hey courtnea ... i think you are trying to submit jobs through the interactive nodes. the interact/compute nodes are missing this ENV for a very specific reason.
you can only submit through the head node for now.
Wait are you getting this error on the head node, or on the compute nodes when you submit a job?
The variable shouldn't be set on the compute nodes or the interactive nodes, so please remove that from your submission scripts (infact you can remove the other one also, since thats not necessary anymore).
and you should be returning that path when you echo the variable, because that is what the variable is supposed to be.
What exactly are you doing thats throwing the error?