diff --git a/src/gitlab-tofu.sh b/src/gitlab-tofu.sh
index 435b4bde8c139f8772c97232922c707dcb6528d3..075c6d212f2ead8230f186f05dde34e79b1f691e 100644
--- a/src/gitlab-tofu.sh
+++ b/src/gitlab-tofu.sh
@@ -11,9 +11,7 @@ fi
 # =============
 # Below are a bunch of variables that we use as "feature flags".
 
-if [ -z "$TF_FF_AUTO_URLENCODE_STATE_NAME" ]; then
-  TF_FF_AUTO_URLENCODE_STATE_NAME=true
-fi
+# There are no feature flags at the moment.
 
 # Helpers
 
@@ -78,11 +76,8 @@ fi
 
 # If TF_ADDRESS is unset but TF_STATE_NAME is provided, then default to GitLab backend in current project
 if [ -n "${TF_STATE_NAME}" ] && [ -z "${TF_ADDRESS}" ]; then
-  # auto url-encode TF_STATE_NAME when FF is enabled
-  if $TF_FF_AUTO_URLENCODE_STATE_NAME; then
-    TF_STATE_NAME="$(jq -rn --arg x "${TF_STATE_NAME}" '$x|@uri')"
-  fi
-
+  # auto url-encode TF_STATE_NAME
+  TF_STATE_NAME="$(jq -rn --arg x "${TF_STATE_NAME}" '$x|@uri')"
   TF_ADDRESS="${CI_API_V4_URL}/projects/${CI_PROJECT_ID}/terraform/state/${TF_STATE_NAME}"
 fi
 
diff --git a/tests/unit/gitlab-tofu.bats b/tests/unit/gitlab-tofu.bats
index 0770c928ff00acc5adfaafac7001006740063292..faf2d312ed717a377ccb243c4585886a5a9cb84f 100644
--- a/tests/unit/gitlab-tofu.bats
+++ b/tests/unit/gitlab-tofu.bats
@@ -84,13 +84,13 @@ EOF
 @test "gitlab-tofu plan" {
   export TF_PLAN_CACHE="test-plan.cache"
   gitlab-tofu plan
-  if [ ! -f "$TF_ROOT/$TF_PLAN_CACHE" ]; then 
+  if [ ! -f "$TF_ROOT/$TF_PLAN_CACHE" ]; then
     echo "expected to find a plan.cache file"
     exit 1
   fi
 
   gitlab-tofu plan-json
-  if [ ! -f "$TF_ROOT/plan.json" ]; then 
+  if [ ! -f "$TF_ROOT/plan.json" ]; then
     echo "expected to find a plan.json file"
     exit 1
   fi
@@ -111,28 +111,28 @@ EOF
 
 @test "gitlab-tofu validate without implicit init" {
   export TF_IMPLICIT_INIT=false
- 
+
   run ! gitlab-tofu validate -no-color
   assert_output --partial 'This module is not yet installed'
 }
 
 @test "gitlab-tofu plan without implicit init" {
   export TF_IMPLICIT_INIT=false
- 
+
   run ! gitlab-tofu plan -no-color
   assert_output --partial 'Error: Backend initialization required'
 }
 
 @test "gitlab-tofu apply without implicit init" {
   export TF_IMPLICIT_INIT=false
- 
+
   run ! gitlab-tofu apply -no-color
   assert_output --partial 'Error: Failed to load '
 }
 
 @test "gitlab-tofu destroy without implicit init" {
   export TF_IMPLICIT_INIT=false
- 
+
   run ! gitlab-tofu destroy -no-color
   assert_output --partial 'Error: Backend initialization required'
 }
@@ -195,21 +195,6 @@ EOF
   $SHELL test.sh
 }
 
-# bats test_tags=source
-@test "gitlab-tofu source state name auto urlencode FF disabled" {
-  test -n "$SHELL"
-
-  cat <<'EOF' > test.sh
-set -x
-export TF_FF_AUTO_URLENCODE_STATE_NAME=false
-export TF_STATE_NAME=production/europe
-. $(which gitlab-tofu)
-test "$TF_STATE_NAME" = "production/europe"
-EOF
-
-  $SHELL test.sh
-}
-
 # bats test_tags=source
 @test "gitlab-tofu source init with prepared registry token" {
   test -n "$SHELL"