diff --git a/internal/testutil/env.go b/internal/testutil/env.go
index 598229655..1ecbe6485 100644
--- a/internal/testutil/env.go
+++ b/internal/testutil/env.go
@@ -13,19 +13,11 @@ import (
 // The original environment is restored upon test completion.
 // Note: use of this function is incompatible with parallel execution.
 func CleanupEnvironment(t TestingT) {
-	// Restore environment when test finishes.
-	environ := os.Environ()
-	t.Cleanup(func() {
-		// Restore original environment.
-		for _, kv := range environ {
-			kvs := strings.SplitN(kv, "=", 2)
-			os.Setenv(kvs[0], kvs[1])
-		}
-	})
-
 	path := os.Getenv("PATH")
 	pwd := os.Getenv("PWD")
-	os.Clearenv()
+
+	// Clear all environment variables.
+	NullEnvironment(t)
 
 	// We use t.Setenv instead of os.Setenv because the former actively
 	// prevents a test being run with t.Parallel. Modifying the environment
@@ -38,6 +30,23 @@ func CleanupEnvironment(t TestingT) {
 	}
 }
 
+// NullEnvironment sets up an empty environment with absolutely no environment variables set.
+// The original environment is restored upon test completion.
+// Note: use of this function is incompatible with parallel execution
+func NullEnvironment(t TestingT) {
+	// Restore environment when test finishes.
+	environ := os.Environ()
+	t.Cleanup(func() {
+		// Restore original environment.
+		for _, kv := range environ {
+			kvs := strings.SplitN(kv, "=", 2)
+			os.Setenv(kvs[0], kvs[1])
+		}
+	})
+
+	os.Clearenv()
+}
+
 // Changes into specified directory for the duration of the test.
 // Returns the current working directory.
 func Chdir(t TestingT, dir string) string {
diff --git a/libs/auth/env.go b/libs/auth/env.go
index 7413662b9..08282e463 100644
--- a/libs/auth/env.go
+++ b/libs/auth/env.go
@@ -1,6 +1,13 @@
 package auth
 
-import "github.com/databricks/databricks-sdk-go/config"
+import (
+	"fmt"
+	"os"
+	"slices"
+	"strings"
+
+	"github.com/databricks/databricks-sdk-go/config"
+)
 
 // Env generates the authentication environment variables we need to set for
 // downstream applications from the CLI to work correctly.
@@ -44,7 +51,7 @@ func GetEnvFor(name string) (string, bool) {
 // This is useful for spawning subprocesses since you can unset all auth environment
 // variables to clean up the environment before configuring authentication for the
 // child process.
-func EnvVars() []string {
+func envVars() []string {
 	out := []string{}
 
 	for _, attr := range config.ConfigAttributes {
@@ -57,3 +64,52 @@ func EnvVars() []string {
 
 	return out
 }
+
+// ProcessEnv generates the environment variables that should be set to authenticate
+// downstream processes to use the same auth credentials as in cfg.
+func ProcessEnv(cfg *config.Config) []string {
+	// We want child processes to inherit environment variables like $HOME or $HTTPS_PROXY
+	// because they influence auth resolution.
+	base := os.Environ()
+
+	out := []string{}
+	authEnvVars := envVars()
+
+	// Remove any existing auth environment variables. This is done because
+	// the CLI offers multiple modalities of configuring authentication like
+	// `--profile` or `DATABRICKS_CONFIG_PROFILE` or `profile: <profile>` in the
+	// bundle config file.
+	//
+	// Each of these modalities have different priorities and thus we don't want
+	// any auth configuration to piggyback into the child process environment.
+	//
+	// This is a precaution to avoid conflicting auth configurations being passed
+	// to the child telemetry process.
+	//
+	// Normally this should be unnecessary because the SDK should error if multiple
+	// authentication methods have been configured. But there is no harm in doing this
+	// as a precaution.
+	for _, v := range base {
+		k, _, found := strings.Cut(v, "=")
+		if !found {
+			continue
+		}
+		if slices.Contains(authEnvVars, k) {
+			continue
+		}
+		out = append(out, v)
+	}
+
+	// Now add the necessary authentication environment variables.
+	newEnv := Env(cfg)
+	for k, v := range newEnv {
+		out = append(out, fmt.Sprintf("%s=%s", k, v))
+	}
+
+	// Sort the environment variables so that the output is deterministic.
+	// Keeping the output deterministic helps with reproducibility and keeping the
+	// behavior consistent incase there are any issues.
+	slices.Sort(out)
+
+	return out
+}
diff --git a/libs/auth/env_test.go b/libs/auth/env_test.go
index 38dc1c6b7..5aa893e11 100644
--- a/libs/auth/env_test.go
+++ b/libs/auth/env_test.go
@@ -122,7 +122,7 @@ func TestAuthEnvVars(t *testing.T) {
 		"ACTIONS_ID_TOKEN_REQUEST_TOKEN",
 	}
 
-	out := EnvVars()
+	out := envVars()
 	for _, v := range contains {
 		assert.Contains(t, out, v)
 	}