diff --git a/cime_config/cesm/machines/config_batch.xml b/cime_config/cesm/machines/config_batch.xml
index 9075edd83ae..1d4752bb677 100644
--- a/cime_config/cesm/machines/config_batch.xml
+++ b/cime_config/cesm/machines/config_batch.xml
@@ -75,6 +75,7 @@
       <!-- <directive> -j oe {{ output_error_path }} </directive> -->
       <directive> -j oe </directive>
       <directive default="ae"  > -m {{ mail_options }} </directive>
+      <directive> -V </directive>
     </directives>
   </batch_system>
 
diff --git a/cime_config/cesm/machines/config_machines.xml b/cime_config/cesm/machines/config_machines.xml
index bc3cff7a0ef..1d4e3b786d4 100644
--- a/cime_config/cesm/machines/config_machines.xml
+++ b/cime_config/cesm/machines/config_machines.xml
@@ -506,10 +506,13 @@
     <!-- pbs is for crays.. -->
     <batch_system type="pbs" version="x.y">
       <queues>
-	<queue walltimemax="00:30:00" jobmin="1" jobmax="512" default="true">debug</queue>
+        <queue walltimemax="48:00:00" jobmin="1" jobmax="16368" >regular</queue>
+        <queue walltimemax="36:00:00" jobmin="98304" jobmax="49152" >regular</queue>
+        <queue walltimemax="12:00:00" jobmin="98305" jobmax="131088" default="true">regular</queue>
+	<queue walltimemax="00:30:00" jobmin="1" jobmax="512">debug</queue>
       </queues>
       <walltimes>
-	<walltime default="true">01:15:00</walltime>
+	<walltime default="true">00:30:00</walltime>
 	<walltime ccsm_estcost="1">01:50:00</walltime>
 	<walltime ccsm_estcost="3">05:00:00</walltime>
       </walltimes>
@@ -999,6 +1002,7 @@
     <SUPPORTED_BY>   mickelso -at- mcs.anl.gov</SUPPORTED_BY>
     <GMAKE_J>4</GMAKE_J>
     <MAX_TASKS_PER_NODE>64</MAX_TASKS_PER_NODE>
+    <PES_PER_NODE>8</PES_PER_NODE>
     <PROJECT_REQUIRED>TRUE</PROJECT_REQUIRED>
     <batch_system type="cobalt">
       <queues>
diff --git a/scripts/Testing/Testcases/PET_build.csh b/scripts/Testing/Testcases/PET_build.csh
index 7aa5c8f8448..f54499a9e63 100644
--- a/scripts/Testing/Testcases/PET_build.csh
+++ b/scripts/Testing/Testcases/PET_build.csh
@@ -26,35 +26,35 @@ set NTHRDS_CPL  = `./xmlquery NTHRDS_CPL  -value`
 
 if ( $NTHRDS_ATM <= 1) then
   echo "WARNING: component ATM is not threaded, changing NTHRDS_ATM to 2" 
-  xmlchange -file env_mach_pes.xml -id NTHRDS_ATM -val 2
+  ./xmlchange -file env_mach_pes.xml -id NTHRDS_ATM -val 2
 endif
 if ( $NTHRDS_LND <= 1) then
   echo "WARNING: component LND is not threaded, changing NTHRDS_LND to 2" 
-  xmlchange -file env_mach_pes.xml -id NTHRDS_LND -val 2
+  ./xmlchange -file env_mach_pes.xml -id NTHRDS_LND -val 2
 endif
 if ( $NTHRDS_ROF <= 1) then
   echo "WARNING: component ROF is not threaded, changing NTHRDS_ROF to 2" 
-  xmlchange -file env_mach_pes.xml -id NTHRDS_ROF -val 2
+  ./xmlchange -file env_mach_pes.xml -id NTHRDS_ROF -val 2
 endif
 if ( $NTHRDS_ICE <= 1) then
   echo "WARNING: component ICE is not threaded, changing NTHRDS_ICE to 2" 
-  xmlchange -file env_mach_pes.xml -id NTHRDS_ICE -val 2
+  ./xmlchange -file env_mach_pes.xml -id NTHRDS_ICE -val 2
 endif
 if ( $NTHRDS_OCN <= 1) then
   echo "WARNING: component OCN is not threaded, changing NTHRDS_OCN to 2" 
-  xmlchange -file env_mach_pes.xml -id NTHRDS_OCN -val 2
+  ./xmlchange -file env_mach_pes.xml -id NTHRDS_OCN -val 2
 endif
 if ( $NTHRDS_GLC <= 1) then
   echo "WARNING: component GLC is not threaded, changing NTHRDS_GOC to 2" 
-  xmlchange -file env_mach_pes.xml -id NTHRDS_GLC -val 2
+  ./xmlchange -file env_mach_pes.xml -id NTHRDS_GLC -val 2
 endif
 if ( $NTHRDS_CPL <= 1) then
   echo "WARNING: component CPL is not threaded, changing NTHRDS_CPL to 2" 
-  xmlchange -file env_mach_pes.xml -id NTHRDS_CPL -val 2
+  ./xmlchange -file env_mach_pes.xml -id NTHRDS_CPL -val 2
 endif
 if ( $NTHRDS_WAV <= 1) then
   echo "WARNING: component WAV is not threaded, changing NTHRDS_WAV to 2" 
-  xmlchange -file env_mach_pes.xml -id NTHRDS_WAV -val 2
+  ./xmlchange -file env_mach_pes.xml -id NTHRDS_WAV -val 2
 endif
 
 cp -f env_mach_pes.xml env_mach_pes.xml.1
diff --git a/scripts/create_test b/scripts/create_test
index fac1f871fc3..8ffe3eade1c 100755
--- a/scripts/create_test
+++ b/scripts/create_test
@@ -1392,13 +1392,13 @@ sub testcaseSetup
     #&Debug("XMLVARS:");
     #&Debug( eval { Dumper \%xmlvars} );
 
-    chdir($caseroot); 
-
     my $cwd = getcwd();
     chdir ($caseroot);
     foreach my $attr(keys %xmlvars)
     {
+        &Debug("attr $attr $xmlvars{$attr}\n");
 	$xmlvars{$attr} = SetupTools::expand_xml_var($xmlvars{$attr}, \%xmlvars);
+        &Debug("setting $xmlvars{$attr}\n");
     }
     chdir ($cwd);
 
@@ -1419,6 +1419,7 @@ sub testcaseSetup
     }
 
     print "Setting up test case \n";
+    chdir ($caseroot);
     $sysmod = "./case_setup";
     &Debug("sysmod is $sysmod");
     system($sysmod) == 0 or warn "$sysmod failed: $?\n";
diff --git a/utils/perl5lib/Config/SetupTools.pm b/utils/perl5lib/Config/SetupTools.pm
index 6ae64625c55..52aeee43b7f 100644
--- a/utils/perl5lib/Config/SetupTools.pm
+++ b/utils/perl5lib/Config/SetupTools.pm
@@ -51,13 +51,13 @@ sub expand_env
 {
     my ($value, $xmlvars_ref) = @_;
 
-    if ($value =~ /\$ENV\{*([\w_]+)}*(.*)$/) {
+    if ($value =~ /\$\{*([\w_]+)}*(.*)$/) {
        my $subst = $xmlvars_ref->{$1};
        $subst = $ENV{$1} unless defined $subst;
-       $value =~ s/\$ENV\{*${1}\}*/$subst/g;
+       $value =~ s/\$\{*${1}\}*/$subst/g;
     }
     
-    if ($value =~ /\$ENV\{*[\w_]+\}*.*$/) {
+    if ($value =~ /\$\{*[\w_]+\}*.*$/) {
 	$value = expand_env($value, $xmlvars_ref) 
     }
     return $value; 
@@ -68,6 +68,11 @@ sub expand_xml_var
 {
     my ($value, $xmlvars_ref) = @_;
 
+    if($value =~ /\$ENV\{(.*)\}/){
+	my $subst = $ENV{$1};
+	die "No environment variable found for $1" unless(defined $subst);
+	$value =~ s/\$ENV\{*${1}\}/$subst/g;
+    }
     if ($value =~ /\$\{*([\w_]+)}*(.*)$/) {
 	my $found_xml;
 	while ( my ($key, $subst) = each(%$xmlvars_ref) ) {