Google announced of adding an option to license selector to allow any project to use an Open Source Initiative (OSI) approved license. Simply select "other open source" and indicate in your LICENSING, COPYING or similar file which license you're using.
Public domain projects are still only allowed on a case by case basis, as true public domain projects are quite rare and, in some countries, impossible. We encourage those that want to truly ship public domain to look at how D. Richard Hipp does things around SQLite and emulate his style.
(Please note: we will continue to hunt down and kill non-open source projects or other projects using Google Code as a generic file-hosting service.)," stated Google.