I disagree. Seems like a perfectly reasonable interpretation. It seems pretty obvious that they would only demand people who are able to use a bike, not invalids or something. Still rather dumb, as you say.

The only thing I had qualms about was the suggestion that it would help improve the health of people (which is disputed in the title)... but then they mention 'public transportation' which does nothing for your health and makes it abundantly clear what the real agenda is.