(1) Buffalo-Rochester: Cattaraugus, Chautauqua, Erie, Genesee, Livingston, Monroe, Niagara, Ontario, Orleans, Seneca, Wayne, Wyoming and Yates counties;

(2) Syracuse-Southern Tier: Allegany, Broome, Cayuga, Chemung, Chenango, Cortland, Delaware, Madison, Onondaga, Oswego, Otsego, Schuyler, Steuben, Tioga and Tompkins counties;

(3) Central-Northern: Albany, Clinton, Essex, Franklin, Fulton, Hamilton, Herkimer, Jefferson, Lewis, Montgomery, Oneida, Rensselaer, Saratoga, Schenectady, Schoharie, St. Lawrence, Warren and Washington counties;

(4) Westchester-Mid-Hudson: Columbia, Dutchess, Greene, Orange, Putnam, Rockland, Sullivan, Ulster and Westchester counties;

(5) Long Island: Nassau and Suffolk counties;

(6) New York City: the five counties comprising the city of New York. 2. The commissioner is hereby authorized and directed to establish the New York state business energy conservation loan program. The program shall facilitate below market interest rate loans by financing institutions within the state for eligible energy conservation improvements made to eligible applicants as hereinafter provided. 3. The commissioner may enter into cooperative agreements with financing institutions within the state for the financing with the institution's own assets of eligible energy conservation improvements by eligible applicants at a rate that is at least twenty-five percent below the prime interest rate. Such interest rate shall initially be five percent. The commissioner shall agree to utilize such funds as are appropriated to this program and the earnings produced on such funds to underwrite interest subsidies on loans made to eligible applicants, if not inconsistent with federal requirements and court decisions directing the payment of petroleum overcharge funds to the state. Such agreements shall provide that: (i) the maximum loan per applicant shall be five hundred thousand dollars, except that the commissioner may increase the maximum loan amount up to one million dollars for specific types of improvements by rule and regulation, (ii) the duration of the loan shall not to exceed ten years, (iii) program loans shall be made only after an application has been made to the office, the office has approved the technical merits of the proposed improvement and the office has notified the financing institution of its approval and the amount of interest reduction upon the loan to be funded pursuant to such agreement, and (iv) loan agreements with program applicants shall provide for a post installation inspection, as deemed necessary by the office. 4. The commissioner shall apportion the moneys appropriated for this program for the purpose of providing interest subsidies to applicants within each of the six regions of the state identified in paragraph g of subdivision one of this section based on the ratio, calculated by the commissioner, which reflects: a. the volume of refined petroleum products consumed within that region during the period beginning September first, nineteen hundred seventy-three, and ending January twenty-eighth, nineteen hundred eighty-one, compared to b. the volume of refined petroleum products consumed within the six regions during such period. Such calculation shall be made by the commissioner upon estimates determined by him in reliance upon reasonably available information. The commissioner may reapportion the funds available for interest subsidies for applicants within any region under this subdivision for use in one or more of the other regions upon finding that participation in the program within the former region would not be adversely affected, and that there exists in the latter region or regions inadequate funds to satisfy the demand for program participation. In any fiscal year of the state, the amount of funds available to applicants within any region may be reduced by not more than twenty-five percent of the total amount apportioned for such region. A copy of the commissioner's finding shall be given to the chairman of the senate finance committee and the chairman of the assembly ways and means committee. 5. In addition to the authority granted under subdivision three of this section, the commissioner shall be authorized to utilize monies appropriated to this program for the purpose of providing loan guaranties and principal reductions for eligible applicants, if such uses are permissible under the conditions applicable to the appropriated overcharge funds. Principal reductions shall be limited to the amount of the interest subsidy which would otherwise be available to an eligible applicant under subdivision three of this section. 6. In implementing the program, the commissioner is authorized to take such action as he deems necessary and appropriate which may include but not be limited to the promulgation of rules and regulations formulated after consultation with the energy research and development authority, the department of commerce and the department of financial services. Such rules and regulations may include but not be limited to requirements for applications and supporting materials and criteria for the selection of cooperating financing institutions.