AN ACT to expand the weatherization assistance program for low‑income families to include health and safety improvements and to authorize community‑scale projects.

The General Assembly of North Carolina enacts:

SECTION 1.  G.S. 143B‑344.46 reads as rewritten:

§ 143B‑344.46.  Weatherization Assistance Program and Heating/Air Repair and Replacement Program.

The State Energy Office within the Department may shall administer the Weatherization Assistance Program for Low‑Income Families and the Heating/Air Repair and Replacement Program functions. The Weatherization Assistance Program for Low‑Income Families shall integrate health and safety measures to reduce energy costs, improve indoor air quality, and address health risks such as asthma and other respiratory illnesses. The Department shall adopt rules to ensure the effective delivery of weatherization assistance and to implement this section. The rules shall include provisions for soliciting proposals from potential sponsors, prioritizing projects, allocating funds, and reporting requirements. The Department may use funds from federal sources, State appropriations, utility contributions, and other available sources to fund the programs. Nothing in this Part shall be construed as obligating the General Assembly to appropriate funds for the Program or as entitling any person to services under the Program.

SECTION 2.  Part 33 of Article 7 of Chapter 143B of the General Statutes is amended by adding a new section to read:

§ 143B‑344.47.  Definitions; proposals and allocation of funds; community scaled projects.

(a)        Definitions. – The following definitions apply in this Part:

(1)        Applicant. – A resident or owner, or designated agent of an owner, of a dwelling unit for which program services are sought.

(2)        Community scaled project. – A weatherization or healthy housing improvement project that includes multiple dwelling units that are located in the same neighborhood or area where overlapping factors such as environmental, social, or economic conditions may adversely impact residents, as determined by the Department.

(3)        Department. – The Department of Environmental Quality.

(4)        Healthy housing improvements. – Improvements that increase the health and safety of a home by integrating energy efficiency activities and indoor environmental quality measures.

(5)        Secretary. – The Secretary of Environmental Quality.

(6)        Sponsor. – Any entity that submits a proposal under G.S. 143B‑344.46, including any local community action agency, tribal nation, community service agency, or any other participating agency or any public utility, municipality, or any combination of such entities that jointly submits a proposal.

(7)        Sponsor match. – The share of the cost of weatherization or healthy housing improvements to be paid by the sponsor.

(8)        Weatherization. – The modification of homes and home heating and cooling systems to improve heating and cooling efficiency by caulking and weather stripping, as well as insulating ceilings, attics, walls, and floors.

(9)        Weatherizing entity. – Any entity that has been approved by the Department and that bears the responsibility for ensuring the performance of weatherization or healthy housing improvements in accordance with this Part.

(b)        Proposals and Allocation of Funds. –

(1)        Subject to the availability of amounts appropriated for this specific purpose, the Department shall solicit proposals for low‑income weatherization programs from potential sponsors. A proposal shall state the amount of the sponsor match, the amount requested, the name of the weatherizing agency, and any other information required by the Department.

(2)        A sponsor may propose to utilize grant awards and matching funds to weatherize or make healthy housing improvements to residential housing or to undertake community scaled projects.

(3)        A sponsor may not use its own funds or funds provided by landlords, charitable groups, government programs, or other sources to use as the sponsor match for previously started weatherization and community scaled projects in order to secure funds provided under this section.

(4)        A proposal must provide that full levels of all cost‑effective, structurally feasible, sustainable residential weatherization materials, measures, and practices, as determined by the Department, will be installed when a low‑income household is weatherized or improved, unless the proposal is for a community scaled project.

(5)        The Department may in its discretion accept, accept in part, or reject proposals submitted under this section.

(6)        The Department may prioritize allocating funds to projects that maximize energy efficiency, extend the usable life of an affordable home, and improve the health and safety of its residents.

(7)        When allocating funds, the Department may, to the extent feasible, consider local and State benefits, including pledged sponsor match; available energy efficiency, repair, and rehabilitation funds from other sources; the preservation of affordable housing; and balance of participation in proportion to population amount low‑income households.

(c)        Community Scaled Projects. –

(1)        A sponsor may submit a proposal to the Department for the use of grant and matching funds for a community scaled project. The proposal may include full or partial weatherization, energy efficiency measures, or structural rehabilitation and repairs for multiple dwelling units within the same community.

(2)        A sponsor must identify priority communities to be served by the community scaled project using indicators determined by the Department, which shall include data reflecting environmental health disparities, housing vulnerability, and pollution exposure.

(3)        The Department may consider publicly available socioeconomic data to prioritize community scaled project proposals that serve areas with low‑income households.

(4)        The Department shall approve or deny a proposal pursuant to this subsection within 90 days of the receipt of the completed application.

SECTION 3.  There is appropriated from the General Fund to the Department of Environmental Quality the sum of ten million dollars ($10,000,000) in nonrecurring funds for the 2026‑2027 fiscal year to be used for the Weatherization Assistance Program for Low‑Income Families, as enacted by this act. Up to ten percent (10%) of these funds may be used for administrative costs.

SECTION 4.  Sections 1 and 2 of this act become effective December 1, 2026. The remainder of this act is effective July 1, 2026.