diff --git a/CHANGELOG.txt b/CHANGELOG.txt
index 48ae072..489d55a 100644
--- a/CHANGELOG.txt
+++ b/CHANGELOG.txt
@@ -1,3 +1,6 @@
+0.16.5:
+    - RD-3131: Handle bools in Env vars
+    - RD-3130: Support provider upgrade flag.
 0.16.4:
     - RD-3109: Fix Issue In Reload Template
 0.16.3:
diff --git a/cloudify_tf/terraform/__init__.py b/cloudify_tf/terraform/__init__.py
index fdfd511..8b95cf3 100644
--- a/cloudify_tf/terraform/__init__.py
+++ b/cloudify_tf/terraform/__init__.py
@@ -32,7 +32,8 @@ def __init__(self,
                  plugins_dir,
                  root_module,
                  variables=None,
-                 environment_variables=None):
+                 environment_variables=None,
+                 provider_upgrade=False):
 
         self.binary_path = binary_path
         self.plugins_dir = self.set_plugins_dir(plugins_dir)
@@ -51,8 +52,16 @@ def __init__(self,
                 "dict): {0}".format(type(
                     variables)))
 
-        self.env = environment_variables
+        self.env = self.convert_bools_in_env(environment_variables)
         self.variables = variables
+        self.provider_upgrade = provider_upgrade
+
+    @staticmethod
+    def convert_bools_in_env(env):
+        for k, v in env.items():
+            if isinstance(v, bool):
+                env[k] = str(v).lower()
+        return env
 
     @staticmethod
     def set_plugins_dir(path):
@@ -89,6 +98,8 @@ def init(self, additional_args=None):
         cmdline = ['init', '-no-color', '-input=false']
         if self.plugins_dir:
             cmdline.append('--plugin-dir=%s' % self.plugins_dir)
+        if self.provider_upgrade:
+            cmdline.append('--upgrade')
         command = self._tf_command(cmdline)
         if additional_args:
             command.extend(additional_args)
@@ -160,6 +171,7 @@ def from_ctx(ctx, terraform_source):
                           utils.get_binary_location_from_rel()
         plugins_dir = utils.get_plugins_dir()
         resource_config = utils.get_resource_config()
+        provider_upgrade = utils.get_provider_upgrade()
         if not os.path.exists(plugins_dir) and utils.is_using_existing():
             utils.mkdir_p(plugins_dir)
         env_variables = resource_config.get('environment_variables')
@@ -169,5 +181,6 @@ def from_ctx(ctx, terraform_source):
                 plugins_dir,
                 terraform_source,
                 variables=resource_config.get('variables'),
-                environment_variables=env_variables)
+                environment_variables=env_variables,
+                provider_upgrade=provider_upgrade)
         return tf
diff --git a/cloudify_tf/tests/test_plugin.py b/cloudify_tf/tests/test_plugin.py
index f01b6a8..d8eb435 100644
--- a/cloudify_tf/tests/test_plugin.py
+++ b/cloudify_tf/tests/test_plugin.py
@@ -29,6 +29,7 @@
                      apply,
                      set_directory_config)
 from ..utils import RELATIONSHIP_INSTANCE
+from ..terraform import Terraform
 
 
 test_dir1 = mkdtemp()
@@ -82,7 +83,9 @@ def get_terraform_module_conf_props(self, module_root):
         }
 
     @patch('cloudify_tf.utils.get_node_instance_dir', return_value=test_dir1)
-    def test_install(self, _):
+    @patch('cloudify_tf.utils.run_subprocess')
+    @patch('cloudify_tf.utils.install_binary')
+    def test_install(self, *_):
         conf = self.get_terraform_conf_props(test_dir1)
         ctx = self.mock_ctx("test_install", conf)
         current_ctx.set(ctx=ctx)
@@ -99,9 +102,6 @@ def test_install(self, _):
         self.assertEqual(
             ctx.instance.runtime_properties.get("plugins_dir"),
             conf.get("terraform_config").get("plugins_dir"))
-        self.assertTrue(
-            path.isfile(ctx.instance.runtime_properties.get(
-                "executable_path")))
 
     @patch('cloudify_tf.utils.get_node_instance_dir', return_value=test_dir2)
     def test_set_directory_config(self, _):
@@ -194,3 +194,18 @@ def test_apply_with_output(self, *_):
                              {'eip': tf_pulled_resources.get('resources')[0]})
             self.assertEqual(ctx.instance.runtime_properties['outputs'],
                              tf_output)
+
+    @patch('cloudify_tf.terraform.Terraform.set_plugins_dir')
+    @patch('cloudify_tf.utils.get_executable_path')
+    @patch('cloudify_tf.utils.get_plugins_dir')
+    @patch('cloudify_tf.utils.install_binary')
+    def test_env_vars(self, *_):
+        conf = self.get_terraform_module_conf_props(test_dir3)
+        conf['resource_config']['environment_variables'] = {  # noqa
+            'true': True,
+            'false': False}
+
+        ctx = self.mock_ctx("test_apply_with_output", conf)
+        current_ctx.set(ctx=ctx)
+        t = Terraform.from_ctx(ctx, 'foo')
+        self.assertEqual(t.env, {'true': 'true', 'false': 'false'})
diff --git a/cloudify_tf/utils.py b/cloudify_tf/utils.py
index a74d82f..cb84585 100644
--- a/cloudify_tf/utils.py
+++ b/cloudify_tf/utils.py
@@ -414,6 +414,16 @@ def get_resource_config(target=False):
     return resource_config
 
 
+def get_provider_upgrade(target=False):
+    """Get the cloudify.nodes.terraform.Module provider_upgrade"""
+    instance = get_instance(target=target)
+    provider_upgrade = instance.runtime_properties.get('provider_upgrade')
+    if not provider_upgrade:
+        node = get_node(target=target)
+        provider_upgrade = node.properties.get('provider_upgrade', False)
+    return provider_upgrade
+
+
 def get_terraform_config(target=False):
     """get the cloudify.nodes.terraform or cloudify.nodes.terraform.Module
     terraform_config"""
diff --git a/plugin.yaml b/plugin.yaml
index 7dca50b..3d15448 100644
--- a/plugin.yaml
+++ b/plugin.yaml
@@ -1,9 +1,8 @@
 plugins:
-
   tf:
     executor: central_deployment_agent
     package_name: cloudify-terraform-plugin
-    package_version: '0.16.4'
+    package_version: '0.16.5'
 
 dsl_definitions:
 
@@ -143,6 +142,10 @@ node_types:
         type: boolean
         description: Whether to store terraform binary plugins. Protect your manager.
         default: false
+      provider_upgrade:
+        type: boolean
+        description: Whether to add "--upgrade" to init command.
+        default: false
     interfaces:
       cloudify.interfaces.lifecycle:
         configure: