Amends GS 143B-344.46 to provide that the State Energy Office shall (was, may) administer the Weatherization Assistance Program for Low-Income Families and the Heating/Air Repair and Replacement Program functions. Directs the Department of Environmental Quality (DEQ) to adopt rules including provisions for soliciting proposals, prioritizing projects, allocating funds, and reporting requirements. Authorizes DEQ to use federal funds, State appropriations, utility contributions, and other available sources to fund the programs.

Adds new GS 143B-344.47 enacting the Weatherization Assistance Program for Low-Income Families. Defines nine terms. Directs DEQ to solicit proposals for low-income weatherization programs from potential sponsors. Specifies proposal requirements and certain source limitations on sponsor match funds. Authorizes DEQ to accept, accept in part, or reject proposals. Authorizes DEQ to prioritize projects that maximize energy efficiency and the useable life of an affordable home and improve residents’ health and safety. Authorizes DEQ to consider local and State benefits, availability of funds from other sources, preservation of affordable housing, and balance of participation in proportion to population when allocating funds. Permits a sponsor to submit a proposal for community-scaled projects and requires a sponsor to identify priority communities to be served by the project, based on indicators determined by DEQ and specified categories. Authorizes DEQ to prioritize community-scaled project proposals serving areas with low-income households. Requires DEQ to approve or deny proposals within 90 days of receipt.

Effective December 1, 2026.

Appropriates $10 million for 2026-27 from the General Fund to DEQ for the Weatherization Assistance Program for Low-Income Families. States that up to 10% of these funds may be used for administrative costs. Effective July 1, 2026.