“UnboundLocalError: local variable referenced before assignment” after an if statement

Your if statement is always false and T gets initialized only if a condition is met, so the code doesn’t reach the point where T gets a value (and by that, gets defined/bound). You should introduce the variable in a place that always gets executed.

Try:

def temp_sky(lreq, breq):
    T = <some_default_value> # None is often a good pick
    for line in tfile:
        data = line.split()
        if abs(float(data[0])-lreq) <= 0.1 and abs(float(data[1])-breq) <= 0.1:
            T = data[2]
    return T

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