diff --git a/agent_starter_pack/deployment_targets/cloud_run/python/tests/integration/test_server_e2e.py b/agent_starter_pack/deployment_targets/cloud_run/python/tests/integration/test_server_e2e.py
index 0ce38eea..7cd2ae12 100644
--- a/agent_starter_pack/deployment_targets/cloud_run/python/tests/integration/test_server_e2e.py
+++ b/agent_starter_pack/deployment_targets/cloud_run/python/tests/integration/test_server_e2e.py
@@ -690,9 +690,8 @@ def cleanup_agent_engine_sessions() -> None:
 
     try:
         # Use same environment variable as server, default to project name
-        agent_name = os.environ.get(
-            "AGENT_ENGINE_SESSION_NAME", "{{cookiecutter.project_name}}"
-        )
+        default_agent_name = "{{cookiecutter.project_name}}"
+        agent_name = os.environ.get("AGENT_ENGINE_SESSION_NAME", default_agent_name)
 
         # Find and delete agent engines with this name
         existing_agents = list(agent_engines.list(filter=f"display_name={agent_name}"))
diff --git a/agent_starter_pack/deployment_targets/cloud_run/python/{{cookiecutter.agent_directory}}/fast_api_app.py b/agent_starter_pack/deployment_targets/cloud_run/python/{{cookiecutter.agent_directory}}/fast_api_app.py
index 53a34922..f002a1a3 100644
--- a/agent_starter_pack/deployment_targets/cloud_run/python/{{cookiecutter.agent_directory}}/fast_api_app.py
+++ b/agent_starter_pack/deployment_targets/cloud_run/python/{{cookiecutter.agent_directory}}/fast_api_app.py
@@ -437,9 +437,8 @@ async def lifespan(app_instance: FastAPI) -> AsyncIterator[None]:
     session_service_uri = None
 else:
     # Use environment variable for agent name, default to project name
-    agent_name = os.environ.get(
-        "AGENT_ENGINE_SESSION_NAME", "{{cookiecutter.project_name}}"
-    )
+    default_agent_name = "{{cookiecutter.project_name}}"
+    agent_name = os.environ.get("AGENT_ENGINE_SESSION_NAME", default_agent_name)
 
     # Check if an agent with this name already exists
     existing_agents = list(agent_engines.list(filter=f"display_name={agent_name}"))
diff --git a/pyproject.toml b/pyproject.toml
index 0e94e6d9..38129435 100644
--- a/pyproject.toml
+++ b/pyproject.toml
@@ -1,6 +1,6 @@
 [project]
 name = "agent-starter-pack"
-version = "0.31.3"
+version = "0.31.4"
 description = "CLI to bootstrap production-ready Google Cloud GenAI agent projects from templates."
 authors = [
     { name = "Google LLC", email = "agent-starter-pack@google.com" },
diff --git a/uv.lock b/uv.lock
index 704ab0f1..24313fa0 100644
--- a/uv.lock
+++ b/uv.lock
@@ -11,7 +11,7 @@ resolution-markers = [
 
 [[package]]
 name = "agent-starter-pack"
-version = "0.31.3"
+version = "0.31.4"
 source = { editable = "." }
 dependencies = [
     { name = "backoff" },