States Code;
            (2) 10 percent shall be apportioned in accordance with 
        section 5340 of title 49, United States Code; and
            (3) 10 percent shall be apportioned to other than urbanized 
        areas in accordance with section 5311 of title 49, United 
        States Code.
    (c) Use of Funds.--
            (1) In general.--Except as provided in paragraph (2), the 
        amounts apportioned to a State or urbanized area pursuant to 
        subsection (b) shall be used--
                    (A) for operating expenses necessary to--
                            (i) restore a reduction in public 
                        transportation service and related workforce 
                        reductions; or
                            (ii) rescind all or a portion of a fare 
                        increase;
                if such reduction or increase was due to decreased 
                State or local funding or farebox revenue, that 
                occurred on or after January 1, 2009; and
                    (B) to prevent reductions or increases described in 
                subparagraph (A) through September 30, 2011.
            (2) Exception.--
                    (A) In general.--If a recipient submits a 
                certification to the Secretary that the recipient has 
                not had a major reduction in public transportation 
                service, as described in section 5307(d)(1)(I) of title 
                49, United States Code, 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 
                September 30, 2011, without the funds made available by 
                this section, a recipient may use the funds to replace, 
                rehabilitate, or repair existing transit capital assets 
                used in public transportation as defined under section 
                5302(a)(10) of title 49, United States Code.
                    (B) Use of remaining funds.--A recipient may use 
                any remaining funds made available by this section to 
                replace, rehabilitate, or repair existing transit 
                capital assets used in public transportation as defined 
                under section 5302(a)(10) of title 49, United States 
                Code if that recipient has--
                            (i) restored a major reduction in public 
                        transportation service or rescinded a fare 
                        increase; and
                            (ii) is able to avoid reductions or 
                        increases described in paragraph (1)(B).
    (d) Requirements.--Applicable requirements of chapter 53 of title 
49, United States Code, shall apply to funding provided under this 
section. Section 1101(b) of Public Law 109-59 (119 Stat. 1156) shall 
apply to funding provided under this section.
    (e) Government Share of Costs.--A grant under this section shall 
be, at the option of the recipient, up to 100 percent of the net cost 
of the project.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $2,000,000,000 to remain 
available for obligation through September 30, 2011.
    (g) Funds Availability.--Funds apportioned under this section and 
obligated on or before September 30, 2011, shall be expended on or 
before July 1, 2012.
    (h) Oversight.--Three-quarters of 1 percent of the funds available 
under paragraphs (1) and (2) of subsection (b), and one-half of 1 
percent of the funds available under paragraph (3) of subsection (b), 
shall be provided for administrative expenses and program management 
oversight, and such funds shall be available through September 30, 
2013.
Output: 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.