diff -r c42d297955e4 ruby.railsprojects/src/org/netbeans/modules/ruby/railsprojects/GenerateAction.java
--- a/ruby.railsprojects/src/org/netbeans/modules/ruby/railsprojects/GenerateAction.java	Tue Jan 12 10:24:50 2010 +0100
+++ b/ruby.railsprojects/src/org/netbeans/modules/ruby/railsprojects/GenerateAction.java	Tue Jan 12 16:17:58 2010 +0100
@@ -47,6 +47,8 @@
 import java.util.ArrayList;
 import java.util.Collections;
 import java.util.List;
+import java.util.HashMap;
+import java.util.Map;
 import java.util.concurrent.ExecutionException;
 import java.util.concurrent.Future;
 import java.util.logging.Level;
@@ -280,6 +282,8 @@
                             StatefulConvertor convertor = new StatefulConvertor(locator,
                                     RailsProjectGenerator.RAILS_GENERATOR_PATTERN, RubyLineConvertorFactory.EXT_RE, 2, -1);
                             String displayName = NbBundle.getMessage(GenerateAction.class, "RailsGenerator");
+			    Map<String, String> env = new HashMap<String, String>();
+			    env.put("RAILS_ENV", project.evaluator().getProperty(RailsProjectProperties.RAILS_ENV));
 
                             RubyExecutionDescriptor descriptor =
                                     new RubyExecutionDescriptor(RubyPlatform.platformFor(project), displayName, pwd, script)
@@ -288,6 +292,7 @@
                                     .addStandardRecognizers()
                                     .addOutConvertor(convertor)
                                     .addErrConvertor(convertor);
+                            descriptor.addAdditionalEnv(env);
 
                             RubyProcessCreator rpc = new RubyProcessCreator(descriptor, charsetName);
                             Future<Integer> execution =