Does this work for the Weather module? Thanks.

Yes and no. It's complicated lol

Daylight savings are always taken into account on anything having to do with UTC time. HOWEVER, some feeds report observation times not in UTC format but in the local time, making it nearly impossible to accurately convert this time to your system's time zone/daylight savings zone.

The weather module does make a feeble try based on an internal table of time zones per country, but that fails spectacularly on countries spanning more than one time zone or with different daylight savings periods.