Section 3E. The department shall administer a program of zero interest loans to cities and towns for the acquisition of open space land utilizing monies in the Open Space Acquisition Revolving Fund established under section 2HHH of chapter 29. The department shall accept applications from cities and towns, in a form to be determined by the department, for loans to allow cities or towns to acquire open space land. The loans shall be repayable to the Open Space Acquisition Revolving Fund in 20 annual installments. The department shall set standards and adopt rules and regulations to carry out the purposes of this section.