diff --git a/shade/tests/unit/test_create_server.py b/shade/tests/unit/test_create_server.py
index 0e2855e7c..d822df7d4 100644
--- a/shade/tests/unit/test_create_server.py
+++ b/shade/tests/unit/test_create_server.py
@@ -376,7 +376,8 @@ class TestCreateServer(base.RequestsMockTestCase):
         Test that a server passed user-data sends it base64 encoded.
         """
         user_data = self.getUniqueString('user_data')
-        user_data_b64 = base64.b64encode(user_data).decode('utf-8')
+        user_data_b64 = base64.b64encode(
+            user_data.encode('utf-8')).decode('utf-8')
         fake_server = fakes.make_fake_server('1234', '', 'BUILD')
         fake_server['user_data'] = user_data
 
diff --git a/tox.ini b/tox.ini
index 52a9274c1..558f58721 100644
--- a/tox.ini
+++ b/tox.ini
@@ -5,7 +5,6 @@ skipsdist = True
 
 [testenv]
 usedevelop = True
-basepython = {env:SHADE_TOX_PYTHON:python2}
 passenv = UPPER_CONSTRAINTS_FILE
 install_command = {toxinidir}/tools/tox_install.sh {env:UPPER_CONSTRAINTS_FILE:https://git.openstack.org/cgit/openstack/requirements/plain/upper-constraints.txt} {opts} {packages}
 setenv =
@@ -20,11 +19,13 @@ commands = stestr run {posargs}
            stestr slowest
 
 [testenv:functional]
+basepython = {env:SHADE_TOX_PYTHON:python2}
 passenv = OS_* SHADE_* UPPER_CONSTRAINTS_FILE
 commands = stestr --test-path ./shade/tests/functional run --serial {posargs}
            stestr slowest
 
 [testenv:functional-tips]
+basepython = {env:SHADE_TOX_PYTHON:python2}
 passenv = OS_* SHADE_* UPPER_CONSTRAINTS_FILE
 whitelist_externals = bash
 commands =