diff --git a/apply/apply.go b/apply/apply.go
index 2adf2f42b..1fcb179db 100644
--- a/apply/apply.go
+++ b/apply/apply.go
@@ -219,16 +219,26 @@ func applyTFE(fs afero.Fs, plan *plan.Plan, tmpl *templates.T) error {
 	}
 
 	logrus.Debug("applying tfe")
-	path := fmt.Sprintf("%s/tfe", rootPath)
+	path := filepath.Join(rootPath, "tfe")
 	err := fs.MkdirAll(path, 0755)
 	if err != nil {
 		return errors.Wrapf(err, "unable to make directory %s", path)
 	}
-	err = applyTree(fs, tmpl.Components[v2.ComponentKindTerraform], tmpl.Common, path, plan.TFE)
+
+	// only create the locals.tf.json template is one doesn't exist yet
+	tfePath := filepath.Join(rootPath, "tfe", "locals.tf.json")
+	_, err = fs.Stat(tfePath)
 	if err != nil {
-		return err
+		if errors.Is(err, os.ErrNotExist) {
+			err = applyTree(fs, tmpl.TFE, tmpl.Common, path, plan.TFE)
+			if err != nil {
+				return err
+			}
+		} else {
+			return errors.Wrapf(err, "unable to stat on %s", tfePath)
+		}
 	}
-	err = applyTree(fs, tmpl.TFE, tmpl.Common, path, plan.TFE)
+	err = applyTree(fs, tmpl.Components[v2.ComponentKindTerraform], tmpl.Common, path, plan.TFE)
 	if err != nil {
 		return err
 	}
@@ -243,7 +253,6 @@ func applyTFE(fs afero.Fs, plan *plan.Plan, tmpl *templates.T) error {
 		}
 	}
 
-	tfePath := filepath.Join("terraform", "tfe", "locals.tf.json")
 	_, err = fs.Stat(tfePath)
 	if err != nil {
 		return errors.Wrapf(err, "unable to stat on %s", tfePath)
diff --git a/apply/apply_test.go b/apply/apply_test.go
index 415ba9688..2b2aec259 100644
--- a/apply/apply_test.go
+++ b/apply/apply_test.go
@@ -1,8 +1,10 @@
 package apply
 
 import (
+	"encoding/json"
 	"errors"
 	"fmt"
+	"io"
 	"io/ioutil"
 	"math/rand"
 	"os"
@@ -429,6 +431,115 @@ func TestApplyModuleInvocation(t *testing.T) {
 	r.Equal(expected, string(i))
 }
 
+func TestTFEConfigOmitEmpty(t *testing.T) {
+	r := require.New(t)
+	testFS, d, err := util.TestFs()
+	r.NoError(err)
+	defer os.RemoveAll(d)
+	pwdFS, err := util.PwdFs()
+	r.NoError(err)
+	afs := afero.NewCopyOnWriteFs(pwdFS, testFS)
+
+	plan := &plan.Plan{
+		TFE: &plan.TFEConfig{},
+		Envs: map[string]plan.Env{
+			"prod": {
+				Components: map[string]plan.Component{
+					"test": {},
+				},
+				Env: "prod",
+			},
+		},
+	}
+	existingLocals := LocalsTFE{
+		Locals: &Locals{
+			Envs: map[string]map[string]*TFEWorkspace{
+				"prod": {
+					"test": &TFEWorkspace{},
+				},
+			},
+		},
+	}
+	path := fmt.Sprintf("%s/tfe", rootPath)
+	err = afs.MkdirAll(path, 0755)
+	r.NoError(err)
+	localsPath := filepath.Join("terraform", "tfe", "locals.tf.json")
+	existingLocalsFile, err := afs.OpenFile(localsPath, os.O_RDWR|os.O_CREATE|os.O_TRUNC, 0755)
+	r.NoError(err)
+	err = json.NewEncoder(existingLocalsFile).Encode(&existingLocals)
+	r.NoError(err)
+	existingLocalsFile.Close()
+
+	err = applyTFE(afs, plan, templates.Templates)
+	r.NoError(err)
+	alteredLocalsFile, err := afs.Open(localsPath)
+	r.NoError(err)
+	b, err := io.ReadAll(alteredLocalsFile)
+	r.NoError(err)
+	r.Equal(
+		strings.Join(strings.Fields(`{"locals":{"envs":{"prod":{"test":{}}}}}`), ""),
+		strings.Join(strings.Fields(string(b)), ""))
+}
+
+func TestTFEConfig(t *testing.T) {
+	r := require.New(t)
+	testFS, d, err := util.TestFs()
+	r.NoError(err)
+	defer os.RemoveAll(d)
+	pwdFS, err := util.PwdFs()
+	r.NoError(err)
+	afs := afero.NewCopyOnWriteFs(pwdFS, testFS)
+
+	plan := &plan.Plan{
+		TFE: &plan.TFEConfig{},
+		Envs: map[string]plan.Env{
+			"prod": {
+				Components: map[string]plan.Component{
+					"test": {},
+				},
+				Env: "prod",
+			},
+		},
+	}
+	emptyTrigger := []string{}
+	tfVersion := "0.13.5"
+	existingLocals := LocalsTFE{
+		Locals: &Locals{
+			Envs: map[string]map[string]*TFEWorkspace{
+				"prod": {
+					"test": &TFEWorkspace{
+						TriggerPrefixes:  &emptyTrigger,
+						TerraformVersion: &tfVersion,
+					},
+				},
+			},
+		},
+	}
+	path := fmt.Sprintf("%s/tfe", rootPath)
+	err = afs.MkdirAll(path, 0755)
+	r.NoError(err)
+	localsPath := filepath.Join("terraform", "tfe", "locals.tf.json")
+	existingLocalsFile, err := afs.OpenFile(localsPath, os.O_RDWR|os.O_CREATE|os.O_TRUNC, 0755)
+	r.NoError(err)
+	err = json.NewEncoder(existingLocalsFile).Encode(&existingLocals)
+	r.NoError(err)
+	existingLocalsFile.Close()
+
+	err = applyTFE(afs, plan, templates.Templates)
+	r.NoError(err)
+	locals := LocalsTFE{}
+	alteredLocalsFile, err := afs.Open(localsPath)
+	r.NoError(err)
+	err = json.NewDecoder(alteredLocalsFile).Decode(&locals)
+	r.NoError(err)
+	_, ok := locals.Locals.Envs["prod"]
+	r.True(ok)
+	_, ok = locals.Locals.Envs["prod"]["test"]
+	r.True(ok)
+	r.Equal(*existingLocals.Locals.Envs["prod"]["test"].TerraformVersion, *locals.Locals.Envs["prod"]["test"].TerraformVersion)
+	r.Equal(*existingLocals.Locals.Envs["prod"]["test"].TriggerPrefixes, *locals.Locals.Envs["prod"]["test"].TriggerPrefixes)
+}
+
 func TestApplyModuleInvocationWithEmptyVariables(t *testing.T) {
 	r := require.New(t)
 	testFs, d, err := util.TestFs()