Aviation Emissions Reduction Opportunity Act or the AERO Act

This bill requires the Department of Transportation to award competitive grants for projects in the United States that support the production and deployment of sustainable aviation fuel or the development of low-emission aviation technologies. Eligible grantees include, among others, state or local governments, air carriers, and research institutions.

None of the funds made available may be used for a project unless all of the iron, steel, manufactured products, and construction materials used in the project are produced in the United States, subject to waivers where inconsistent with the public interest, where not produced in sufficient quantities or satisfactory quality, or where such inclusion will increase the cost of the project by more than 25%.

The bill also reauthorizes through FY2027 the Continuous Lower Energy, Emissions, and Noise Program of the Federal Aviation Administration.