diff --git a/materialsystem/cmaterial.cpp b/materialsystem/cmaterial.cpp
index 90f53d6b..faf2540e 100644
--- a/materialsystem/cmaterial.cpp
+++ b/materialsystem/cmaterial.cpp
@@ -2378,15 +2378,12 @@ void CMaterial::ReloadTextures( void )
 	IMaterialVar **ppVars = GetShaderParams();
 	for( i = 0; i < nParams; i++ )
 	{
-		if( ppVars[i] )		
+		if( ppVars[i] )
 		{
 			if( ppVars[i]->IsTexture() )
 			{
 				ITextureInternal *pTexture = ( ITextureInternal * )ppVars[i]->GetTextureValue();
-				if( !IsTextureInternalEnvCubemap( pTexture ) )
-				{
-					pTexture->Download();
-				}
+				pTexture->Download();
 			}
 		}
 	}
diff --git a/materialsystem/cmaterialvar.cpp b/materialsystem/cmaterialvar.cpp
index ce85ddfb..37e9a743 100644
--- a/materialsystem/cmaterialvar.cpp
+++ b/materialsystem/cmaterialvar.cpp
@@ -426,7 +426,7 @@ void CMaterialVar::CleanUpData()
 
 	case MATERIAL_VAR_TYPE_TEXTURE:
 		// garymcthack
-		if( m_pTexture && !IsTextureInternalEnvCubemap( m_pTexture ) )
+		if( m_pTexture )
 		{
 			m_pTexture->DecrementReferenceCount();
 			if ( g_bDeleteUnreferencedTexturesEnabled )
@@ -731,16 +731,8 @@ const char *CMaterialVar::GetStringValue( void ) const
 		}
 
 	case MATERIAL_VAR_TYPE_TEXTURE:
-		// check for env_cubemap
-		if( IsTextureInternalEnvCubemap( m_pTexture ) )
-		{
-			return "env_cubemap";
-		}
-		else
-		{
-			Q_snprintf( s_CharBuf, sizeof( s_CharBuf ), "%s", m_pTexture->GetName() );
-			return s_CharBuf;
-		}
+		Q_snprintf( s_CharBuf, sizeof( s_CharBuf ), "%s", m_pTexture->GetName() );
+		return s_CharBuf;
 	case MATERIAL_VAR_TYPE_MATERIAL:
 		Q_snprintf( s_CharBuf, sizeof( s_CharBuf ), "%s", ( m_pMaterialValue ? m_pMaterialValue->GetName() : "" ) );
 		return s_CharBuf;
@@ -878,14 +870,11 @@ ITexture *CMaterialVar::GetTextureValue( void )
 	
 	if( m_Type == MATERIAL_VAR_TYPE_TEXTURE )
 	{
-		if ( !IsTextureInternalEnvCubemap( m_pTexture ) )
-		{
-			retVal = static_cast<ITexture *>( m_pTexture );
-		}
-		else
-		{
+		if ( strcmp(m_pTexture->GetName(), "bitch_cubemap") == 0 )
 			retVal = MaterialSystem()->GetLocalCubemap();
-		}
+		else
+			retVal = static_cast<ITexture *>( m_pTexture );
+
 		if( !retVal )
 		{
 			static int bitchCount = 0;
@@ -945,7 +934,7 @@ void CMaterialVar::SetTextureValue( ITexture *texture )
 
 	// Avoid the garymcthack in CShaderSystem::LoadCubeMap by ensuring we're not using 
 	// the internal env cubemap.
-	if ( ThreadInMainThread() && !IsTextureInternalEnvCubemap( static_cast<ITextureInternal*>( texture ) ) )
+	if ( ThreadInMainThread() )
 	{
 		ITextureInternal* pTexInternal = assert_cast<ITextureInternal *>( texture );
 		TextureManager()->RequestAllMipmaps( pTexInternal );
@@ -994,10 +983,8 @@ void CMaterialVar::SetTextureValue( ITexture *texture )
 	if ( !m_bFakeMaterialVar && m_pMaterial && (m_pMaterial == MaterialSystem()->GetCurrentMaterial()))
 		g_pShaderAPI->FlushBufferedPrimitives();
 
-	if( pTexImp && !IsTextureInternalEnvCubemap( pTexImp ) )
-	{
+	if( pTexImp )
 		pTexImp->IncrementReferenceCount();
-	}
 
 	CleanUpData();
 	m_pTexture = pTexImp;
diff --git a/materialsystem/mat_stub.h b/materialsystem/mat_stub.h
index 051079fe..300813c7 100644
--- a/materialsystem/mat_stub.h
+++ b/materialsystem/mat_stub.h
@@ -1,11 +1,157 @@
 #ifndef MAT_STUB_H
 #define MAT_STUB_H
+#include "tier1/convar.h"
 #include "materialsystem/itexture.h"
+#include "itextureinternal.h"
 
 // ---------------------------------------------------------------------------------------- //
 // ITexture dummy implementation.
 // ---------------------------------------------------------------------------------------- //
 
+class CDummyTextureInternal : public ITextureInternal
+{
+public:
+	CDummyTextureInternal( const char *texture_name = "dummy_texture" )
+	{
+		Q_strncpy( m_szTextureName, texture_name, sizeof(m_szTextureName) );
+	}
+
+	virtual void Bind( Sampler_t sampler ) {};
+	virtual void Bind( Sampler_t sampler1, int nFrame, Sampler_t sampler2 = (Sampler_t) -1 ) { };
+
+	// Methods associated with reference counting
+	virtual int GetReferenceCount() { return 0; };
+
+	virtual void GetReflectivity( Vector& reflectivity ) {};
+
+	// Set this as the render target, return false for failure
+	virtual bool SetRenderTarget( int nRenderTargetID ) { return false; };
+
+	// Releases the texture's hw memory
+	virtual void ReleaseMemory() {};
+
+	// Called before Download() on restore. Gives render targets a change to change whether or
+	// not they force themselves to have a separate depth buffer due to AA.
+	virtual void OnRestore() {};
+
+	// Resets the texture's filtering and clamping mode
+	virtual void SetFilteringAndClampingMode( bool bOnlyLodValues = false ) {};
+
+	// Used by tools.... loads up the non-fallback information about the texture 
+	virtual void Precache() {};
+
+	// Stretch blit the framebuffer into this texture.
+	virtual void CopyFrameBufferToMe( int nRenderTargetID = 0, Rect_t *pSrcRect = NULL, Rect_t *pDstRect = NULL ) {};
+	virtual void CopyMeToFrameBuffer( int nRenderTargetID = 0, Rect_t *pSrcRect = NULL, Rect_t *pDstRect = NULL ) {};
+
+	// Get the shaderapi texture handle associated w/ a particular frame
+	virtual ShaderAPITextureHandle_t GetTextureHandle( int nFrame, int nTextureChannel =0 ) { return 0; };
+
+	static void Destroy( ITextureInternal *pTexture, bool bSkipTexMgrCheck = false ) { };
+
+	// Set this as the render target, return false for failure
+	virtual bool SetRenderTarget( int nRenderTargetID, ITexture* pDepthTexture ) { return true; };
+
+	// Bind this to a vertex texture sampler
+	virtual void BindVertexTexture( VertexTextureSampler_t sampler, int frameNum = 0 ) {};
+
+	virtual void MarkAsPreloaded( bool bSet ) {};
+	virtual bool IsPreloaded() const { return true; };
+
+	virtual void MarkAsExcluded( bool bSet, int nDimensionsLimit ) {};
+	virtual bool UpdateExcludedState( void ) { return false; };
+
+	virtual bool IsTempRenderTarget( void ) const { return false; };
+
+	// Reload any files the texture is responsible for.
+	virtual void ReloadFilesInList( IFileList *pFilesToReload ) { };
+
+	virtual bool AsyncReadTextureFromFile( IVTFTexture* pVTFTexture, unsigned int nAdditionalCreationFlags ) { return false; };
+	virtual void AsyncCancelReadTexture() {};
+
+	// Map and unmap. These can fail. And can cause a very significant perf penalty. Be very careful with them.
+	virtual void Map( void** pOutDst, int* pOutPitch ) {};
+	virtual void Unmap() {};
+
+	// Texture streaming!
+	virtual ResidencyType_t GetCurrentResidence() const { return RESIDENT_NONE; };
+	virtual ResidencyType_t GetTargetResidence() const { return RESIDENT_NONE; };
+	virtual bool MakeResident( ResidencyType_t newResidence ) {};
+	virtual void UpdateLodBias() {};
+
+	// Various texture polling methods
+	virtual const char *GetName( void ) const { return m_szTextureName; }
+	virtual int GetMappingWidth() const { return 512; }
+	virtual int GetMappingHeight() const { return 512; }
+	virtual int GetActualWidth() const { return 512; }
+	virtual int GetActualHeight() const { return 512; }
+	virtual int GetNumAnimationFrames() const { return 0; }
+	virtual bool IsTranslucent() const { return false; }
+	virtual bool IsMipmapped() const { return false; }
+
+	virtual void GetLowResColorSample( float s, float t, float *color ) const {}
+
+	virtual void *GetResourceData( uint32 eDataType, size_t *pNumBytes ) const
+	{
+		return NULL;
+	}
+	
+	// Methods associated with reference count
+	virtual void IncrementReferenceCount( void ) {}
+	virtual void DecrementReferenceCount( void ) {}
+
+	// Used to modify the texture bits (procedural textures only)
+	virtual void SetTextureRegenerator( ITextureRegenerator *pTextureRegen ) {}
+
+	// Reconstruct the texture bits in HW memory
+
+	// If rect is not specified, reconstruct all bits, otherwise just
+	// reconstruct a subrect.
+	virtual void Download( Rect_t *pRect = 0, int nAdditionalCreationFlags = 0 ) {}
+
+	// Uses for stats. . .get the approximate size of the texture in it's current format.
+	virtual int GetApproximateVidMemBytes( void ) const { return 64; }
+
+	virtual bool IsError() const { return false; }
+
+	virtual ITexture *GetEmbeddedTexture( int nIndex ) { return NULL; }
+
+	// For volume textures
+	virtual bool IsVolumeTexture() const { return false; }
+	virtual int GetMappingDepth() const { return 1; }
+	virtual int GetActualDepth() const { return 1; }
+
+	virtual ImageFormat GetImageFormat() const { return IMAGE_FORMAT_RGBA8888; }
+	virtual NormalDecodeMode_t GetNormalDecodeMode() const { return NORMAL_DECODE_NONE; }
+
+	// Various information about the texture
+	virtual bool IsRenderTarget() const { return false; }
+	virtual bool IsCubeMap() const { return false; }
+	virtual bool IsNormalMap() const { return false; }
+	virtual bool IsProcedural() const { return false; }
+	virtual void DeleteIfUnreferenced() {}
+
+	virtual void SwapContents( ITexture *pOther ) {}
+
+	virtual unsigned int GetFlags( void ) const { return 0; }
+	virtual void ForceLODOverride( int iNumLodsOverrideUpOrDown ) { NULL; }
+
+#if defined( _X360 )
+	virtual bool ClearTexture( int r, int g, int b, int a ) { return true; }
+	virtual bool CreateRenderTargetSurface( int width, int height, ImageFormat format, bool bSameAsTexture ) { return true; }
+#endif
+
+	// Save texture to a file.
+	virtual bool SaveToFile( const char *fileName ) { return false; }
+
+	void CopyToStagingTexture( ITexture* pDstTex ) {}
+
+	virtual void SetErrorTexture( bool bIsErrorTexture ) { }
+
+private:
+	char m_szTextureName[128];
+};
+
 class CDummyTexture : public ITexture
 {
 public:
diff --git a/materialsystem/shadersystem.cpp b/materialsystem/shadersystem.cpp
index 4414054e..3a52393e 100644
--- a/materialsystem/shadersystem.cpp
+++ b/materialsystem/shadersystem.cpp
@@ -32,6 +32,8 @@
 
 //#define DEBUG_DEPTH 1
 
+CDummyTextureInternal g_BitchCubemapTexture("bitch_cubemap");
+
 //-----------------------------------------------------------------------------
 // Lovely convars
 //-----------------------------------------------------------------------------
@@ -1953,8 +1955,7 @@ void CShaderSystem::LoadTexture( IMaterialVar *pTextureVar, const char *pTexture
 	// Force local cubemaps when using the editor
 	if ( MaterialSystem()->CanUseEditorMaterials() && ( stricmp( pName, "env_cubemap" ) == 0 ) )
 	{
-		// TODO(nillerusr): should work with g_DummyTexture, but now it doesn't work
-		pTexture = (ITextureInternal*)-1;
+		pTexture = &g_BitchCubemapTexture;
 	}
 	else
 	{
@@ -2027,7 +2028,7 @@ void CShaderSystem::LoadCubeMap( IMaterialVar **ppParams, IMaterialVar *pTexture
 	{
 		// don't have to load anything here. . just set the texture value to DummyTexture
 		// special that says to use the cubemap entity.
-		pTextureVar->SetTextureValue(  (ITexture*)-1 );
+		pTextureVar->SetTextureValue( &g_BitchCubemapTexture );
 		SetFlags2( ppParams, MATERIAL_VAR2_USES_ENV_CUBEMAP );
 	}
 	else