diff --git a/agentstack/cli/cli.py b/agentstack/cli/cli.py
index 15b61676..bc5648c6 100644
--- a/agentstack/cli/cli.py
+++ b/agentstack/cli/cli.py
@@ -13,6 +13,8 @@
 import os
 import importlib.resources
 from cookiecutter.main import cookiecutter
+from dotenv import load_dotenv
+import subprocess
 
 from .agentstack_data import (
     FrameworkData,
@@ -184,8 +186,9 @@ def run_project(framework: str, path: str = ''):
         print(e)
         sys.exit(1)
 
+    load_dotenv(_path / '.env')  # explicitly load the project's .env file
     entrypoint = _path / frameworks.get_entrypoint_path(framework)
-    os.system(f'python {entrypoint}')
+    subprocess.run(['python', entrypoint], env=os.environ)
 
 
 def ask_framework() -> str:
diff --git a/agentstack/templates/crewai/{{cookiecutter.project_metadata.project_slug}}/src/main.py b/agentstack/templates/crewai/{{cookiecutter.project_metadata.project_slug}}/src/main.py
index bba6c84f..291a6177 100644
--- a/agentstack/templates/crewai/{{cookiecutter.project_metadata.project_slug}}/src/main.py
+++ b/agentstack/templates/crewai/{{cookiecutter.project_metadata.project_slug}}/src/main.py
@@ -2,8 +2,6 @@
 import sys
 from crew import {{cookiecutter.project_metadata.project_name|replace('-', '')|replace('_', '')|capitalize}}Crew
 import agentops
-from dotenv import load_dotenv
-load_dotenv()
 
 agentops.init(default_tags=['crewai', 'agentstack'])
 
diff --git a/agentstack/utils.py b/agentstack/utils.py
index de008489..0bb32f93 100644
--- a/agentstack/utils.py
+++ b/agentstack/utils.py
@@ -1,5 +1,5 @@
 from typing import Optional
-import sys
+import os, sys
 import json
 from ruamel.yaml import YAML
 import re
@@ -54,9 +54,16 @@ def get_framework(path: Optional[str] = None) -> str:
 
 
 def get_telemetry_opt_out(path: Optional[str] = None) -> bool:
+    """
+    Gets the telemetry opt out setting.
+    First checks the environment variable AGENTSTACK_TELEMETRY_OPT_OUT.
+    If that is not set, it checks the agentstack.json file.
+    """
     from agentstack.generation import ConfigFile
 
     try:
+        return bool(os.environ['AGENTSTACK_TELEMETRY_OPT_OUT'])
+    except KeyError:
         agentstack_config = ConfigFile(path)
         return bool(agentstack_config.telemetry_opt_out)
     except FileNotFoundError:
diff --git a/pyproject.toml b/pyproject.toml
index 1767a397..9c9f0ce4 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -28,6 +28,7 @@ dependencies = [
     "packaging==23.2",
     "requests>=2.32",
     "appdirs>=1.4.4",
+    "python-dotenv>=1.0.1",
 ]
 
 [project.optional-dependencies]
diff --git a/tests/test_generation_files.py b/tests/test_generation_files.py
index c5fae48b..a2baf5ef 100644
--- a/tests/test_generation_files.py
+++ b/tests/test_generation_files.py
@@ -66,11 +66,6 @@ def test_get_framework(self):
         with self.assertRaises(SystemExit) as _:
             get_framework(BASE_PATH / "missing")
 
-    def test_get_telemetry_opt_out(self):
-        assert get_telemetry_opt_out(BASE_PATH / "fixtures") is False
-        with self.assertRaises(SystemExit) as _:
-            get_telemetry_opt_out(BASE_PATH / "missing")
-
     def test_read_env(self):
         env = EnvFile(BASE_PATH / "fixtures")
         assert env.variables == {"ENV_VAR1": "value1", "ENV_VAR2": "value2"}
diff --git a/tests/test_project_run.py b/tests/test_project_run.py
new file mode 100644
index 00000000..787589da
--- /dev/null
+++ b/tests/test_project_run.py
@@ -0,0 +1,46 @@
+import os
+from pathlib import Path
+import shutil
+import unittest
+from parameterized import parameterized_class
+
+from agentstack import frameworks
+from agentstack.cli import run_project
+from agentstack.generation.files import ConfigFile
+
+BASE_PATH = Path(__file__).parent
+
+
+@parameterized_class([{"framework": framework} for framework in frameworks.SUPPORTED_FRAMEWORKS])
+class ProjectRunTest(unittest.TestCase):
+    def setUp(self):
+        self.project_dir = BASE_PATH / 'tmp' / self.framework
+
+        os.makedirs(self.project_dir)
+        os.makedirs(self.project_dir / 'src')
+        (self.project_dir / 'src' / '__init__.py').touch()
+
+        # set the framework in agentstack.json
+        shutil.copy(BASE_PATH / 'fixtures' / 'agentstack.json', self.project_dir / 'agentstack.json')
+        with ConfigFile(self.project_dir) as config:
+            config.framework = self.framework
+
+        # populate the entrypoint
+        entrypoint_path = frameworks.get_entrypoint_path(self.framework, self.project_dir)
+        shutil.copy(BASE_PATH / f"fixtures/frameworks/{self.framework}/entrypoint_max.py", entrypoint_path)
+
+        # write a basic .env file
+        shutil.copy(BASE_PATH / 'fixtures' / '.env', self.project_dir / '.env')
+
+    def tearDown(self):
+        shutil.rmtree(self.project_dir)
+
+    def test_run_project(self):
+        run_project(self.framework, self.project_dir)
+
+    def test_env_is_set(self):
+        """
+        After running a project, the environment variables should be set from project_dir/.env.
+        """
+        run_project(self.framework, self.project_dir)
+        assert os.getenv('ENV_VAR1') == 'value1'
diff --git a/tests/test_telemetry.py b/tests/test_telemetry.py
new file mode 100644
index 00000000..35f3c5fa
--- /dev/null
+++ b/tests/test_telemetry.py
@@ -0,0 +1,12 @@
+import os
+import unittest
+from agentstack.utils import get_telemetry_opt_out
+
+
+class TelemetryTest(unittest.TestCase):
+    def test_telemetry_opt_out_env_var_set(self):
+        AGENTSTACK_TELEMETRY_OPT_OUT = os.getenv("AGENTSTACK_TELEMETRY_OPT_OUT")
+        assert AGENTSTACK_TELEMETRY_OPT_OUT
+
+    def test_telemetry_opt_out_set_in_test_environment(self):
+        assert get_telemetry_opt_out()
diff --git a/tox.ini b/tox.ini
index 6733c3ab..fc41e805 100644
--- a/tox.ini
+++ b/tox.ini
@@ -13,4 +13,6 @@ deps =
     mypy: mypy
 commands =
     pytest -v
-    mypy: mypy agentops
\ No newline at end of file
+    mypy: mypy agentops
+setenv = 
+    AGENTSTACK_TELEMETRY_OPT_OUT = 1
\ No newline at end of file