diff --git a/.eslintrc b/.eslintrc
index d0dd64c..0a918b9 100644
--- a/.eslintrc
+++ b/.eslintrc
@@ -1,4 +1,7 @@
 {
   "root": true,
-  "extends": "vue"
+  "extends": "vue",
+  "env": {
+    "mocha": true
+  }
 }
diff --git a/README.md b/README.md
index 66fa388..9a42c15 100644
--- a/README.md
+++ b/README.md
@@ -1,7 +1,13 @@
-# vueify [![Build Status](https://circleci.com/gh/vuejs/vueify.svg?style=shield)](https://circleci.com/gh/vuejs/vueify) [![npm version](https://badge.fury.io/js/vueify.svg)](http://badge.fury.io/js/vueify)
+# THIS REPOSITORY IS DEPRECATED
+
+> Note: We are concentrating our efforts on supporting webpack and rollup.
+
+## vueify [![Build Status](https://circleci.com/gh/vuejs/vueify.svg?style=shield)](https://circleci.com/gh/vuejs/vueify) [![npm version](https://badge.fury.io/js/vueify.svg)](http://badge.fury.io/js/vueify)
 
 > [Browserify](http://browserify.org/) transform for [Vue.js](http://vuejs.org/) components, with scoped CSS and component hot-reloading.
 
+**NOTE: master branch now hosts version ^9.0, which only works with Vue ^2.0. Vueify 8.x which works with Vue 1.x is in the [8.x branch](https://github.com/vuejs/vueify/tree/8.x).**
+
 This transform allows you to write your components in this format:
 
 ``` html
@@ -269,7 +275,7 @@ npm install browserify-hmr --save-dev
 watchify -p browserify-hmr index.js -o bundle.js
 ```
 
-You can scaffold a hot-reload enabled project easily using `vue-cli` and the [this template](https://github.com/vuejs-templates/browserify-simple-2.0).
+You can scaffold a hot-reload enabled project easily using `vue-cli` and the [this template](https://github.com/vuejs-templates/browserify-simple).
 
 ## CSS Extraction
 
@@ -294,6 +300,14 @@ browserify('./main.js')
 
 This only works for vueify 9+. For Vue 1.x / vueify 8.x you can use [vueify-extract-css](https://github.com/rawcreative/vueify-extract-css).
 
+## Building for Production
+
+When building for production, follow these steps to ensure smaller bundle size:
+
+1. Make sure `process.env.NODE_ENV === "production"`. This tells `vueify` to avoid including hot-reload related code.
+
+2. Apply a global [envify](https://github.com/hughsk/envify) transform to your bundle. This allows the minifier to strip out all the warnings in Vue's source code wrapped in env variable conditional blocks.
+
 ## Compiler API
 
 The compiler API (originally `vue-component-compiler`) is also exposed:
diff --git a/index.js b/index.js
index 1bb2933..d789a83 100644
--- a/index.js
+++ b/index.js
@@ -6,6 +6,7 @@ module.exports = function vueify (file, options) {
     return through()
   }
 
+  compiler.loadConfig()
   compiler.applyConfig(options)
   compiler.applyConfig({
     sourceMap: options._flags.debug
diff --git a/lib/compiler.js b/lib/compiler.js
index 4bf8f50..cde3d99 100644
--- a/lib/compiler.js
+++ b/lib/compiler.js
@@ -60,6 +60,10 @@ compiler.applyConfig = function (config) {
 }
 
 compiler.compile = function (content, filePath, cb) {
+  var isProduction = process.env.NODE_ENV === 'production'
+  var isServer = process.env.VUE_ENV === 'server'
+  var isTest = !!process.env.VUEIFY_TEST
+
   // generate css scope id
   var id = 'data-v-' + genId(filePath)
   // parse the component into parts
@@ -96,7 +100,7 @@ compiler.compile = function (content, filePath, cb) {
     var map = null
     // styles
     var style = resolvedParts.styles.join('\n')
-    if (style) {
+    if (style && !isServer) {
       // emit style
       compiler.emit('style', {
         file: filePath,
@@ -126,16 +130,30 @@ compiler.compile = function (content, filePath, cb) {
     // template
     var template = resolvedParts.template
     if (template) {
+      if (!isProduction && !isServer) {
+        output +=
+          'if (__vue__options__.functional) {console.error("' +
+            '[vueify] functional components are not supported and ' +
+            'should be defined in plain js files using render functions.' +
+          '")}\n'
+      }
+      var beforeLines
+      if (map) {
+        beforeLines = output.split(splitRE).length
+      }
       output +=
         '__vue__options__.render = ' + template.render + '\n' +
         '__vue__options__.staticRenderFns = ' + template.staticRenderFns + '\n'
+      if (map) {
+        addTemplateMapping(content, parts, output, map, beforeLines)
+      }
     }
     // scoped CSS id
     if (hasScopedStyle) {
       output += '__vue__options__._scopeId = "' + id + '"\n'
     }
     // hot reload
-    if (process.env.NODE_ENV !== 'production' && !process.env.VUEIFY_TEST) {
+    if (!isProduction && !isTest && !isServer) {
       output +=
         'if (module.hot) {(function () {' +
         '  var hotAPI = require("' + hotReloadAPIPath + '")\n' +
@@ -194,10 +212,29 @@ compiler.compile = function (content, filePath, cb) {
         })
       }
     })
+    map._hashedFilename = hashedFilename
     return map
   }
 }
 
+function addTemplateMapping (content, parts, output, map, beforeLines) {
+  var afterLines = output.split(splitRE).length
+  var templateLine = content.slice(0, parts.template.start).split(splitRE).length
+  for (; beforeLines < afterLines; beforeLines++) {
+    map.addMapping({
+      source: map._hashedFilename,
+      generated: {
+        line: beforeLines,
+        column: 0
+      },
+      original: {
+        line: templateLine,
+        column: 0
+      }
+    })
+  }
+}
+
 function processTemplate (part, filePath, parts) {
   if (!part) return Promise.resolve()
   var template = getContent(part, filePath)
diff --git a/lib/compilers/babel.js b/lib/compilers/babel.js
index d999bfa..be317b4 100644
--- a/lib/compilers/babel.js
+++ b/lib/compilers/babel.js
@@ -1,5 +1,6 @@
 var fs = require('fs')
 var path = require('path')
+var json = require('json5')
 var assign = require('object-assign')
 var ensureRequire = require('../ensure-require')
 
@@ -16,27 +17,27 @@ var babelOptions = fs.existsSync(babelRcPath)
 function getBabelRc () {
   var rc
   try {
-    rc = JSON.parse(fs.readFileSync(babelRcPath, 'utf-8'))
+    rc = json.parse(fs.readFileSync(babelRcPath, 'utf-8'))
   } catch (e) {
     throw new Error('[vueify] Your .babelrc seems to be incorrectly formatted.')
   }
   return rc
 }
 
-if (babelOptions === defaultBabelOptions) {
-  try {
-    ensureRequire('babel', ['babel-preset-es2015', 'babel-runtime', 'babel-plugin-transform-runtime'])
-  } catch (e) {
-    console.error(e.message)
-    console.error(
-      '\n^^^ You are seeing this because you are using Vueify\'s default babel ' +
-      'configuration. You can override this with .babelrc or the babel option ' +
-      'in vue.config.js.'
-    )
+module.exports = function (raw, cb, compiler, filePath) {
+  if ((compiler.options.babel || babelOptions) === defaultBabelOptions) {
+    try {
+      ensureRequire('babel', ['babel-preset-es2015', 'babel-runtime', 'babel-plugin-transform-runtime'])
+    } catch (e) {
+      console.error(e.message)
+      console.error(
+        '\n^^^ You are seeing this because you are using Vueify\'s default babel ' +
+        'configuration. You can override this with .babelrc or the babel option ' +
+        'in vue.config.js.'
+      )
+    }
   }
-}
 
-module.exports = function (raw, cb, compiler, filePath) {
   try {
     var babel = require('babel-core')
     var options = assign({
diff --git a/lib/gen-id.js b/lib/gen-id.js
index 25281ae..8c9621d 100644
--- a/lib/gen-id.js
+++ b/lib/gen-id.js
@@ -1,8 +1,8 @@
 // utility for generating a uid for each component file
 // used in scoped CSS rewriting
-var fileUid = 1
-var fileRegistry = Object.create(null)
+var hash = require('hash-sum')
+var cache = Object.create(null)
 
 module.exports = function genId (file) {
-  return fileRegistry[file] || (fileRegistry[file] = fileUid++)
+  return cache[file] || (cache[file] = hash(file))
 }
diff --git a/lib/style-rewriter.js b/lib/style-rewriter.js
index 9881524..1195799 100644
--- a/lib/style-rewriter.js
+++ b/lib/style-rewriter.js
@@ -40,18 +40,32 @@ var addId = postcss.plugin('add-id', function () {
  */
 
 module.exports = function (id, css, scoped, options) {
-  var key = id + '!!' + css
+  var key = id + '!!' + scoped + '!!' + css
   var val = cache.get(key)
   if (val) {
     return Promise.resolve(val)
   } else {
-    var plugins = options.postcss
-      ? options.postcss.slice()
-      : []
+    var plugins = []
+    var opts = {}
+
+    if (options.postcss instanceof Array) {
+      plugins = options.postcss.slice()
+    } else if (options.postcss instanceof Object) {
+      plugins = options.postcss.plugins || []
+      opts = options.postcss.options
+    }
+
     // scoped css rewrite
-    if (scoped) {
+    // make sure the addId plugin is only pushed once
+    if (scoped && plugins.indexOf(addId) === -1) {
       plugins.push(addId)
     }
+
+    // remove the addId plugin if the style block is not scoped
+    if (!scoped && plugins.indexOf(addId) !== -1) {
+      plugins.splice(plugins.indexOf(addId), 1)
+    }
+
     // minification
     if (process.env.NODE_ENV === 'production') {
       plugins.push(require('cssnano')(assign({
@@ -60,10 +74,11 @@ module.exports = function (id, css, scoped, options) {
     }
     currentId = id
     return postcss(plugins)
-      .process(css)
+      .process(css, opts)
       .then(function (res) {
         cache.set(key, res.css)
         return res.css
       })
   }
 }
+
diff --git a/lib/template-compiler.js b/lib/template-compiler.js
index 3824c37..51314b9 100644
--- a/lib/template-compiler.js
+++ b/lib/template-compiler.js
@@ -1,5 +1,6 @@
 var chalk = require('chalk')
 var vueCompiler = require('vue-template-compiler')
+var transpile = require('vue-template-es2015-compiler')
 
 module.exports = function compileTemplate (template, compiler) {
   var compiled = vueCompiler.compile(template)
@@ -17,5 +18,5 @@ module.exports = function compileTemplate (template, compiler) {
 }
 
 function toFunction (code) {
-  return 'function(){' + code + '}'
+  return transpile('function render () {' + code + '}')
 }
diff --git a/package.json b/package.json
index ecd6cb9..c1caee7 100644
--- a/package.json
+++ b/package.json
@@ -1,6 +1,6 @@
 {
   "name": "vueify",
-  "version": "9.1.0",
+  "version": "9.4.1",
   "description": "Vue component transform for Browserify",
   "main": "index.js",
   "repository": {
@@ -31,8 +31,10 @@
     "postcss-selector-parser": "^2.0.0",
     "source-map": "^0.5.6",
     "through": "^2.3.6",
+    "json5": "^0.5.1",
     "vue-hot-reload-api": "^2.0.1",
-    "vue-template-compiler": "^2.0.0-alpha.3"
+    "vue-template-compiler": "^2.0.0-alpha.8",
+    "vue-template-es2015-compiler": "^1.2.2"
   },
   "devDependencies": {
     "babel-core": "^6.0.0",
@@ -44,6 +46,7 @@
     "coffee-script": "^1.10.0",
     "eslint": "^2.13.0",
     "eslint-config-vue": "^1.0.3",
+    "eslint-plugin-html": "^1.5.3",
     "jade": "^1.11.0",
     "jsdom": "^9.2.1",
     "less": "^2.5.1",
diff --git a/plugins/extract-css.js b/plugins/extract-css.js
index 740bb80..e3331e9 100644
--- a/plugins/extract-css.js
+++ b/plugins/extract-css.js
@@ -18,21 +18,16 @@ module.exports = function (b, opts) {
         outPath.write(css)
         outPath.end()
       } else if (typeof outPath === 'string') {
-        fs.writeFile(outPath, css)
+        fs.writeFile(outPath, css, function () {})
       }
     })
   })
 
-  b.on('reset', listen)
-  listen()
-
-  function listen () {
-    b.on('transform', function (tr, file) {
-      if (tr.vueify) {
-        tr.on('vueify-style', function (e) {
-          styles[e.file] = e.style
-        })
-      }
-    })
-  }
+  b.on('transform', function (tr, file) {
+    if (tr.vueify) {
+      tr.on('vueify-style', function (e) {
+        styles[e.file] = e.style
+      })
+    }
+  })
 }
diff --git a/test/fixtures/style-export.vue b/test/fixtures/style-export.vue
new file mode 100644
index 0000000..c3311de
--- /dev/null
+++ b/test/fixtures/style-export.vue
@@ -0,0 +1,3 @@
+<style>
+h2 {color: red;}
+</style>
diff --git a/test/test.js b/test/test.js
index 5081c87..dfcf92a 100644
--- a/test/test.js
+++ b/test/test.js
@@ -3,13 +3,13 @@ process.env.VUEIFY_TEST = true
 const fs = require('fs')
 const path = require('path')
 const expect = require('chai').expect
-const hash = require('hash-sum')
 const rimraf = require('rimraf')
 const mkdirp = require('mkdirp')
 const browserify = require('browserify')
 const vueify = require('../index')
 const jsdom = require('jsdom')
 const vueCompiler = require('vue-template-compiler')
+const transpile = require('vue-template-es2015-compiler')
 const genId = require('../lib/gen-id')
 
 const tempDir = path.resolve(__dirname, './temp')
@@ -37,9 +37,21 @@ function test (file, assert) {
   })
 }
 
+function testCssExtract (file, assert) {
+  it(file, done => {
+    fs.writeFileSync(mockEntry, 'window.vueModule = require("../fixtures/' + file + '.vue")')
+    browserify(mockEntry)
+      .transform(vueify)
+      .plugin('./plugins/extract-css', { out: { write: assert, end: done }})
+      .bundle((err, buf) => {
+        if (err) return done(err)
+      })
+  })
+}
+
 function assertRenderFn (options, template) {
   const compiled = vueCompiler.compile(template)
-  expect(options.render.toString()).to.equal('function (){' + compiled.render + '}')
+  expect(options.render.toString()).to.equal(transpile('function render() {' + compiled.render + '}'))
 }
 
 describe('vueify', () => {
@@ -122,4 +134,8 @@ describe('vueify', () => {
     var id = 'data-v-' + genId(require.resolve('./fixtures/media-query.vue'))
     expect(style).to.contain('@media print {\n  .foo[' + id + '] {\n    color: #000;\n  }\n}')
   })
+
+  testCssExtract('style-export', css => {
+    expect(css).to.equal('h2 {color: red;}')
+  })
 })