BENTONVILLE — Residents will be able to more easily acquire e-bikes for recreation and transportation thanks to a pilot program set to begin this summer.

The City Council unanimously approved two grants totaling $2.25 million that will go toward an e-bike rebate program at its meeting Tuesday.

The first grant — $750,000 — came from Walmart Corporate and will be paid in annual installments of $250,000, according to documents included in the meeting packet. The second — $1.5 million — was awarded by the Walton Family Foundation and will similarly be doled out over three payments.

The City Council also voted 8-0 to allow the city to enter into an agreement with the firm Aptim Environmental & Infrastructure to administer the program for the Parks and Recreation Department.

The cost of the agreement is a $150,000 startup fee, in addition to 5% of all rebates Aptim processes for the program, according to a proposal from the firm. The program is expected to launch in July.

Jackie Bubenik, Bentonville’s bike and pedestrian planner, wrote in a memo the program’s main purpose is to develop and fund a cycling infrastructure that ensures all Bentonville residents can participate in and benefit from electric bicycles.

Bubenik argued increasing the adoption of e-bikes will lead to residents seeing a reduction in the vehicle miles they travel, lower transportation costs and improved health outcomes. It will also encourage residents to make the “renewable energy transportation mode” a larger element of commuting around Bentonville, according to Bubenik.

“We have seen elsewhere; increased usage of e-bikes will lead residents to seek increased investment in safe biking infrastructure,” Bubenik said. “E-bikes have been shown to be an effective tool in reducing usage of passenger vehicles particularly for trips under three miles.”

Bubenik said cities and states across the country have started experimenting with e-bike rebates as a policy mechanism to help reduce

“We have seen elsewhere; increased usage of e-bikes will lead residents to seek increased investment in safe biking infrastructure. E-bikes have been shown to be an effective tool in reducing usage of passenger vehicles particularly for trips under three miles.”

Jackie Bubenik, Bentonville’s bike and pedestrian planner

the cost of e-bikes and, by extension, increasing their adoption. He noted it typically costs more than $2,000 to purchase a regular e-bike and $3,000 for a cargo e-bike.

The proposal from Aptim states the program will subsidize the cost of e-bike purchases from local stores. It will be open to city residents and provide additional subsidy to those who meet specific income requirements. The program will last until the money for rebates is exhausted or the program is extended.

Residents will be able to apply for rebate vouchers through an online system which has yet to be created.

The proposal recommended the program provide rebates for class I, II and III standard e-bikes, as well as both cargo e-bikes — which are designed to allow carrying capacity — and adaptive e-bikes — which are designed to meet individual and specialized needs of riders.

The rebates Aptim proposed for non-income-qualified participants included $500 for a standard e-bike and $900 for a cargo or adaptive e-bike, which will be raised to $900 and $1,300 respectively for income qualified participants.

The firm also recommended a $100 safety equipment voucher for income qualified participants. This will include a helmet, bike lock, light and children’s bike seat.

Bubenik wrote in another memo Parks and Recreation staff have raised $3.95 million in grants to cover program operations over a three-year period. This includes the two grants the City Council recognized Tuesday, along with another $1.45 million grant it accepted from the Walton Family Foundation in November and a $250,000 grant from the Walmart Foundation it accepted in January.

Elysia Springer, co-founder and chief executive officer of Gnargo Bike Co., said the rebate program would significantly impact her business by making its cargo e-bikes more affordable and accessible for families and individuals wanting a more active transportation option. Although Gnargo already offers financing, Springer said the rebate would be “huge.”

“A rebate program would make it possible for more folks to have a healthier lifestyle through active transportation,” Springer said.

Council Member Octavio Sanchez said he previously asked why the city — rather than a nonprofit organization — should run the rebate program. He said his question was addressed in a memo, in which Bubenik stated parks staff and local nonprofits agreed the initial pilot program has a higher chance of success if the Parks and Recreation Department offered it.

“Our activity in trail development, relationships with trail users, advocates, local cycling retailers and the overall industry gives our team the ability to make the largest possible impact for our citizens,” Bubenik said. “Our overarching goal is about encouraging multiple modes of transportation, environmental stewardship, public health and enriching lives of our citizens. We believe this program helps us achieve this.”