AAERO Act

The AAERO Act amends an existing alternative fuel and low-emission aviation technology program to increase funding and adjust criteria for sustainable aviation fuel projects. It modifies how grants are prioritized, changes cost-share rules, defines lifecycle greenhouse gas emissions reduction, and authorizes additional appropriations for fiscal year 2024.

Sec. 2, Alternative Fuel and Low-Emission Aviation Technology Program: The bill revises the program's grant considerations to emphasize capital expenditures for scalable technologies that help meet national sustainable aviation fuel production goals from the Sustainable Aviation Fuel Grand Challenge. It changes the federal cost share from a mandatory 75% to a maximum of 75%, and from a mandatory increase to 90% to a possible increase to 90% if requested. It replaces the definition of lifecycle greenhouse gas emissions reduction percentage to allow use of the ICAO CORSIA scheme, the Argonne GREET model, or similar EPA methodologies. It defines lifecycle greenhouse gas emissions to include direct and significant indirect emissions. It updates the definition of sustainable aviation fuel to exclude palm fatty acid distillates and petroleum, require at least a 50% lifecycle emissions reduction, and reference the Sustainable Aviation Fuel Grand Challenge Memorandum. It authorizes $489,258,000 for projects under subsection (a)(1), $209,682,000 for projects under subsection (a)(2), and $4,060,000 for subsection (a)(3), for fiscal year 2024, available until spent. These amendments apply retroactively as if included in the original law.