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+# A more sensible Collector environment variable resolution
+
+## Overview
+
+The OpenTelemetry Collector supports three different syntaxes for
+environment variable resolution which differ in their syntax, semantics
+and allowed variable names. Before we stabilize confmap, we need to
+address several issues related to environment variables. This document
+describes: the current (as of v0.96.0) behavior of the Collector, the
+goals that an environment variable resolution should aim for, existing
+deviations from these goals and the desired behavior after making some
+changes.
+
+CLI environment variable resolution has a single syntax (`--config env:ENV`) 
+and it is considered out of scope for this document, focusing
+instead on expansion within the Collector configuration.
+
+How to get from the current to desired behavior is also considered out
+of scope and will be discussed on individual PRs. It will likely involve
+one or multiple feature gates, warnings and transition periods.
+
+## Goals of an expansion system
+
+The following are considered goals of the expansion system:
+
+1.  ***Expansion should happen only when the user expects it***. We
+    should aim to expand when the user expects it and keep the original
+    value when we don't (e.g. because the syntax is used for something
+    different).
+2.  ***Expansion should have predictable behavior***.
+3.  ***Multiple expansion methods, if present, should have similar behavior.***
+    Switching from `${env:ENV}` to `${ENV}` or vice versa
+    should not lead to (too many?) surprises.
+4.  ***When the syntax overlaps, expansion should be aligned with*** 
+    [***the expansion defined by the Configuration Working Group***](https://github.com/open-telemetry/opentelemetry-specification/blob/032213cedde54a2171dfbd234a371501a3537919/specification/configuration/file-configuration.md#environment-variable-substitution).
+
+## Current behavior
+
+The Collector supports three different syntaxes for environment variable
+resolution:
+
+1.  The *naked syntax*, `$ENV`.
+2.  The *braces syntax*, `${ENV}`.
+3.  The *env provider syntax*, `${env:ENV}`.
+
+These differ in the character set allowed for environment variable names
+as well as the type of parsing they return. Escaping is supported in all
+syntaxes by using two dollar signs.
+
+### Type casting rules
+
+A provider or converter takes a string and returns some sort of value
+after potentially doing some parsing. This gets stored in a
+confmap.Conf. When unmarshalling, we use mapstructure with
+WeaklyTypedInput enabled, which does a lot of implicit casting. The
+details of this type casting are complex and are outlined on issue
+[#9532](https://github.com/open-telemetry/opentelemetry-collector/issues/9532).
+
+When using this notation in inline mode (e.g.
+`http://endpoint/${env:PATH}`) we also do manual implicit type
+casting with a similar approach to mapstructure. These are outlined
+[here](https://github.com/open-telemetry/opentelemetry-collector/blob/fc4c13d3c2822bec39fa9d9658836d1a020c6844/confmap/expand.go#L124-L139).
+
+### Naked syntax
+
+The naked syntax is supported via the expand converter. It is
+implemented using the [`os.Expand`](https://pkg.go.dev/os#Expand) stdlib
+function. This syntax supports identifiers made up of:
+
+1.   ASCII alphanumerics and the `_` character
+2.  Certain special characters if they appear alone typically used in
+    Bash: `*`, `#`, `$`, `@`, `!`, `?` and `-`.
+
+You can see supported identifiers in this example:
+[`go.dev/play/p/YfxLtYbsL6j`](https://go.dev/play/p/YfxLtYbsL6j).
+
+The environment variable value is taken as-is and the type is always
+string.
+
+### Braces syntax
+
+The braces syntax is supported via the expand converter. It is also
+implemented using the os.Expand stdlib function. This syntax supports
+any identifiers that don't contain `}`. Again, refer to the os.Expand
+example to see how it works in practice:
+[`go.dev/play/p/YfxLtYbsL6j`](https://go.dev/play/p/YfxLtYbsL6j).
+
+The environment variable value is taken as-is and the type is always
+string.
+
+### `env` provider
+
+The `env` provider syntax is supported via (you guessed it) the `env`
+provider. Its implementation is custom made. This syntax supports any
+identifier that does not have a $ in it, to support recursive
+resolution (e.g. `${env:${http://example.com}}` would get the
+environment variable whose name is stored in the URL
+`http://example.com`).
+
+The environment variable value is parsed by the yaml.v3 parser to an
+any-typed variable. The yaml.v3 parser mostly follows the YAML v1.2
+specification with [*some exceptions*](https://github.com/go-yaml/yaml#compatibility). 
+You can see
+how it works for some edge cases in this example:
+[`go.dev/play/p/RtPmH8aZA1X`](https://go.dev/play/p/RtPmH8aZA1X).
+
+### Issues of current behavior
+
+#### Unintuitive behavior on unset environment variables
+
+When an environment variable is empty, all syntaxes return an empty
+string with no warning given; this is frequently unexpected but can also
+be used intentionally. This is especially unintuitive when the user did
+not expect expansion to happen. Two examples where this is unexpected
+are the following:
+
+1.  **Opaque values such as passwords that contain `$`** (issue
+    [#8215](https://github.com/open-telemetry/opentelemetry-collector/issues/8215)).
+    If the $ is followed by an alphanumeric character or one of the
+    special characters, it's going to lead to false positives.
+2.  **Prometheus relabel config** (issue
+    [`contrib#9984`](https://github.com/open-telemetry/opentelemetry-collector-contrib/issues/9984)).
+    Prometheus uses `${1}` in some of its configuration values. We
+    resolve this to the value of the environment variable with name
+    '`1`'.
+3.  **Other uses of $** (issue
+    [`contrib#11846`](https://github.com/open-telemetry/opentelemetry-collector-contrib/issues/11846)).
+    If a product requires the use of `$` in some field, we would most
+    likely interpret it as an environment variable. This is not
+    intuitive for users.
+
+#### Unexpected type casting
+
+When using the env syntax we parse its value as YAML. Even if you are
+familiar with YAML, because of the implicit type casting rules and the
+way we store intermediate values, we can get unintuitive results.
+
+The most clear example of this is issue
+[*#8565*](https://github.com/open-telemetry/opentelemetry-collector/issues/8565):
+When setting a variable to value `0123` and using it in a string-typed
+field, it will end up as the string `"83"` (where as the user would
+expect the string to be `0123`).
+
+#### We are less restrictive than the Configuration WG
+
+The Configuration WG defines an [*environment variable expansion feature
+for SDK
+configurations*](https://github.com/open-telemetry/opentelemetry-specification/blob/main/specification/configuration/file-configuration.md#environment-variable-substitution).
+This accepts only non empty alphanumeric + underscore identifiers
+starting with alphabetic or underscore. If the Configuration WG were to
+expand this in the future (e.g. to include other features present in
+Bash-like syntax), we would not be able to expand our braces syntax to
+support new features without breaking users.
+
+## Desired behavior
+
+*This section is written as if the changes were already implemented.*
+
+The Collector supports **two** different syntaxes for environment
+variable resolution:
+
+1.  The *braces syntax*, `${ENV}`.
+2.  The *env provider syntax*, `${env:ENV}`.
+
+These both have** the same character set and behavior**. They both use
+the env provider under the hood.
+
+The naked syntax supported in BASH is not supported in the Collector.
+Escaping is supported by using two dollar signs. Escaping is also
+honored for unsupported identifiers like `${1}`.
+
+### Type casting rules
+
+The environment variable value is parsed by the yaml.v3 parser to an
+any-typed variable and the original representation as a string is stored
+for numeric types. The `yaml.v3` parser mostly follows the YAML v1.2
+specification with [*some
+exceptions*](https://github.com/go-yaml/yaml#compatibility). You can see
+how it works for some edge cases in this example:
+[*https://go.dev/play/p/RtPmH8aZA1X*](https://go.dev/play/p/RtPmH8aZA1X).
+
+When unmarshalling, we use mapstructure with WeaklyTypedInput
+**disabled**. We check via a hook an AsString method from confmap.Conf
+and use its return value when it is valid and we are mapping to a string
+field. This method has default casting rules for unambiguous scalar
+types but may return the original representation depending on the
+construction of confmap.Conf
+
+For using this notation in inline mode (e.g.`http://endpoint/${env:PATH}`), we
+use the AsString method from confmap.Conf.
+
+### Character set
+
+An environment variable identifier must be a nonempty ASCII alphanumeric
+or underscore starting with an alphabetic or underscore character. Its
+maximum length is 200 characters. Both syntaxes support recursive
+resolution.
+
+When an invalid identifier is found, a warning log is emitted, and the
+string is kept as-is.
+
+### Comparison table with current behavior
+
+This is a comparison between the current and desired behavior for
+loading a field with the braces syntax, `env` syntax.
+
+| Raw value    	| Field type 	| Current behavior, `${ENV}`, single field 	| Current behavior,  `${env:ENV}` , single field 	| Desired behavior, entire field 	| Desired behavior, inline string field 	|
+|--------------	|------------	|------------------------------------------	|------------------------------------------------	|--------------------------------	|---------------------------------------	|
+| `123`        	| integer    	| 123                                      	| 123                                            	| 123                            	| n/a                                   	|
+| `0123`       	| integer    	| 83                                       	| 83                                             	| 83                             	| n/a                                   	|
+| `0123`       	| string     	| 0123                                     	| 83                                             	| 0123 (83?)                     	| 0123                                  	|
+| `0xdeadbeef` 	| string     	| 0xdeadbeef                               	| 3735928559                                     	| 0xdeadbeef (3735928559?)       	| 0xdeadbeef                            	|
+| `"0123"`     	| string     	| "0123"                                   	| 0123                                           	| 0123                           	| 0123                                  	|
+| `!!str 0123` 	| string     	| !!str 0123                               	| 0123                                           	| 0123                           	| 0123 (!!str 0123)                     	|
+| `t`          	| boolean    	| true                                     	| true                                           	| Error: mapping string to bool  	| n/a                                   	|
+| `23`         	| boolean    	| true                                     	| true                                           	| Error: mapping integer to bool 	| n/a                                   	|