diff --git a/lib/moduleEncoding.js b/lib/moduleEncoding.js
index 1caafb7..11665f5 100644
--- a/lib/moduleEncoding.js
+++ b/lib/moduleEncoding.js
@@ -24,7 +24,10 @@ const path = require('path');
 
 const DEFAULT_START_ALIGNMENT = 8;
 
-const MAX_ENV_VARS_ASSET_DATA_SIZE = 16 * 1024;
+const ENV_ASSET_NAME = 'env';
+const ENV_JSON_FILE = 'env.json';
+
+const MAX_ENV_SIZE = 16 * 1024;
 
 function moduleFunctionToString(func) {
 	switch (func) {
@@ -1285,7 +1288,7 @@ async function createApplicationAndAssetBundle(application, assets, vars) {
 		assets ||= [];
 		assets.push({
 			data: varsAsset,
-			name: 'env-vars'
+			name: ENV_ASSET_NAME
 		});
 	}
 
@@ -1330,7 +1333,7 @@ async function createApplicationAndAssetBundle(application, assets, vars) {
 				archive.append(asset.data, { name: `assets/${asset.name}` });
 			}
 			if (vars) {
-				archive.append(JSON.stringify(vars, null, 2), { name: 'env/env-vars.json' });
+				archive.append(JSON.stringify(vars, null, 2), { name: ENV_JSON_FILE });
 			}
 			output.on('close', resolve);
 			archive.on('error', reject);
@@ -1391,19 +1394,16 @@ async function unpackApplicationAndAssetBundle(bundle) {
 						name: path.basename(entry.path),
 						data: data
 					});
-				} else if (dir === 'env') {
-					if (result.vars) {
-						throw new RangeError('More env vars than expected in a bundle');
-					}
+				} else if (entry.path === ENV_JSON_FILE) {
 					try {
-						result.vars = {
+						result.env = {
 							name: entry.path,
 							data: JSON.parse(data.toString('utf-8'))
 						};
 					} catch (err) {
-						reject(new Error(`Env vars file at ${entry.path} is invalid: ${err.message}`));
+						reject(new Error(`Env file at ${entry.path} is invalid: ${err.message}`));
 					}
-				} else if (dir === '.') {
+				} else if (dir === '.' && path.extname(entry.path) === '.bin') {
 					if (result.application) {
 						throw new RangeError('More applications than expected in a bundle');
 					}
@@ -1688,7 +1688,9 @@ async function encodeEnvVarsAsset(vars, snapshot = undefined) {
 	if (!vars || typeof vars !== 'object') {
 		throw new Error('Expected variable values to be an object');
 	}
-	let approxSize = 0;
+	if (JSON.stringify(vars).length > MAX_ENV_SIZE) {
+		throw new Error('Asset exceeds the maximum size');
+	}
 	for (const [name, val] of Object.entries(vars)) {
 		if (name.length > 128) {
 			throw new Error(`Variable name is too long: ${name.slice(0, 30)}...`);
@@ -1699,10 +1701,6 @@ async function encodeEnvVarsAsset(vars, snapshot = undefined) {
 		if (typeof val !== 'string') {
 			throw new Error(`Variable value is not a string: ${name}`);
 		}
-		approxSize += name.length + val.length;
-		if (approxSize > MAX_ENV_VARS_ASSET_DATA_SIZE) {
-			throw new Error('Asset exceeds the maximum size');
-		}
 	}
 	let hash;
 	let updatedAt;
@@ -1732,11 +1730,6 @@ async function encodeEnvVarsAsset(vars, snapshot = undefined) {
 		hash,
 		updatedAt
 	})).finish();
-
-	if (assetData.length > MAX_ENV_VARS_ASSET_DATA_SIZE) {
-		throw new Error('Asset exceeds the maximum size');
-	}
-
 	return assetData;
 }
 
@@ -1755,9 +1748,6 @@ async function encodeEnvVarsAsset(vars, snapshot = undefined) {
 async function createEnvVarsAssetModule(vars, snapshot = undefined) {
 	let assetData;
 	if (Buffer.isBuffer(vars)) {
-		if (vars.length > MAX_ENV_VARS_ASSET_DATA_SIZE) {
-			throw new Error('Asset exceeds the maximum size');
-		}
 		if (snapshot) {
 			throw new Error('Cannot set snapshot details in already encoded asset data');
 		}
@@ -1766,7 +1756,7 @@ async function createEnvVarsAssetModule(vars, snapshot = undefined) {
 		assetData = await encodeEnvVarsAsset(vars, snapshot);
 	}
 
-	const assetModule = await createAssetModule(assetData, 'env-vars', {
+	const assetModule = await createAssetModule(assetData, ENV_ASSET_NAME, {
 		type: snapshot ? ModuleInfo.AssetType.ENV_VARS_SNAPSHOT : ModuleInfo.AssetType.ENV_VARS_APP,
 		compress: false
 	});
@@ -1797,5 +1787,8 @@ module.exports = {
 	removeModuleExtensions,
 	listModuleExtensions,
 	encodeEnvVarsAsset,
-	createEnvVarsAssetModule
+	createEnvVarsAssetModule,
+	ENV_ASSET_NAME,
+	ENV_JSON_FILE,
+	MAX_ENV_SIZE
 };
diff --git a/specs/lib/moduleEncoding.spec.js b/specs/lib/moduleEncoding.spec.js
index ae70ebc..5f921e6 100644
--- a/specs/lib/moduleEncoding.spec.js
+++ b/specs/lib/moduleEncoding.spec.js
@@ -742,7 +742,7 @@ describe('moduleEncoding', () => {
 			const app = path.join(TEST_BINARIES_PATH, 'tracker-tinker@5.3.1.bin');
 			const bundle = await createApplicationAndAssetBundle(app, [], vars);
 			const unpacked = await unpackApplicationAndAssetBundle(bundle);
-			expect(unpacked.vars.data).be.eql(vars);
+			expect(unpacked.env.data).be.eql(vars);
 			expect(unpacked.assets.length).be.eql(1);
 		});
 	});
@@ -920,7 +920,7 @@ describe('moduleEncoding', () => {
 			const extensions = info.suffixInfo.extensions;
 			let ext = findExtension(ModuleInfo.ExtensionType.NAME, extensions);
 			expect(ext).to.include({
-				name: 'env-vars'
+				name: 'env'
 			});
 			ext = findExtension(ModuleInfo.ExtensionType.ASSET_TYPE, extensions);
 			expect(ext).to.include({