Some of the revenue generated by a Clean Air Zone (CAZ) could be used to support Bradford's first electric bike hire scheme.
The CAZ was introduced in September 2022 in a bid to cut pollution and imposes a charge on commercial vehicles which do not meet emission standards.
It had raised more than £10m in charges and fines by the end of 2023, but the money raised can only be spent on schemes designed to improve air quality.
The city council said it hoped the electric bike hire scheme would be operational next year to coincide with Bradford's term as UK City of Culture.
Sarah Ferriby, the council's executive member for healthy people and places, said: "Several cycle network schemes will be coming to fruition to coincide with the launch of the E-Bike Hire Scheme providing cycle infrastructure for residents, workers and visitors to the district.
"We are therefore pleased to bring forward these plans to use CAZ funds to offer an E-Bike hire scheme.
"We want everyone to be able to utilise the opportunities to enjoy active travel."
She added that to have the scheme up and running for the UK City of Culture year would be "really exciting."
The aim of the CAZ is to cut pollution and reduce its impact on people's health.
Daily fees for commercial vehicles entering the area range from £7 to £50 and those that do not pay can be fined £120 plus the original fee.
The Clean Air Schools Programme was the first scheme launched using £1.1m of funding generated by fines and charges.
The scheme helps schools to reduce pupil's exposure to air pollution and includes improved cycle storage, safe bike paths, bike servicing, learn to ride schemes for parents and children and creating active travel maps to enable children to cycle to school.
The council also used £1.7m from the scheme to fund a number of transport improvements, including a greener vehicle fleet for the authority and an electric vehicle charging network.
The council said the city has the cleanest licenced taxi fleet in the country.
But some business owners have said the CAZ has caused confusion among customers and added to price rises.
Funding for the electric bike hire scheme will be considered by the council's executive on Tuesday.