diff --git a/.gitignore b/.gitignore
index a0a03556..ab43e056 100644
--- a/.gitignore
+++ b/.gitignore
@@ -1,4 +1,5 @@
 .DS_Store
+.env
 .cache/
 # Claude Code runtime state (ignored by default)
 .claude/*
diff --git a/plugins/docs-tools/.claude-plugin/plugin.json b/plugins/docs-tools/.claude-plugin/plugin.json
index 5464925c..3ca2c03e 100644
--- a/plugins/docs-tools/.claude-plugin/plugin.json
+++ b/plugins/docs-tools/.claude-plugin/plugin.json
@@ -1,6 +1,6 @@
 {
   "name": "docs-tools",
-  "version": "0.0.63",
+  "version": "0.0.64",
   "description": "Documentation review, writing, and workflow tools for Red Hat AsciiDoc and Markdown documentation.",
   "author": {
     "name": "Red Hat Documentation Team",
diff --git a/plugins/docs-tools/README.md b/plugins/docs-tools/README.md
index f85635be..5424e599 100644
--- a/plugins/docs-tools/README.md
+++ b/plugins/docs-tools/README.md
@@ -10,10 +10,14 @@
 
 - Install [software dependencies](https://redhat-documentation.github.io/redhat-docs-agent-tools/install/#software-dependencies)
 
-- Create an `~/.env` file with your tokens:
+- Create an `.env` file with your tokens. You can use either location:
+
+    - **`~/.env`** — global defaults, shared across all projects
+    - **`.env`** in the project root — project-specific overrides (takes precedence over `~/.env`)
 
     ```bash
     JIRA_API_TOKEN=your_jira_api_token
+    # JIRA_AUTH_TOKEN is also accepted as a backward-compatible alias
     # Required for Atlassian Cloud authentication
     JIRA_EMAIL=you@redhat.com
     # Optional: defaults to https://redhat.atlassian.net if not set
@@ -23,8 +27,8 @@
     # Required scope: "api"
     GITLAB_TOKEN=your_gitlab_pat
     ```
-    
-- Add the following to the end of your `~/.bashrc` (Linux) or `~/.zshrc` (macOS):
+
+    All scripts load both files automatically (global first, then local overrides). You can also add the following to `~/.bashrc` (Linux) or `~/.zshrc` (macOS) to export them into your shell:
     
     ```bash
     if [ -f ~/.env ]; then
diff --git a/plugins/docs-tools/agents/docs-planner.md b/plugins/docs-tools/agents/docs-planner.md
index 6c8b67e6..a232ba89 100644
--- a/plugins/docs-tools/agents/docs-planner.md
+++ b/plugins/docs-tools/agents/docs-planner.md
@@ -35,9 +35,9 @@ If either file cannot be read, **STOP** and report the error. Do not proceed fro
 
 **You MUST successfully read the requirements input file before proceeding.** If the input file is missing or empty, STOP and report the error.
 
-If access to JIRA or Git is needed for supplemental research and fails, **STOP IMMEDIATELY**, report the exact error, and instruct the user to check their credentials in `~/.env`. Never guess or infer content.
+If access to JIRA or Git is needed for supplemental research and fails, **STOP IMMEDIATELY**, report the exact error, and instruct the user to check their credentials in `.env` or `~/.env`. Never guess or infer content.
 
-**Do not** prepend `source ~/.env` to bash commands — all Python scripts load `~/.env` automatically.
+**Do not** prepend `source ~/.env` to bash commands — all Python scripts load `.env` files automatically.
 
 ## When invoked
 
diff --git a/plugins/docs-tools/agents/docs-writer.md b/plugins/docs-tools/agents/docs-writer.md
index c41f48f1..564d04cb 100644
--- a/plugins/docs-tools/agents/docs-writer.md
+++ b/plugins/docs-tools/agents/docs-writer.md
@@ -30,9 +30,9 @@ Before writing any documentation:
 
 ### JIRA/Git access failures during writing
 
-If access to JIRA or Git fails during writing, **STOP IMMEDIATELY**, report the exact error, and instruct the user to check their credentials in `~/.env`. Never guess or infer content.
+If access to JIRA or Git fails during writing, **STOP IMMEDIATELY**, report the exact error, and instruct the user to check their credentials in `.env` or `~/.env`. Never guess or infer content.
 
-**Do not** prepend `source ~/.env` to bash commands — all Python scripts load `~/.env` automatically.
+**Do not** prepend `source ~/.env` to bash commands — all Python scripts load `.env` files automatically.
 
 ## CRITICAL: Mandatory reference loading
 
diff --git a/plugins/docs-tools/agents/requirements-analyst.md b/plugins/docs-tools/agents/requirements-analyst.md
index 7103e4d4..8e987a64 100644
--- a/plugins/docs-tools/agents/requirements-analyst.md
+++ b/plugins/docs-tools/agents/requirements-analyst.md
@@ -23,7 +23,7 @@ export CLAUDE_PLUGIN_ROOT="${CLAUDE_PLUGIN_ROOT:-$(git rev-parse --show-toplevel
 
 Before fetching, inspect the requirement's `sources` list. Only attempt access to systems that are actually listed (JIRA for `type: "jira"`, Git for `type: "pr"`, etc.). If a listed source fails access, **STOP IMMEDIATELY** and return an error result (see output format). Do not hard-fail for systems that are not in the sources list.
 
-**Do not** prepend `source ~/.env` to bash commands — all Python scripts load `~/.env` automatically.
+**Do not** prepend `source ~/.env` to bash commands — all Python scripts load `.env` files automatically.
 
 **Note:** The jira-reader script requires `jira` and `ratelimit` Python packages. If not installed: `python3 -m pip install jira ratelimit`
 
@@ -196,7 +196,7 @@ python3 ${CLAUDE_PLUGIN_ROOT}/skills/git-pr-reader/scripts/git_pr_reader.py file
 python3 ${CLAUDE_PLUGIN_ROOT}/skills/git-pr-reader/scripts/git_pr_reader.py diff <pr-url>
 ```
 
-Requires `GITHUB_TOKEN` (GitHub) or `GITLAB_TOKEN` (GitLab) in `~/.env`.
+Requires `GITHUB_TOKEN` (GitHub) or `GITLAB_TOKEN` (GitLab) in `.env` or `~/.env`.
 
 ### Reading Red Hat documentation
 
diff --git a/plugins/docs-tools/agents/requirements-discoverer.md b/plugins/docs-tools/agents/requirements-discoverer.md
index 7eced1e0..ecaa84c3 100644
--- a/plugins/docs-tools/agents/requirements-discoverer.md
+++ b/plugins/docs-tools/agents/requirements-discoverer.md
@@ -25,7 +25,7 @@ If JIRA access fails, **STOP IMMEDIATELY**, report the exact error in your JSON
 
 Git access (for PR/MR details) is only required when PR/MR URLs are present — either provided manually or auto-discovered from the JIRA graph. If no PR/MR URLs exist, skip PR listing entirely. If a specific PR/MR URL fails to fetch, log it in the `errors` array but continue discovery from other sources.
 
-**Do not** prepend `source ~/.env` to bash commands — all Python scripts load `~/.env` automatically.
+**Do not** prepend `source ~/.env` to bash commands — all Python scripts load `.env` files automatically.
 
 **Note:** The jira-reader script requires `jira` and `ratelimit` Python packages. If these are not installed, you will see `ModuleNotFoundError`. Run: `python3 -m pip install jira ratelimit`
 
diff --git a/plugins/docs-tools/agents/technical-reviewer.md b/plugins/docs-tools/agents/technical-reviewer.md
index ab83820d..380f0b71 100644
--- a/plugins/docs-tools/agents/technical-reviewer.md
+++ b/plugins/docs-tools/agents/technical-reviewer.md
@@ -11,9 +11,9 @@ You are not a style reviewer. You do not flag grammar, formatting, or style guid
 
 ## CRITICAL: Access failure procedure
 
-If access to JIRA or Git fails during technical review, **STOP IMMEDIATELY**, report the exact error, and instruct the user to check their credentials in `~/.env`. Do not guess or infer technical details.
+If access to JIRA or Git fails during technical review, **STOP IMMEDIATELY**, report the exact error, and instruct the user to check their credentials in `.env` or `~/.env`. Do not guess or infer technical details.
 
-**Do not** prepend `source ~/.env` to bash commands — all Python scripts load `~/.env` automatically.
+**Do not** prepend `source ~/.env` to bash commands — all Python scripts load `.env` files automatically.
 
 ## Your reviewer persona
 
diff --git a/plugins/docs-tools/skills/docs-orchestrator/SKILL.md b/plugins/docs-tools/skills/docs-orchestrator/SKILL.md
index 887ca9d1..610e62f9 100644
--- a/plugins/docs-tools/skills/docs-orchestrator/SKILL.md
+++ b/plugins/docs-tools/skills/docs-orchestrator/SKILL.md
@@ -23,7 +23,7 @@ Install the workflow completion Stop hook (safe to re-run, skips if already inst
 bash ${CLAUDE_SKILL_DIR}/scripts/setup-hooks.sh
 ```
 
-**Do not** source `~/.env` or check for tokens/CLIs here — Python scripts (`jira_reader.py`, `resolve_source.py`, etc.) load `~/.env` and validate prerequisites themselves, producing clear errors on failure.
+**Do not** source `.env` files or check for tokens/CLIs here — Python scripts (`jira_reader.py`, `resolve_source.py`, etc.) load `.env` files and validate prerequisites themselves, producing clear errors on failure.
 
 ## Parse arguments
 
diff --git a/plugins/docs-tools/skills/docs-review-style/SKILL.md b/plugins/docs-tools/skills/docs-review-style/SKILL.md
index dbbec7f9..c2884daf 100644
--- a/plugins/docs-tools/skills/docs-review-style/SKILL.md
+++ b/plugins/docs-tools/skills/docs-review-style/SKILL.md
@@ -590,7 +590,7 @@ If any changes were applied, remind the user:
 - Always use `git_pr_reader.py extract` for deterministic line numbers — never estimate or guess
 - Use Bash with heredoc/cat for writing /tmp files (not the Write tool)
 - Cite the specific style guide rule or review skill for each issue
-- Comments are posted under YOUR username using tokens from `~/.env`
+- Comments are posted under YOUR username using tokens from `.env` files
 - For .adoc files, modular docs compliance uses `docs-review-modular-docs`
 - Release notes skills only apply to .adoc files that appear to be release notes
 - Vale linting requires Vale to be installed and configured
diff --git a/plugins/docs-tools/skills/docs-review-technical/SKILL.md b/plugins/docs-tools/skills/docs-review-technical/SKILL.md
index 9ca3518c..90b7ba3d 100644
--- a/plugins/docs-tools/skills/docs-review-technical/SKILL.md
+++ b/plugins/docs-tools/skills/docs-review-technical/SKILL.md
@@ -774,7 +774,7 @@ Entities found in API surface but not referenced in reviewed documentation:
 - Always use `git_pr_reader.py extract` for deterministic line numbers — never estimate or guess
 - Use Bash with heredoc/cat for writing /tmp files (not the Write tool)
 - Include source code evidence in each issue's `reason` field
-- Comments are posted under YOUR username using tokens from `~/.env`
+- Comments are posted under YOUR username using tokens from `.env` files
 - `scripts/extract_refs.py` extracts technical references from doc files (commands, APIs, configs, file paths)
 - Code-finder wrappers live in `${CLAUDE_PLUGIN_ROOT}/skills/code-evidence/scripts/`:
   - `grounded_review.py` — validates doc claims against code (verdicts: supported/unsupported/partially_supported/no_evidence_found)
diff --git a/plugins/docs-tools/skills/docs-workflow-create-jira/SKILL.md b/plugins/docs-tools/skills/docs-workflow-create-jira/SKILL.md
index a97bb2bb..f9bc7522 100644
--- a/plugins/docs-tools/skills/docs-workflow-create-jira/SKILL.md
+++ b/plugins/docs-tools/skills/docs-workflow-create-jira/SKILL.md
@@ -28,7 +28,7 @@ Unlike other step skills, this skill does **not** dispatch an agent. It runs `sc
 
 ## Environment
 
-Requires `JIRA_API_TOKEN` and `JIRA_EMAIL` in the environment (typically sourced from `~/.env`).
+Requires `JIRA_API_TOKEN` (or the backward-compatible alias `JIRA_AUTH_TOKEN`) and `JIRA_EMAIL` in the environment. `create-jira-ticket.sh` sources `~/.env` then `<project-root>/.env`, where the project root is resolved from the `PLAN_FILE` location.
 
 ## Execution
 
diff --git a/plugins/docs-tools/skills/docs-workflow-create-jira/scripts/create-jira-ticket.sh b/plugins/docs-tools/skills/docs-workflow-create-jira/scripts/create-jira-ticket.sh
index f77772d6..38c0a74f 100755
--- a/plugins/docs-tools/skills/docs-workflow-create-jira/scripts/create-jira-ticket.sh
+++ b/plugins/docs-tools/skills/docs-workflow-create-jira/scripts/create-jira-ticket.sh
@@ -15,8 +15,32 @@ PLAN_FILE="${3:?Missing PLAN_FILE argument}"
 
 SCRIPT_DIR="$(cd "$(dirname "$0")" && pwd)"
 
-# Source ~/.env for credential mapping
-source ~/.env 2>/dev/null || true
+# Load local overrides first, then global defaults (resolve .env from project root)
+# Safe key/value parser: only reads KEY=VALUE lines, skips shell commands
+_safe_load_env() {
+    local file="$1"
+    [[ -f "$file" ]] || return 0
+    while IFS= read -r line || [[ -n "$line" ]]; do
+        [[ "$line" =~ ^[[:space:]]*# ]] && continue
+        [[ "$line" =~ ^[[:space:]]*$ ]] && continue
+        [[ "$line" =~ ^[[:space:]]*([a-zA-Z_][a-zA-Z0-9_]*)[[:space:]]*=(.*) ]] || continue
+        local key="${BASH_REMATCH[1]}"
+        local value="${BASH_REMATCH[2]}"
+        value="${value#"${value%%[![:space:]]*}"}"
+        value="${value%"${value##*[![:space:]]}"}"
+        if [[ "$value" =~ ^\"(.*)\"$ ]] || [[ "$value" =~ ^\'(.*)\'$ ]]; then
+            value="${BASH_REMATCH[1]}"
+        fi
+        if [[ -z "${!key+x}" ]]; then
+            export "$key=$value"
+        fi
+    done < "$file"
+}
+_project_root="$(cd "$(dirname "$PLAN_FILE")" 2>/dev/null && git rev-parse --show-toplevel 2>/dev/null || true)"
+if [[ -n "$_project_root" ]]; then
+    _safe_load_env "$_project_root/.env"
+fi
+_safe_load_env ~/.env
 # Fallback: accept JIRA_AUTH_TOKEN for backward compatibility
 : "${JIRA_API_TOKEN:=${JIRA_AUTH_TOKEN:-}}"
 JIRA_URL="${JIRA_URL:-https://redhat.atlassian.net}"
diff --git a/plugins/docs-tools/skills/docs-workflow-jira-ready/SKILL.md b/plugins/docs-tools/skills/docs-workflow-jira-ready/SKILL.md
index 87fe6300..ad11fa92 100644
--- a/plugins/docs-tools/skills/docs-workflow-jira-ready/SKILL.md
+++ b/plugins/docs-tools/skills/docs-workflow-jira-ready/SKILL.md
@@ -24,7 +24,7 @@ Gate skill for automated docs-orchestrator runs. Checks JIRA for new tickets mat
 
 ## Environment
 
-Requires `JIRA_API_TOKEN` and `JIRA_EMAIL` in the environment (typically sourced from `~/.env`). Both are validated before any API calls.
+Requires `JIRA_API_TOKEN` (or the backward-compatible alias `JIRA_AUTH_TOKEN`) and `JIRA_EMAIL` in the environment. `jira-ready-check.sh` loads `~/.env` then `<project-root>/.env` using a safe key/value parser (no shell execution). Both variables are validated before any API calls.
 
 ## Execution
 
diff --git a/plugins/docs-tools/skills/docs-workflow-jira-ready/scripts/jira-ready-check.sh b/plugins/docs-tools/skills/docs-workflow-jira-ready/scripts/jira-ready-check.sh
index ec0a5894..10e42956 100755
--- a/plugins/docs-tools/skills/docs-workflow-jira-ready/scripts/jira-ready-check.sh
+++ b/plugins/docs-tools/skills/docs-workflow-jira-ready/scripts/jira-ready-check.sh
@@ -58,19 +58,45 @@ if [[ -z "$JQL" ]]; then
   exit 1
 fi
 
-# --- Validate environment ---
-if [[ -z "${JIRA_API_TOKEN:-}" ]]; then
-  # Try sourcing ~/.env
-  set -a; source ~/.env 2>/dev/null || true; set +a
+# --- Load environment ---
+# Safe key/value parser: only reads KEY=VALUE lines, skips shell commands
+_safe_load_env() {
+  local file="$1"
+  [[ -f "$file" ]] || return 0
+  while IFS= read -r line || [[ -n "$line" ]]; do
+    [[ "$line" =~ ^[[:space:]]*# ]] && continue
+    [[ "$line" =~ ^[[:space:]]*$ ]] && continue
+    [[ "$line" =~ ^[[:space:]]*([a-zA-Z_][a-zA-Z0-9_]*)[[:space:]]*=(.*) ]] || continue
+    local key="${BASH_REMATCH[1]}"
+    local value="${BASH_REMATCH[2]}"
+    value="${value#"${value%%[![:space:]]*}"}"
+    value="${value%"${value##*[![:space:]]}"}"
+    if [[ "$value" =~ ^\"(.*)\"$ ]] || [[ "$value" =~ ^\'(.*)\'$ ]]; then
+      value="${BASH_REMATCH[1]}"
+    fi
+    if [[ -z "${!key+x}" ]]; then
+      export "$key=$value"
+    fi
+  done < "$file"
+}
+_project_root="$(git rev-parse --show-toplevel 2>/dev/null || true)"
+if [[ -z "$_project_root" ]]; then
+  _project_root="$(cd "$SCRIPT_DIR" 2>/dev/null && git rev-parse --show-toplevel 2>/dev/null || true)"
+fi
+if [[ -n "$_project_root" ]]; then
+  _safe_load_env "$_project_root/.env"
 fi
+_safe_load_env ~/.env
+# Fallback: accept JIRA_AUTH_TOKEN for backward compatibility
+: "${JIRA_API_TOKEN:=${JIRA_AUTH_TOKEN:-}}"
 
 if [[ -z "${JIRA_API_TOKEN:-}" ]]; then
-  echo '{"error": "JIRA_API_TOKEN is not set. Add it to ~/.env."}'
+  echo '{"error": "JIRA_API_TOKEN is not set. Add it to .env or ~/.env."}'
   exit 1
 fi
 
 if [[ -z "${JIRA_EMAIL:-}" ]]; then
-  echo '{"error": "JIRA_EMAIL is not set. Add it to ~/.env."}'
+  echo '{"error": "JIRA_EMAIL is not set. Add it to .env or ~/.env."}'
   exit 1
 fi
 
diff --git a/plugins/docs-tools/skills/git-pr-reader/SKILL.md b/plugins/docs-tools/skills/git-pr-reader/SKILL.md
index 933e332c..1ca5dacf 100644
--- a/plugins/docs-tools/skills/git-pr-reader/SKILL.md
+++ b/plugins/docs-tools/skills/git-pr-reader/SKILL.md
@@ -96,14 +96,14 @@ python3 ${CLAUDE_SKILL_DIR}/scripts/git_pr_reader.py detect --json
 
 ### Authentication
 
-Set in `~/.env` (see docs-tools README for setup):
+Set in `~/.env` (global) or `.env` in the project root (local override). See docs-tools README for setup:
 
 ```bash
 GITHUB_TOKEN=your-github-pat    # required scope: "repo" for private, "public_repo" for public
 GITLAB_TOKEN=your-gitlab-pat    # required scope: "api"
 ```
 
-The script loads `~/.env` automatically — do **not** prepend `source ~/.env` to bash commands.
+The script loads `.env` files automatically — do **not** prepend `source ~/.env` to bash commands.
 
 ### Python Library Usage
 
diff --git a/plugins/docs-tools/skills/git-pr-reader/scripts/git_pr_reader.py b/plugins/docs-tools/skills/git-pr-reader/scripts/git_pr_reader.py
index 9d43a100..77136aaf 100755
--- a/plugins/docs-tools/skills/git-pr-reader/scripts/git_pr_reader.py
+++ b/plugins/docs-tools/skills/git-pr-reader/scripts/git_pr_reader.py
@@ -40,7 +40,7 @@
     python git_pr_reader.py detect
 
 Authentication:
-    Requires tokens in ~/.env:
+    Requires tokens in .env or ~/.env:
     - GitHub: GITHUB_TOKEN environment variable
     - GitLab: GITLAB_TOKEN environment variable
 """
@@ -83,15 +83,25 @@
 
 
 def load_env_file() -> None:
-    """Load environment variables from ~/.env file."""
-    env_file = os.path.expanduser("~/.env")
-    if os.path.exists(env_file):
-        with open(env_file) as f:
-            for line in f:
-                line = line.strip()
-                if line and not line.startswith("#") and "=" in line:
-                    key, value = line.split("=", 1)
-                    os.environ.setdefault(key.strip(), value.strip())
+    """Load environment variables from .env files.
+
+    Loads ./.env first (local settings), then ~/.env (global defaults).
+    Pre-existing environment variables are never overwritten.
+    Surrounding quotes on values are stripped.
+    """
+    for env_path in [".env", os.path.expanduser("~/.env")]:
+        if os.path.exists(env_path):
+            with open(env_path) as f:
+                for line in f:
+                    line = line.strip()
+                    if line and not line.startswith("#") and "=" in line:
+                        key, value = line.split("=", 1)
+                        value = value.strip()
+                        if (value.startswith('"') and value.endswith('"')) or (
+                            value.startswith("'") and value.endswith("'")
+                        ):
+                            value = value[1:-1]
+                        os.environ.setdefault(key.strip(), value)
 
 
 def color_print(prefix: str, message: str) -> None:
@@ -1612,7 +1622,7 @@ def cmd_detect(args) -> int:
         # Try GitLab via urllib.request
         gitlab_token = os.environ.get("GITLAB_TOKEN")
         if not gitlab_token:
-            print("Error: GITLAB_TOKEN not set in ~/.env")
+            print("Error: GITLAB_TOKEN not set in .env or ~/.env")
             return 1
 
         for remote_name, remote_url in remotes.items():
diff --git a/plugins/docs-tools/skills/jira-reader/SKILL.md b/plugins/docs-tools/skills/jira-reader/SKILL.md
index b479d007..bc1b3a17 100644
--- a/plugins/docs-tools/skills/jira-reader/SKILL.md
+++ b/plugins/docs-tools/skills/jira-reader/SKILL.md
@@ -33,7 +33,7 @@ The skill uses a Python script that connects to JIRA using an authentication tok
 
 ### Environment Variables Required
 
-Set in `~/.env` (see docs-tools README for setup):
+Set in `~/.env` (global) or `.env` in the project root (local override). See docs-tools README for setup:
 
 ```bash
 JIRA_API_TOKEN=your-jira-api-token
@@ -41,7 +41,7 @@ JIRA_EMAIL=you@redhat.com           # required for Atlassian Cloud
 JIRA_URL=https://redhat.atlassian.net  # optional, defaults to redhat.atlassian.net
 ```
 
-The script loads `~/.env` automatically — do **not** prepend `source ~/.env` to bash commands.
+The script loads `.env` files automatically — do **not** prepend `source ~/.env` to bash commands.
 
 ### Examples
 
diff --git a/plugins/docs-tools/skills/jira-reader/scripts/jira_reader.py b/plugins/docs-tools/skills/jira-reader/scripts/jira_reader.py
index 53b66825..b24260c7 100755
--- a/plugins/docs-tools/skills/jira-reader/scripts/jira_reader.py
+++ b/plugins/docs-tools/skills/jira-reader/scripts/jira_reader.py
@@ -125,15 +125,25 @@ def adf_to_text(node):
 
 
 def load_env_file():
-    """Load environment variables from ~/.env file."""
-    env_file = os.path.expanduser("~/.env")
-    if os.path.exists(env_file):
-        with open(env_file) as f:
-            for line in f:
-                line = line.strip()
-                if line and not line.startswith("#") and "=" in line:
-                    key, value = line.split("=", 1)
-                    os.environ.setdefault(key.strip(), value.strip())
+    """Load environment variables from .env files.
+
+    Loads ./.env first (local settings), then ~/.env (global defaults).
+    Pre-existing environment variables are never overwritten.
+    Surrounding quotes on values are stripped.
+    """
+    for env_path in [".env", os.path.expanduser("~/.env")]:
+        if os.path.exists(env_path):
+            with open(env_path) as f:
+                for line in f:
+                    line = line.strip()
+                    if line and not line.startswith("#") and "=" in line:
+                        key, value = line.split("=", 1)
+                        value = value.strip()
+                        if (value.startswith('"') and value.endswith('"')) or (
+                            value.startswith("'") and value.endswith("'")
+                        ):
+                            value = value[1:-1]
+                        os.environ.setdefault(key.strip(), value)
 
 
 class JiraReader:
@@ -145,7 +155,9 @@ def __init__(self, server=None):
 
         token = os.environ.get("JIRA_API_TOKEN") or os.environ.get("JIRA_AUTH_TOKEN")
         if not token:
-            raise ValueError("JIRA_API_TOKEN environment variable not set. Add it to ~/.env")
+            raise ValueError(
+                "JIRA_API_TOKEN (or JIRA_AUTH_TOKEN) not set. Add it to .env or ~/.env"
+            )
 
         server = server or os.environ.get("JIRA_URL", "https://redhat.atlassian.net")
 
@@ -155,7 +167,7 @@ def __init__(self, server=None):
             if not email:
                 raise ValueError(
                     "JIRA_EMAIL environment variable not set. "
-                    "Required for Atlassian Cloud. Add it to ~/.env"
+                    "Required for Atlassian Cloud. Add it to .env or ~/.env"
                 )
             self.jira = JIRA(server=server, basic_auth=(email, token), options=options)
         else:
diff --git a/plugins/docs-tools/skills/jira-writer/SKILL.md b/plugins/docs-tools/skills/jira-writer/SKILL.md
index ef570dbb..d8043253 100644
--- a/plugins/docs-tools/skills/jira-writer/SKILL.md
+++ b/plugins/docs-tools/skills/jira-writer/SKILL.md
@@ -24,7 +24,7 @@ The skill uses a Python script that connects to JIRA using an authentication tok
 
 ### Environment Variables Required
 
-Set in `~/.env` (see docs-tools README for setup):
+Set in `~/.env` (global) or `.env` in the project root (local override). See docs-tools README for setup:
 
 ```bash
 JIRA_API_TOKEN=your-jira-api-token
@@ -32,7 +32,7 @@ JIRA_EMAIL=you@redhat.com           # required for Atlassian Cloud
 JIRA_URL=https://redhat.atlassian.net  # optional, defaults to redhat.atlassian.net
 ```
 
-The script loads `~/.env` automatically — do **not** prepend `source ~/.env` to bash commands.
+The script loads `.env` files automatically — do **not** prepend `source ~/.env` to bash commands.
 
 ### Examples
 
diff --git a/plugins/docs-tools/skills/jira-writer/scripts/jira_writer.py b/plugins/docs-tools/skills/jira-writer/scripts/jira_writer.py
index ae2dddef..32417f19 100755
--- a/plugins/docs-tools/skills/jira-writer/scripts/jira_writer.py
+++ b/plugins/docs-tools/skills/jira-writer/scripts/jira_writer.py
@@ -27,15 +27,25 @@
 
 
 def load_env_file():
-    """Load environment variables from ~/.env file."""
-    env_file = os.path.expanduser("~/.env")
-    if os.path.exists(env_file):
-        with open(env_file) as f:
-            for line in f:
-                line = line.strip()
-                if line and not line.startswith("#") and "=" in line:
-                    key, value = line.split("=", 1)
-                    os.environ.setdefault(key.strip(), value.strip())
+    """Load environment variables from .env files.
+
+    Loads ./.env first (local settings), then ~/.env (global defaults).
+    Pre-existing environment variables are never overwritten.
+    Surrounding quotes on values are stripped.
+    """
+    for env_path in [".env", os.path.expanduser("~/.env")]:
+        if os.path.exists(env_path):
+            with open(env_path) as f:
+                for line in f:
+                    line = line.strip()
+                    if line and not line.startswith("#") and "=" in line:
+                        key, value = line.split("=", 1)
+                        value = value.strip()
+                        if (value.startswith('"') and value.endswith('"')) or (
+                            value.startswith("'") and value.endswith("'")
+                        ):
+                            value = value[1:-1]
+                        os.environ.setdefault(key.strip(), value)
 
 
 # Custom field IDs used in Red Hat JIRA
@@ -52,7 +62,9 @@ def __init__(self, server=None):
 
         token = os.environ.get("JIRA_API_TOKEN") or os.environ.get("JIRA_AUTH_TOKEN")
         if not token:
-            raise ValueError("JIRA_API_TOKEN environment variable not set. Add it to ~/.env")
+            raise ValueError(
+                "JIRA_API_TOKEN (or JIRA_AUTH_TOKEN) not set. Add it to .env or ~/.env"
+            )
 
         server = server or os.environ.get("JIRA_URL", "https://redhat.atlassian.net")
 
@@ -61,7 +73,7 @@ def __init__(self, server=None):
             if not email:
                 raise ValueError(
                     "JIRA_EMAIL environment variable not set. "
-                    "Required for Atlassian Cloud. Add it to ~/.env"
+                    "Required for Atlassian Cloud. Add it to .env or ~/.env"
                 )
             self.jira = JIRA(server=server, basic_auth=(email, token))
         else: