diff --git a/fips.go b/fips.go
index 01ed2fb57..3f3bc68ef 100644
--- a/fips.go
+++ b/fips.go
@@ -1,13 +1,14 @@
 package notary
 
-import "os"
+import (
+	"crypto"
+	// Need to import md5 so can test availability.
+	_ "crypto/md5"
+)
 
-// FIPSEnvVar is the name of the environment variable that is being used to switch
-// between FIPS and non-FIPS mode
-const FIPSEnvVar = "GOFIPS"
-
-// FIPSEnabled returns true if environment variable `GOFIPS` has been set to enable
-// FIPS mode
+// FIPSEnabled returns true if running in FIPS mode.
+// If compiled in FIPS mode the md5 hash function is never available
+// even when imported. This seems to be the best test we have for it.
 func FIPSEnabled() bool {
-	return os.Getenv(FIPSEnvVar) != ""
+	return !crypto.MD5.Available()
 }
diff --git a/tuf/utils/x509.go b/tuf/utils/x509.go
index 7738418ac..4ebf83c2e 100644
--- a/tuf/utils/x509.go
+++ b/tuf/utils/x509.go
@@ -86,10 +86,6 @@ func X509PublicKeyID(certPubKey data.PublicKey) (string, error) {
 }
 
 func parseLegacyPrivateKey(block *pem.Block, passphrase string) (data.PrivateKey, error) {
-	if notary.FIPSEnabled() {
-		return nil, fmt.Errorf("%s not supported in FIPS mode", block.Type)
-	}
-
 	var privKeyBytes []byte
 	var err error
 	if x509.IsEncryptedPEMBlock(block) {
@@ -146,6 +142,10 @@ func parseLegacyPrivateKey(block *pem.Block, passphrase string) (data.PrivateKey
 // supports PKCS#8 as well as RSA/ECDSA (PKCS#1) only in non-FIPS mode and
 // attempts to decrypt using the passphrase, if encrypted.
 func ParsePEMPrivateKey(pemBytes []byte, passphrase string) (data.PrivateKey, error) {
+	return parsePEMPrivateKey(pemBytes, passphrase, notary.FIPSEnabled())
+}
+
+func parsePEMPrivateKey(pemBytes []byte, passphrase string, fips bool) (data.PrivateKey, error) {
 	block, _ := pem.Decode(pemBytes)
 	if block == nil {
 		return nil, errors.New("no valid private key found")
@@ -153,6 +153,9 @@ func ParsePEMPrivateKey(pemBytes []byte, passphrase string) (data.PrivateKey, er
 
 	switch block.Type {
 	case "RSA PRIVATE KEY", "EC PRIVATE KEY", "ED25519 PRIVATE KEY":
+		if fips {
+			return nil, fmt.Errorf("%s not supported in FIPS mode", block.Type)
+		}
 		return parseLegacyPrivateKey(block, passphrase)
 	case "ENCRYPTED PRIVATE KEY", "PRIVATE KEY":
 		if passphrase == "" {
@@ -433,6 +436,10 @@ func ED25519ToPrivateKey(privKeyBytes []byte) (data.PrivateKey, error) {
 
 // ExtractPrivateKeyAttributes extracts role and gun values from private key bytes
 func ExtractPrivateKeyAttributes(pemBytes []byte) (data.RoleName, data.GUN, error) {
+	return extractPrivateKeyAttributes(pemBytes, notary.FIPSEnabled())
+}
+
+func extractPrivateKeyAttributes(pemBytes []byte, fips bool) (data.RoleName, data.GUN, error) {
 	block, _ := pem.Decode(pemBytes)
 	if block == nil {
 		return "", "", errors.New("PEM block is empty")
@@ -440,7 +447,7 @@ func ExtractPrivateKeyAttributes(pemBytes []byte) (data.RoleName, data.GUN, erro
 
 	switch block.Type {
 	case "RSA PRIVATE KEY", "EC PRIVATE KEY", "ED25519 PRIVATE KEY":
-		if notary.FIPSEnabled() {
+		if fips {
 			return "", "", fmt.Errorf("%s not supported in FIPS mode", block.Type)
 		}
 	case "PRIVATE KEY", "ENCRYPTED PRIVATE KEY":
diff --git a/tuf/utils/x509_test.go b/tuf/utils/x509_test.go
index c8c5351b2..07fe36600 100644
--- a/tuf/utils/x509_test.go
+++ b/tuf/utils/x509_test.go
@@ -9,13 +9,11 @@ import (
 	"encoding/pem"
 	"fmt"
 	"io/ioutil"
-	"os"
 	"strings"
 	"testing"
 	"time"
 
 	"github.com/stretchr/testify/require"
-	"github.com/theupdateframework/notary"
 	"github.com/theupdateframework/notary/tuf/data"
 )
 
@@ -289,27 +287,13 @@ func TestECDSAX509PublickeyID(t *testing.T) {
 	require.Equal(t, tufPrivKey.ID(), tufID)
 }
 
-func preserveEnv(name string) func() {
-	if env, has := os.LookupEnv(name); has {
-		os.Unsetenv(name)
-		return func() {
-			os.Setenv(name, env)
-		}
-	}
-
-	return func() {}
-}
-
 func TestExtractPrivateKeyAttributes(t *testing.T) {
 	testExtractPrivateKeyAttributes(t)
 	testExtractPrivateKeyAttributesWithFIPS(t)
 }
 
 func testExtractPrivateKeyAttributes(t *testing.T) {
-	defer preserveEnv(notary.FIPSEnvVar)()
-
-	err := os.Unsetenv(notary.FIPSEnvVar)
-	require.NoError(t, err)
+	fips := false
 
 	testPKCS1PEM1 := getPKCS1KeyWithRole(t, "unicorn", "rainbow")
 	testPKCS1PEM2 := getPKCS1KeyWithRole(t, "docker", "")
@@ -317,61 +301,58 @@ func testExtractPrivateKeyAttributes(t *testing.T) {
 	testPKCS8PEM2 := getPKCS8KeyWithRole(t, "dagger", "")
 
 	// Try garbage bytes
-	_, _, err = ExtractPrivateKeyAttributes([]byte("Knock knock; it's Bob."))
+	_, _, err := extractPrivateKeyAttributes([]byte("Knock knock; it's Bob."), fips)
 	require.Error(t, err)
 
 	// PKCS#8
-	role, gun, err := ExtractPrivateKeyAttributes(testPKCS8PEM1)
+	role, gun, err := extractPrivateKeyAttributes(testPKCS8PEM1, fips)
 	require.NoError(t, err)
 	require.EqualValues(t, data.RoleName("fat"), role)
 	require.EqualValues(t, data.GUN("panda"), gun)
 
-	role, gun, err = ExtractPrivateKeyAttributes(testPKCS8PEM2)
+	role, gun, err = extractPrivateKeyAttributes(testPKCS8PEM2, fips)
 	require.NoError(t, err)
 	require.EqualValues(t, data.RoleName("dagger"), role)
 	require.EqualValues(t, data.GUN(""), gun)
 
 	// PKCS#1
-	role, gun, err = ExtractPrivateKeyAttributes(testPKCS1PEM1)
+	role, gun, err = extractPrivateKeyAttributes(testPKCS1PEM1, fips)
 	require.NoError(t, err)
 	require.EqualValues(t, data.RoleName("unicorn"), role)
 	require.EqualValues(t, data.GUN("rainbow"), gun)
 
-	role, gun, err = ExtractPrivateKeyAttributes(testPKCS1PEM2)
+	role, gun, err = extractPrivateKeyAttributes(testPKCS1PEM2, fips)
 	require.NoError(t, err)
 	require.EqualValues(t, data.RoleName("docker"), role)
 	require.EqualValues(t, data.GUN(""), gun)
 }
 
 func testExtractPrivateKeyAttributesWithFIPS(t *testing.T) {
-	defer preserveEnv(notary.FIPSEnvVar)()
-
-	err := os.Setenv(notary.FIPSEnvVar, "1")
-	require.NoError(t, err)
+	fips := true
 
 	testPKCS1PEM1 := getPKCS1KeyWithRole(t, "unicorn", "rainbow")
 	testPKCS1PEM2 := getPKCS1KeyWithRole(t, "docker", "")
 
 	// PKCS#1
-	_, _, err = ExtractPrivateKeyAttributes(testPKCS1PEM1)
+	_, _, err := extractPrivateKeyAttributes(testPKCS1PEM1, fips)
 	require.Error(t, err)
-	_, _, err = ExtractPrivateKeyAttributes(testPKCS1PEM2)
+	_, _, err = extractPrivateKeyAttributes(testPKCS1PEM2, fips)
 	require.Error(t, err)
 
 	testPKCS8PEM1 := getPKCS8KeyWithRole(t, "fat", "panda")
 	testPKCS8PEM2 := getPKCS8KeyWithRole(t, "dagger", "")
 
 	// Try garbage bytes
-	_, _, err = ExtractPrivateKeyAttributes([]byte("Knock knock; it's Bob."))
+	_, _, err = extractPrivateKeyAttributes([]byte("Knock knock; it's Bob."), fips)
 	require.Error(t, err)
 
 	// PKCS#8
-	role, gun, err := ExtractPrivateKeyAttributes(testPKCS8PEM1)
+	role, gun, err := extractPrivateKeyAttributes(testPKCS8PEM1, fips)
 	require.NoError(t, err)
 	require.EqualValues(t, data.RoleName("fat"), role)
 	require.EqualValues(t, data.GUN("panda"), gun)
 
-	role, gun, err = ExtractPrivateKeyAttributes(testPKCS8PEM2)
+	role, gun, err = extractPrivateKeyAttributes(testPKCS8PEM2, fips)
 	require.NoError(t, err)
 	require.EqualValues(t, data.RoleName("dagger"), role)
 	require.EqualValues(t, data.GUN(""), gun)
@@ -433,25 +414,19 @@ PBV11bfmoHzDVeeuz1ztFUb3WjR7xlQe09izY3o3N6yZlTFIsqawIg==
 }
 
 func testParsePEMPrivateKeyLegacy(t *testing.T, raw []byte) {
-	defer preserveEnv(notary.FIPSEnvVar)()
-
-	err := os.Unsetenv(notary.FIPSEnvVar)
-	require.NoError(t, err)
+	fips := false
 
-	key, err := ParsePEMPrivateKey(raw, "")
+	key, err := parsePEMPrivateKey(raw, "", fips)
 	require.NoError(t, err)
 	require.NotNil(t, key.Public())
 	require.NotNil(t, key.Private())
 }
 
 func testParsePEMPrivateKeyLegacyWithFIPS(t *testing.T, raw []byte) {
-	defer preserveEnv(notary.FIPSEnvVar)()
-
-	err := os.Setenv(notary.FIPSEnvVar, "1")
-	require.NoError(t, err)
+	fips := true
 
 	// No legacy key must be accepted in FIPS mode
-	_, err = ParsePEMPrivateKey(raw, "")
+	_, err := parsePEMPrivateKey(raw, "", fips)
 	require.Error(t, err)
 }