diff --git a/lib/compass/configuration.rb b/lib/compass/configuration.rb
index db412ed4..12c7a306 100644
--- a/lib/compass/configuration.rb
+++ b/lib/compass/configuration.rb
@@ -143,7 +143,7 @@ module Compass
       end
       plugin_opts = {:template_location => locations}
       plugin_opts[:style] = output_style if output_style
-      engine_opts[:line_comments] = default_line_comments if environment
+      plugin_opts[:line_comments] = default_line_comments if environment
       plugin_opts
     end
 
diff --git a/lib/compass/installers/rails.rb b/lib/compass/installers/rails.rb
index 06b4190f..44dc9099 100644
--- a/lib/compass/installers/rails.rb
+++ b/lib/compass/installers/rails.rb
@@ -83,6 +83,7 @@ Emit compiled stylesheets to #{recommended_location}/? (Y/n) }
         %Q{require 'compass'
 # If you have any compass plugins, require them here.
 Compass.configuration.parse(File.join(RAILS_ROOT, "config", "compass.config"))
+Compass.configuration.environment = RAILS_ENV.to_sym
 Compass.configure_sass_plugin!
 }
       end