AN ACT to provide utility shut‑off protections during periods of extreme heat, Extreme cold, and poor air quality; to protect residential tenants from periods of extreme heat and poor air quality by authorizing the installation of portable cooling and air filtration devices; and To MAKE various technical changes.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 62‑159.1 reads as rewritten:

§ 62‑159.1.  Debt collection practices.

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(c)        No public utility or electric membership corporation shall suspend or disconnect service to a residential retail customer during a period of extreme heat or a period of poor air quality as defined in G.S. 42‑40 or extreme cold with a high temperature under 32 degrees Fahrenheit. A public utility and electric membership corporation shall offer customers with delinquent accounts, who have been adversely affected by the extreme weather event, with the option of settling any unpaid balance through participation in a deferred payment plan.

SECTION 2.  G.S. 42‑40 reads as rewritten:

§ 42‑40.  Definitions.

For the purpose of this Article, the following definitions shall apply:

(1)        Action includes recoupment, Action. – Recoupment, counterclaim, defense, setoff, and any other proceeding including an action for possession.

(1a)      Air quality alert. – An alert that includes a warning regarding unhealthy or very unhealthy air quality (Air Quality Index of 151 or higher) or similar alert for the area in which the tenant's address is located.

(1b)      Heat‑related alert. – An alert that includes an excessive heat warning, excessive heat watch, extreme heat index advisory, heat advisory, or similar alert for the area in which the tenant's address is located.

(1c)      Landlord. – Any owner and any rental management company, rental agency, or any other person having the actual or apparent authority of an agent to perform the duties imposed by this Article.

(1d)     Period of extreme heat. – A period beginning 24 hours before the effective time of any heat‑related alert issued or announced by the National Weather Service, or beginning at the effective time of any heat‑related alert issued without advance announcement, and ending 48 hours after the expiration or cancellation of the heat‑related alert. If multiple heat‑related alerts overlap or are sequential, the period of extreme heat includes all overlapping or sequential alerts and continues uninterrupted until 48 hours after the last heat‑related alert expires or is canceled.

(1e)      Period of poor air quality. – A period beginning 24 hours before the effective time of any air quality alert issued or announced by the Environmental Protection Agency or the North Carolina Department of Environmental Quality, or beginning at the effective time of any air quality alert issued without advance announcement, and ending 48 hours after the expiration or cancellation of the air quality alert. If multiple air quality alerts overlap or are sequential, the period of poor air quality includes all overlapping or sequential alerts and continues uninterrupted until 48 hours after the last air quality alert expires or is canceled.

(1f)      Portable air filtration device. – An air purifier or similar device designed to improve indoor air quality but not including a device whose installation or use requires alteration to the premises.

(1g)      Portable cooling device. – An air conditioner, or evaporative cooler, including a device mounted in a window or designed to sit on the floor, but not including a device whose installation or use requires alteration to the premises.

(2)        Premises means a Premises. – A dwelling unit, including mobile homes or mobile home spaces, and the structure of which it is a part and facilities and appurtenances therein and grounds, areas, and facilities normally held out for the use of residential tenants.

(3)        Landlord means any owner and any rental management company, rental agency, or any other person having the actual or apparent authority of an agent to perform the duties imposed by this Article.

(4)        Protected tenant means a Protected tenant. – A tenant or household member who is a victim of domestic violence under Chapter 50B of the General Statutes or sexual assault or stalking under Chapter 14 of the General Statutes.

SECTION 3.  Article 5 of Chapter 42 of the General Statutes is amended by adding a new section to read:

§ 42‑42.4.  Tenant right to install portable cooling and air filtration devices.

(a)        A landlord may not prohibit or restrict a tenant from installing or using a portable cooling device or portable air filtration device of the tenant's choosing, unless any of the following apply:

(1)        The installation or use of the device would do any of the following:

a.         Violate building codes or State or federal law.

b.         Violate the device manufacturer's written safety guidelines.

c.         Cause unreasonable damage to the premises or render the premises uninhabitable.

d.         Require amperage to power the device that cannot be accommodated by the power service to the premises. A landlord who limits the use of devices for this reason must prioritize allowing the use of devices for tenants who require them to accommodate a disability as defined by State or federal law. A landlord is not responsible for any interruption in electrical service that is not caused by the landlord, including interruptions caused by an electrical supply's inability to accommodate use of the device.

(2)        The device would be installed in a window and any one of the following is true:

a.         The window is a necessary egress from the premises.

b.         The device requires excessive use of brackets or other hardware that would damage or void the warranty of the window or frame, puncture the exterior wall of the premises, or otherwise cause significant damages.

c.         The installation would not allow for adequate drainage to prevent damage to the premises.

d.         The device cannot be secured in a way that prevents it from falling out of the window.

(3)        The premises already have a permanently installed and fully operational heat pump or other cooling system that is capable of cooling the premises.

(b)        A landlord shall not enforce a restriction on portable cooling or air filtration devices against a tenant unless the restriction is allowed under this section and is delivered to the tenant in writing within 48 hours of notice of the default above. The tenant shall then remove the offending device within 48 hours of the written notice if already installed.

(c)        A landlord is immune from liability for any claim for damages, injury, or death caused by a portable cooling or air filtration device installed or used by the tenant.

(d)       A landlord must include written information in a written rental agreement or lease notifying a tenant of the tenant's rights, responsibilities, and restrictions related to the installation and operation of portable cooling and air filtration devices.

SECTION 4.  Article 5 of Chapter 42 of the General Statutes is amended by adding a new section to read:

§ 42‑42.5.  Restrictions on termination of utility service during periods of extreme heat or poor air quality.

(a)        Notwithstanding any other provision of law, during a period of extreme heat or a period of poor air quality for the area in which the premises are located, a landlord may not effect an involuntary termination of electric utility or water service for the premises due to lack of payment by the tenant, except as provided in this section.

(b)        A tenant whose electric or water utility service has been disconnected for lack of payment may request that the landlord reconnect service during a period of extreme heat or poor air quality. The landlord shall inform all tenants in any notice of disconnection of the ability to seek reconnection and provide clear and specific information on how to make that request, including how to contact the landlord. Upon receipt of such a request, the landlord shall promptly make a reasonable attempt to reconnect the service to the premises. The landlord, in connection with such a request, may require the tenant to enter into a payment plan prior to reconnecting service. If the landlord requires the tenant to enter into a repayment plan, the repayment plan must comply with this Chapter, and be designed both to pay the past due bill by the following May 15th, or as soon as possible after May 15th if needed to maintain monthly payments that are no greater than six percent (6%) of the tenant's net monthly income, and to pay for continued utility service. The plan may not require monthly payments in excess of six percent (6%) of the tenant's net monthly income. A tenant may agree to pay a higher percentage during this period but will not be in default unless payment during this period is less than six percent (6%) of the tenant's net monthly income. If assistance payments are received by the tenant subsequent to the implementation of the plan, the tenant shall contact the landlord to reformulate the plan.

SECTION 5.  There is appropriated from the General Fund to the North Carolina Utilities Commission the sum of one hundred thousand dollars ($100,000) in recurring funds beginning with the 2026‑2027 fiscal year to assemble and disseminate a report of disconnections on an annual basis.

SECTION 6.  This act becomes effective July 1, 2026, and applies to rental agreements or leases entered into or renewed on or after that date.