diff --git a/smart_control/reinforcement_learning/policies/schedule_policy.py b/smart_control/reinforcement_learning/policies/schedule_policy.py
index 375185b4..eaf0e6a3 100644
--- a/smart_control/reinforcement_learning/policies/schedule_policy.py
+++ b/smart_control/reinforcement_learning/policies/schedule_policy.py
@@ -80,6 +80,28 @@ def get_active_setpoint(
     return series.loc[prior_events[-1]]
 
 
+_HOURS_IN_DAY = 24
+
+
+def local_schedule_time(hod: float, utc_offset: pd.Timedelta) -> pd.Timedelta:
+  """Converts a UTC hour of day into the local time of day used by schedules.
+
+  A negative UTC offset pushes the early UTC hours before midnight (UTC hour 0
+  at -07:00 is -7 hours). Schedule events start between 0 and 24 hours, so
+  without wrapping, those times match no event and the lookup falls back to the
+  last event of the day, switching to the evening setpoints early.
+
+  Args:
+    hod: Hour of day of the simulator timestamp, in UTC, from 0 to 24.
+    utc_offset: Offset of the building's local time zone from UTC.
+
+  Returns:
+    The local time since midnight, from 0 up to but excluding 24 hours.
+  """
+  local = pd.Timedelta(hod, unit='hour') + utc_offset
+  return local % pd.Timedelta(_HOURS_IN_DAY, unit='hour')
+
+
 class SchedulePolicy(tf_policy.TFPolicy):
   """Policy that selects actions based on time-dependent schedules."""
 
@@ -152,9 +174,7 @@ def _get_action_map(self, time_step) -> Dict:  # pylint: disable=g-bare-generic
     hod = to_hod(hod_sin, hod_cos)
 
     # Create timestamp
-    timestamp = (
-        pd.Timedelta(hod, unit='hour') + self.local_start_time.utcoffset()
-    )
+    timestamp = local_schedule_time(hod, self.local_start_time.utcoffset())
 
     # Use appropriate schedule based on day type
     schedule = self.weekday_schedule if dow < 5 else self.weekend_schedule
diff --git a/smart_control/reinforcement_learning/policies/schedule_policy_test.py b/smart_control/reinforcement_learning/policies/schedule_policy_test.py
new file mode 100644
index 00000000..8a9adf1f
--- /dev/null
+++ b/smart_control/reinforcement_learning/policies/schedule_policy_test.py
@@ -0,0 +1,94 @@
+"""Tests for the schedule policy time handling."""
+
+import unittest
+
+import pandas as pd
+
+from smart_control.reinforcement_learning.policies import schedule_policy
+
+DAY = 'day'
+NIGHT = 'night'
+PDT = pd.Timedelta(hours=-7)
+IST = pd.Timedelta(hours=5, minutes=30)
+
+
+def _schedule():
+  """A schedule that switches to day at 6:00 and to night at 19:00."""
+  return [
+      schedule_policy.ScheduleEvent(
+          pd.Timedelta(6, unit='hour'),
+          schedule_policy.DeviceType.AC,
+          'supply_air_heating_temperature_setpoint',
+          DAY,
+      ),
+      schedule_policy.ScheduleEvent(
+          pd.Timedelta(19, unit='hour'),
+          schedule_policy.DeviceType.AC,
+          'supply_air_heating_temperature_setpoint',
+          NIGHT,
+      ),
+  ]
+
+
+def _setpoint_at_utc_hour(hod, utc_offset):
+  return schedule_policy.get_active_setpoint(
+      _schedule(),
+      schedule_policy.DeviceType.AC,
+      'supply_air_heating_temperature_setpoint',
+      schedule_policy.local_schedule_time(hod, utc_offset),
+  )
+
+
+class LocalScheduleTimeTest(unittest.TestCase):
+
+  def test_negative_offset_wraps_to_previous_evening(self):
+    # 00:00 UTC is 17:00 the previous day at UTC-7.
+    self.assertEqual(
+        schedule_policy.local_schedule_time(0, PDT),
+        pd.Timedelta(17, unit='hour'),
+    )
+
+  def test_offset_without_wrapping_is_unchanged(self):
+    # 13:00 UTC is 06:00 at UTC-7.
+    self.assertEqual(
+        schedule_policy.local_schedule_time(13, PDT),
+        pd.Timedelta(6, unit='hour'),
+    )
+
+  def test_local_midnight_is_zero(self):
+    self.assertEqual(
+        schedule_policy.local_schedule_time(7, PDT), pd.Timedelta(0)
+    )
+
+  def test_positive_offset_wraps_past_midnight(self):
+    # 20:00 UTC is 01:30 the next day at UTC+5:30.
+    self.assertEqual(
+        schedule_policy.local_schedule_time(20, IST),
+        pd.Timedelta(hours=1, minutes=30),
+    )
+
+
+class BaselineScheduleSwitchTest(unittest.TestCase):
+
+  def test_day_setpoint_holds_until_local_evening_start(self):
+    # 17:00 and 18:00 local are 00:00 and 01:00 UTC. They are still day.
+    self.assertEqual(_setpoint_at_utc_hour(0, PDT), DAY)
+    self.assertEqual(_setpoint_at_utc_hour(1, PDT), DAY)
+
+  def test_night_setpoint_starts_at_local_evening_start(self):
+    # 19:00 local is 02:00 UTC.
+    self.assertEqual(_setpoint_at_utc_hour(2, PDT), NIGHT)
+
+  def test_night_setpoint_holds_overnight(self):
+    # 23:00 local is 06:00 UTC, and local midnight is 07:00 UTC.
+    self.assertEqual(_setpoint_at_utc_hour(6, PDT), NIGHT)
+    self.assertEqual(_setpoint_at_utc_hour(7, PDT), NIGHT)
+
+  def test_day_setpoint_starts_at_local_morning_start(self):
+    # 06:00 local is 13:00 UTC, and 16:00 local is 23:00 UTC.
+    self.assertEqual(_setpoint_at_utc_hour(13, PDT), DAY)
+    self.assertEqual(_setpoint_at_utc_hour(23, PDT), DAY)
+
+
+if __name__ == '__main__':
+  unittest.main()