Issue #16137 has been updated by Curtis Ruck.

This is the commit to blame: 
https://github.com/puppetlabs/puppet/commit/107715e8c90dcda0793b671c7fbc7ff3975991ac
  

I believe its standard practice, when using the `daemon` init.d functions to 
not include many environment variables.  On RHEL6, this is all the init scripts 
have (explictly set by /sbin/service):

TERM=xterm
PATH=/sbin:/usr/sbin:/bin:/usr/bin
PWD=/
LANG=en_US.UTF-8
SHLVL=2

----------------------------------------
Bug #16137: Cannot start Puppet service on Ubuntu
https://projects.puppetlabs.com/issues/16137#change-70071

Author: Justin Downing
Status: Accepted
Priority: Normal
Assignee: 
Category: 
Target version: 3.0.0
Affected Puppet version: 3.0.0-rc4
Keywords: 
Branch: 


I bootstrapped a new server on EC2 today with 3.0rc4 from Puppetlabs apt repo. 
However, the service will not start:

    root@tst01:~# service puppet start
    * Starting puppet agent       Error: Could not get application-specific 
default settings: couldn't find HOME environment -- expanding `~/.puppet'    
[fail]
     


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