The California Public Finance Authority has adopted an initial resolution supporting the potential issuance of up to $1.1 billion in tax-exempt bonds for projects by Aemetis Inc. (NASDAQ: AMTX), according to a company statement.

The Capital Programs & Climate Financing Authority resolution meets federal tax requirements, allowing bond proceeds to fund qualified project costs incurred after the resolution date and certain prior development expenses. The adoption does not guarantee final bond approval, which requires completion of final documentation.

The covered projects include construction of more than 40 dairy digesters and biogas pipeline connections to Aemetis' renewable natural gas facility in Keyes, California. The resolution also encompasses underground carbon dioxide sequestration and sustainable aviation fuel production development in Riverbank, California.

"This Initial Resolution adopted by CPCFA further confirms the value of our projects, which reduce emissions, lower fuel costs, and create jobs and economic growth in California," said Eric McAfee, Chairman and CEO of Aemetis. "The use of tax-exempt bonds at lower interest rates than other sources of financing has potential to enhance our financial position as we implement a variety of projects that are expected to strengthen our balance sheet and generate profitability."

Aemetis Biogas currently operates 12 anaerobic digesters collecting dairy manure waste from 15 dairies, a 36-mile biogas collection pipeline, and a central biogas-to-renewable natural gas production facility. More than 50 dairies are contracted to supply waste to the digester network.

Tax-exempt bond issuance requires allocations from a statewide volume limit. The Cupertino-based company also operates a 65 million gallon per year ethanol production facility in California's Central Valley and an 80 million gallon per year biodiesel facility in India.