The timezone is UTC.
Almost all network services will use UTC for any time values used in the protocol. It's the industry standard.
From dir-spec.txt:
3.4. Exchanging votes
Authorities divide time into Intervals. Authority administrators SHOULD
try to all pick the same interval length, and SHOULD pick intervals that
are commonly used divisions of time (e.g., 5 minutes, 15 minutes, 30
minutes, 60 minutes, 90 minutes). Voting intervals SHOULD be chosen to
divide evenly into a 24-hour day.
Authorities SHOULD act according to interval and delays in the
latest consensus. Lacking a latest consensus, they SHOULD default to a
30-minute Interval, a 5 minute VotingDelay, and a 5 minute DistDelay.
Authorities MUST take pains to ensure that their clocks remain accurate
within a few seconds. (Running NTP is usually sufficient.)
The first voting period of each day begins at 00:00 (midnight) UTC. If
the last period of the day would be truncated by one-half or more, it is
merged with the second-to-last period.