diff --git a/.chloggen/deprecate-expandconverter-2.yaml b/.chloggen/deprecate-expandconverter-2.yaml
new file mode 100644
index 00000000000..4375a388747
--- /dev/null
+++ b/.chloggen/deprecate-expandconverter-2.yaml
@@ -0,0 +1,25 @@
+# Use this changelog template to create an entry for release notes.
+
+# One of 'breaking', 'deprecation', 'new_component', 'enhancement', 'bug_fix'
+change_type: breaking
+
+# The name of the component, or a single word describing the area of concern, (e.g. otlpreceiver)
+component: otelcoltest
+
+# A brief description of the change.  Surround your text with quotes ("") if it needs to start with a backtick (`).
+note: The `otelcol.LoadConfig` method no longer sets the `expandconverter`.
+
+# One or more tracking issues or pull requests related to the change
+issues: [10510]
+
+# (Optional) One or more lines of additional information to render under the primary note.
+# These lines will be padded with 2 spaces and then inserted directly into the document.
+# Use pipe (|) for multiline entries.
+subtext:
+
+# Optional: The change log or logs in which this entry should be included.
+# e.g. '[user]' or '[user, api]'
+# Include 'user' if the change is relevant to end users.
+# Include 'api' if there is a change to a library API.
+# Default: '[user]'
+change_logs: [api]
diff --git a/.chloggen/deprecate-expandconverter-3.yaml b/.chloggen/deprecate-expandconverter-3.yaml
new file mode 100644
index 00000000000..ee8001aa4f3
--- /dev/null
+++ b/.chloggen/deprecate-expandconverter-3.yaml
@@ -0,0 +1,25 @@
+# Use this changelog template to create an entry for release notes.
+
+# One of 'breaking', 'deprecation', 'new_component', 'enhancement', 'bug_fix'
+change_type: breaking
+
+# The name of the component, or a single word describing the area of concern, (e.g. otlpreceiver)
+component: ocb
+
+# A brief description of the change.  Surround your text with quotes ("") if it needs to start with a backtick (`).
+note: Collectors built with OCB will no longer include the `expandconverter`
+
+# One or more tracking issues or pull requests related to the change
+issues: [10510]
+
+# (Optional) One or more lines of additional information to render under the primary note.
+# These lines will be padded with 2 spaces and then inserted directly into the document.
+# Use pipe (|) for multiline entries.
+subtext:
+
+# Optional: The change log or logs in which this entry should be included.
+# e.g. '[user]' or '[user, api]'
+# Include 'user' if the change is relevant to end users.
+# Include 'api' if there is a change to a library API.
+# Default: '[user]'
+change_logs: [api]
diff --git a/.chloggen/deprecate-expandconverter.yaml b/.chloggen/deprecate-expandconverter.yaml
new file mode 100644
index 00000000000..770ce3e0164
--- /dev/null
+++ b/.chloggen/deprecate-expandconverter.yaml
@@ -0,0 +1,25 @@
+# Use this changelog template to create an entry for release notes.
+
+# One of 'breaking', 'deprecation', 'new_component', 'enhancement', 'bug_fix'
+change_type: deprecation
+
+# The name of the component, or a single word describing the area of concern, (e.g. otlpreceiver)
+component: expandconverter
+
+# A brief description of the change.  Surround your text with quotes ("") if it needs to start with a backtick (`).
+note: Deprecate `expandconverter`.
+
+# One or more tracking issues or pull requests related to the change
+issues: [10510]
+
+# (Optional) One or more lines of additional information to render under the primary note.
+# These lines will be padded with 2 spaces and then inserted directly into the document.
+# Use pipe (|) for multiline entries.
+subtext:
+
+# Optional: The change log or logs in which this entry should be included.
+# e.g. '[user]' or '[user, api]'
+# Include 'user' if the change is relevant to end users.
+# Include 'api' if there is a change to a library API.
+# Default: '[user]'
+change_logs: [api]
diff --git a/cmd/builder/README.md b/cmd/builder/README.md
index ec8d18c3808..003a7e93f6b 100644
--- a/cmd/builder/README.md
+++ b/cmd/builder/README.md
@@ -24,8 +24,6 @@ processors:
 providers:
   - gomod: go.opentelemetry.io/collector/confmap/provider/fileprovider v0.99.0
 
-converters:
-  - gomod: go.opentelemetry.io/collector/confmap/converter/expandconverter v0.99.0
 EOF
 $ builder --config=otelcol-builder.yaml
 $ cat > /tmp/otelcol.yaml <<EOF
diff --git a/cmd/builder/internal/builder/main_test.go b/cmd/builder/internal/builder/main_test.go
index 3dc92e9f2dc..b4f1e11f067 100644
--- a/cmd/builder/internal/builder/main_test.go
+++ b/cmd/builder/internal/builder/main_test.go
@@ -54,7 +54,6 @@ var (
 		"/config/configtls",
 		"/config/internal",
 		"/confmap",
-		"/confmap/converter/expandconverter",
 		"/confmap/provider/envprovider",
 		"/confmap/provider/fileprovider",
 		"/confmap/provider/httpprovider",
diff --git a/cmd/builder/internal/builder/templates/go.mod.tmpl b/cmd/builder/internal/builder/templates/go.mod.tmpl
index ad6fd3f78f6..3ce0e7eb454 100644
--- a/cmd/builder/internal/builder/templates/go.mod.tmpl
+++ b/cmd/builder/internal/builder/templates/go.mod.tmpl
@@ -6,7 +6,6 @@ go 1.21
 
 require (
 	{{if .Distribution.SupportsConfmapFactories -}}
-	go.opentelemetry.io/collector/confmap/converter/expandconverter v{{.Distribution.OtelColVersion}}
 	{{- range .Providers}}
 	{{if .GoMod}}{{.GoMod}}{{end}}
 	{{- end}}
diff --git a/cmd/builder/internal/builder/templates/main.go.tmpl b/cmd/builder/internal/builder/templates/main.go.tmpl
index a1bb7b532dc..b167f1800e8 100644
--- a/cmd/builder/internal/builder/templates/main.go.tmpl
+++ b/cmd/builder/internal/builder/templates/main.go.tmpl
@@ -9,7 +9,6 @@ import (
 	"go.opentelemetry.io/collector/component"
 	{{- if .Distribution.SupportsConfmapFactories}}
 	"go.opentelemetry.io/collector/confmap"
-	"go.opentelemetry.io/collector/confmap/converter/expandconverter"
 	{{- range .Providers}}
 	{{.Name}} "{{.Import}}"
 	{{- end}}
@@ -38,9 +37,6 @@ func main() {
 				{{- if .ConfResolver.DefaultURIScheme }}
 				DefaultScheme: "{{ .ConfResolver.DefaultURIScheme }}",
 				{{- end }}
-				ConverterFactories: []confmap.ConverterFactory{
-					expandconverter.NewFactory(),
-				},
 			},
 		},
 		{{- end}}
diff --git a/cmd/builder/test/core.builder.yaml b/cmd/builder/test/core.builder.yaml
index ab0f73bf1ff..f4828350824 100644
--- a/cmd/builder/test/core.builder.yaml
+++ b/cmd/builder/test/core.builder.yaml
@@ -33,7 +33,6 @@ replaces:
   - go.opentelemetry.io/collector/config/configtls => ${WORKSPACE_DIR}/config/configtls
   - go.opentelemetry.io/collector/config/internal => ${WORKSPACE_DIR}/config/internal
   - go.opentelemetry.io/collector/confmap => ${WORKSPACE_DIR}/confmap
-  - go.opentelemetry.io/collector/confmap/converter/expandconverter => ${WORKSPACE_DIR}/confmap/converter/expandconverter
   - go.opentelemetry.io/collector/confmap/provider/envprovider => ${WORKSPACE_DIR}/confmap/provider/envprovider
   - go.opentelemetry.io/collector/confmap/provider/fileprovider => ${WORKSPACE_DIR}/confmap/provider/fileprovider
   - go.opentelemetry.io/collector/confmap/provider/httpprovider => ${WORKSPACE_DIR}/confmap/provider/httpprovider
diff --git a/cmd/otelcorecol/builder-config.yaml b/cmd/otelcorecol/builder-config.yaml
index 3dfa4b40729..35ca62e4538 100644
--- a/cmd/otelcorecol/builder-config.yaml
+++ b/cmd/otelcorecol/builder-config.yaml
@@ -57,7 +57,6 @@ replaces:
   - go.opentelemetry.io/collector/config/configtls => ../../config/configtls
   - go.opentelemetry.io/collector/config/internal => ../../config/internal
   - go.opentelemetry.io/collector/confmap => ../../confmap
-  - go.opentelemetry.io/collector/confmap/converter/expandconverter => ../../confmap/converter/expandconverter
   - go.opentelemetry.io/collector/confmap/provider/envprovider => ../../confmap/provider/envprovider
   - go.opentelemetry.io/collector/confmap/provider/fileprovider => ../../confmap/provider/fileprovider
   - go.opentelemetry.io/collector/confmap/provider/httpprovider => ../../confmap/provider/httpprovider
diff --git a/cmd/otelcorecol/go.mod b/cmd/otelcorecol/go.mod
index 0305b2251b5..c3ef845882b 100644
--- a/cmd/otelcorecol/go.mod
+++ b/cmd/otelcorecol/go.mod
@@ -9,7 +9,6 @@ toolchain go1.21.12
 require (
 	go.opentelemetry.io/collector/component v0.106.1
 	go.opentelemetry.io/collector/confmap v0.106.1
-	go.opentelemetry.io/collector/confmap/converter/expandconverter v0.106.1
 	go.opentelemetry.io/collector/confmap/provider/envprovider v0.106.1
 	go.opentelemetry.io/collector/confmap/provider/fileprovider v0.106.1
 	go.opentelemetry.io/collector/confmap/provider/httpprovider v0.106.1
@@ -170,8 +169,6 @@ replace go.opentelemetry.io/collector/config/internal => ../../config/internal
 
 replace go.opentelemetry.io/collector/confmap => ../../confmap
 
-replace go.opentelemetry.io/collector/confmap/converter/expandconverter => ../../confmap/converter/expandconverter
-
 replace go.opentelemetry.io/collector/confmap/provider/envprovider => ../../confmap/provider/envprovider
 
 replace go.opentelemetry.io/collector/confmap/provider/fileprovider => ../../confmap/provider/fileprovider
diff --git a/cmd/otelcorecol/main.go b/cmd/otelcorecol/main.go
index 3d288ca5156..3ea4852ceef 100644
--- a/cmd/otelcorecol/main.go
+++ b/cmd/otelcorecol/main.go
@@ -8,7 +8,6 @@ import (
 
 	"go.opentelemetry.io/collector/component"
 	"go.opentelemetry.io/collector/confmap"
-	"go.opentelemetry.io/collector/confmap/converter/expandconverter"
 	envprovider "go.opentelemetry.io/collector/confmap/provider/envprovider"
 	fileprovider "go.opentelemetry.io/collector/confmap/provider/fileprovider"
 	httpprovider "go.opentelemetry.io/collector/confmap/provider/httpprovider"
@@ -36,9 +35,6 @@ func main() {
 					httpsprovider.NewFactory(),
 					yamlprovider.NewFactory(),
 				},
-				ConverterFactories: []confmap.ConverterFactory{
-					expandconverter.NewFactory(),
-				},
 			},
 		},
 	}
diff --git a/confmap/converter/expandconverter/expand.go b/confmap/converter/expandconverter/expand.go
index 2c4af613499..83b8e4b9dd9 100644
--- a/confmap/converter/expandconverter/expand.go
+++ b/confmap/converter/expandconverter/expand.go
@@ -7,13 +7,11 @@ import (
 	"context"
 	"fmt"
 	"os"
-	"regexp"
 
 	"go.uber.org/zap"
 
 	"go.opentelemetry.io/collector/confmap"
 	"go.opentelemetry.io/collector/confmap/internal/envvar"
-	"go.opentelemetry.io/collector/internal/globalgates"
 )
 
 type converter struct {
@@ -25,6 +23,9 @@ type converter struct {
 
 // NewFactory returns a factory for a  confmap.Converter,
 // which expands all environment variables for a given confmap.Conf.
+//
+// Deprecated: [v0.107.0] BASH-style env var expansion is deprecated. Use the `envprovider` instead to expand `${FOO}` and `${env:FOO}`.
+// Using the expandconverter with `confmap.Resolver` will cause double escaping, so `$$$$` -> `$` instead of `$$`.
 func NewFactory() confmap.ConverterFactory {
 	return confmap.NewConverterFactory(newConverter)
 }
@@ -36,6 +37,8 @@ func newConverter(set confmap.ConverterSettings) confmap.Converter {
 	}
 }
 
+// Deprecated: [v0.107.0] BASH-style env var expansion is deprecated. Use the `envprovider` instead to expand `${FOO}` and `${env:FOO}`.
+// Using the expandconverter with `confmap.Resolver` will cause double escaping, so `$$$$` -> `$` instead of `$$`.
 func (c converter) Convert(_ context.Context, conf *confmap.Conf) error {
 	var err error
 	out := make(map[string]any)
@@ -90,19 +93,6 @@ func (c converter) expandEnv(s string) (string, error) {
 			return "$"
 		}
 
-		// Matches on $VAR style environment variables
-		// in order to make sure we don't log a warning for ${VAR}
-		var regex = regexp.MustCompile(fmt.Sprintf(`\$%s`, regexp.QuoteMeta(str)))
-		if _, exists := c.loggedDeprecations[str]; !exists && regex.MatchString(s) {
-			if globalgates.UseUnifiedEnvVarExpansionRules.IsEnabled() {
-				err = fmt.Errorf("variable substitution using $VAR has been deprecated in favor of ${VAR} and ${env:VAR} - please update $%s or temporarily disable the confmap.unifyEnvVarExpansion feature gate", str)
-				return ""
-			}
-			msg := fmt.Sprintf("Variable substitution using $VAR will be deprecated in favor of ${VAR} and ${env:VAR}, please update $%s", str)
-			c.logger.Warn(msg, zap.String("variable", str))
-			c.loggedDeprecations[str] = struct{}{}
-		}
-
 		// For $ENV style environment variables os.Expand returns once it hits a character that isn't an underscore or
 		// an alphanumeric character - so we cannot detect those malformed environment variables.
 		// For ${ENV} style variables we can detect those kinds of env var names!
diff --git a/confmap/converter/expandconverter/expand_test.go b/confmap/converter/expandconverter/expand_test.go
new file mode 100644
index 00000000000..4934bb5a008
--- /dev/null
+++ b/confmap/converter/expandconverter/expand_test.go
@@ -0,0 +1,290 @@
+// Copyright The OpenTelemetry Authors
+// SPDX-License-Identifier: Apache-2.0
+
+package expandconverter
+
+import (
+	"context"
+	"fmt"
+	"path/filepath"
+	"testing"
+
+	"github.com/stretchr/testify/assert"
+	"github.com/stretchr/testify/require"
+	"go.uber.org/zap"
+	"go.uber.org/zap/zapcore"
+	"go.uber.org/zap/zaptest/observer"
+
+	"go.opentelemetry.io/collector/confmap"
+	"go.opentelemetry.io/collector/confmap/confmaptest"
+	"go.opentelemetry.io/collector/confmap/internal/envvar"
+)
+
+func TestNewExpandConverter(t *testing.T) {
+	var testCases = []struct {
+		name string // test case name (also file name containing config yaml)
+	}{
+		{name: "expand-with-no-env.yaml"},
+		{name: "expand-with-partial-env.yaml"},
+		{name: "expand-with-all-env.yaml"},
+	}
+
+	const valueExtra = "some string"
+	const valueExtraMapValue = "some map value"
+	const valueExtraListMapValue = "some list map value"
+	const valueExtraListElement = "some list value"
+	t.Setenv("EXTRA", valueExtra)
+	t.Setenv("EXTRA_MAP_VALUE_1", valueExtraMapValue+"_1")
+	t.Setenv("EXTRA_MAP_VALUE_2", valueExtraMapValue+"_2")
+	t.Setenv("EXTRA_LIST_MAP_VALUE_1", valueExtraListMapValue+"_1")
+	t.Setenv("EXTRA_LIST_MAP_VALUE_2", valueExtraListMapValue+"_2")
+	t.Setenv("EXTRA_LIST_VALUE_1", valueExtraListElement+"_1")
+	t.Setenv("EXTRA_LIST_VALUE_2", valueExtraListElement+"_2")
+
+	expectedCfgMap, errExpected := confmaptest.LoadConf(filepath.Join("testdata", "expand-with-no-env.yaml"))
+	require.NoError(t, errExpected, "Unable to get expected config")
+
+	for _, test := range testCases {
+		t.Run(test.name, func(t *testing.T) {
+			conf, err := confmaptest.LoadConf(filepath.Join("testdata", test.name))
+			require.NoError(t, err, "Unable to get config")
+
+			// Test that expanded configs are the same with the simple config with no env vars.
+			require.NoError(t, createConverter().Convert(context.Background(), conf))
+			assert.Equal(t, expectedCfgMap.ToStringMap(), conf.ToStringMap())
+		})
+	}
+}
+
+func TestNewExpandConverter_EscapedMaps(t *testing.T) {
+	const receiverExtraMapValue = "some map value"
+	t.Setenv("MAP_VALUE", receiverExtraMapValue)
+
+	conf := confmap.NewFromStringMap(
+		map[string]any{
+			"test_string_map": map[string]any{
+				"recv": "$MAP_VALUE",
+			},
+			"test_interface_map": map[any]any{
+				"recv": "$MAP_VALUE",
+			}},
+	)
+	require.NoError(t, createConverter().Convert(context.Background(), conf))
+
+	expectedMap := map[string]any{
+		"test_string_map": map[string]any{
+			"recv": receiverExtraMapValue,
+		},
+		"test_interface_map": map[string]any{
+			"recv": receiverExtraMapValue,
+		}}
+	assert.Equal(t, expectedMap, conf.ToStringMap())
+}
+
+func TestNewExpandConverter_EscapedEnvVars(t *testing.T) {
+	const receiverExtraMapValue = "some map value"
+	t.Setenv("MAP_VALUE_2", receiverExtraMapValue)
+
+	// Retrieve the config
+	conf, err := confmaptest.LoadConf(filepath.Join("testdata", "expand-escaped-env.yaml"))
+	require.NoError(t, err, "Unable to get config")
+
+	expectedMap := map[string]any{
+		"test_map": map[string]any{
+			// $$ -> escaped $
+			"recv.1": "$MAP_VALUE_1",
+			// $$$ -> escaped $ + substituted env var
+			"recv.2": "$" + receiverExtraMapValue,
+			// $$$$ -> two escaped $
+			"recv.3": "$$MAP_VALUE_3",
+			// escaped $ in the middle
+			"recv.4": "some${MAP_VALUE_4}text",
+			// $$$$ -> two escaped $
+			"recv.5": "${ONE}${TWO}",
+			// trailing escaped $
+			"recv.6": "text$",
+			// escaped $ alone
+			"recv.7": "$",
+		}}
+	require.NoError(t, createConverter().Convert(context.Background(), conf))
+	assert.Equal(t, expectedMap, conf.ToStringMap())
+}
+
+func TestNewExpandConverterHostPort(t *testing.T) {
+	t.Setenv("HOST", "127.0.0.1")
+	t.Setenv("PORT", "4317")
+
+	var testCases = []struct {
+		name     string
+		input    map[string]any
+		expected map[string]any
+	}{
+		{
+			name: "brackets",
+			input: map[string]any{
+				"test": "${HOST}:${PORT}",
+			},
+			expected: map[string]any{
+				"test": "127.0.0.1:4317",
+			},
+		},
+		{
+			name: "no brackets",
+			input: map[string]any{
+				"test": "$HOST:$PORT",
+			},
+			expected: map[string]any{
+				"test": "127.0.0.1:4317",
+			},
+		},
+		{
+			name: "mix",
+			input: map[string]any{
+				"test": "${HOST}:$PORT",
+			},
+			expected: map[string]any{
+				"test": "127.0.0.1:4317",
+			},
+		},
+		{
+			name: "reverse mix",
+			input: map[string]any{
+				"test": "$HOST:${PORT}",
+			},
+			expected: map[string]any{
+				"test": "127.0.0.1:4317",
+			},
+		},
+	}
+	for _, tt := range testCases {
+		t.Run(tt.name, func(t *testing.T) {
+			conf := confmap.NewFromStringMap(tt.input)
+			require.NoError(t, createConverter().Convert(context.Background(), conf))
+			assert.Equal(t, tt.expected, conf.ToStringMap())
+		})
+	}
+}
+
+func NewTestConverter() (confmap.Converter, *observer.ObservedLogs) {
+	core, logs := observer.New(zapcore.InfoLevel)
+	conv := converter{loggedDeprecations: make(map[string]struct{}), logger: zap.New(core)}
+	return conv, logs
+}
+
+func TestDeprecatedWarning(t *testing.T) {
+	msgTemplate := `Variable substitution using $VAR will be deprecated in favor of ${VAR} and ${env:VAR}, please update $%s`
+	t.Setenv("HOST", "127.0.0.1")
+	t.Setenv("PORT", "4317")
+
+	t.Setenv("HOST_NAME", "127.0.0.2")
+	t.Setenv("HOSTNAME", "127.0.0.3")
+
+	t.Setenv("BAD!HOST", "127.0.0.2")
+
+	var testCases = []struct {
+		name             string
+		input            map[string]any
+		expectedOutput   map[string]any
+		expectedWarnings []string
+		expectedError    error
+	}{
+		{
+			name: "no warning",
+			input: map[string]any{
+				"test": "${HOST}:${PORT}",
+			},
+			expectedOutput: map[string]any{
+				"test": "127.0.0.1:4317",
+			},
+			expectedWarnings: []string{},
+			expectedError:    nil,
+		},
+		{
+			name: "malformed environment variable",
+			input: map[string]any{
+				"test": "${BAD!HOST}",
+			},
+			expectedOutput: map[string]any{
+				"test": "blah",
+			},
+			expectedWarnings: []string{},
+			expectedError:    fmt.Errorf("environment variable \"BAD!HOST\" has invalid name: must match regex %s", envvar.ValidationRegexp),
+		},
+		{
+			name: "malformed environment variable number",
+			input: map[string]any{
+				"test": "${2BADHOST}",
+			},
+			expectedOutput: map[string]any{
+				"test": "blah",
+			},
+			expectedWarnings: []string{},
+			expectedError:    fmt.Errorf("environment variable \"2BADHOST\" has invalid name: must match regex %s", envvar.ValidationRegexp),
+		},
+		{
+			name: "malformed environment variable unicode",
+			input: map[string]any{
+				"test": "${😊BADHOST}",
+			},
+			expectedOutput: map[string]any{
+				"test": "blah",
+			},
+			expectedWarnings: []string{},
+			expectedError:    fmt.Errorf("environment variable \"😊BADHOST\" has invalid name: must match regex %s", envvar.ValidationRegexp),
+		},
+	}
+
+	for _, tt := range testCases {
+		t.Run(tt.name, func(t *testing.T) {
+			conf := confmap.NewFromStringMap(tt.input)
+			conv, logs := NewTestConverter()
+			err := conv.Convert(context.Background(), conf)
+			assert.Equal(t, tt.expectedError, err)
+			if tt.expectedError == nil {
+				assert.Equal(t, tt.expectedOutput, conf.ToStringMap())
+			}
+			assert.Equal(t, len(tt.expectedWarnings), len(logs.All()))
+			for i, variable := range tt.expectedWarnings {
+				errorMsg := fmt.Sprintf(msgTemplate, variable)
+				assert.Equal(t, errorMsg, logs.All()[i].Message)
+			}
+		})
+	}
+}
+
+func TestNewExpandConverterWithErrors(t *testing.T) {
+	var testCases = []struct {
+		name          string // test case name (also file name containing config yaml)
+		expectedError error
+	}{
+		{
+			name:          "expand-list-error.yaml",
+			expectedError: fmt.Errorf("environment variable \"EXTRA_LIST_^VALUE_2\" has invalid name: must match regex %s", envvar.ValidationRegexp),
+		},
+		{
+			name:          "expand-list-map-error.yaml",
+			expectedError: fmt.Errorf("environment variable \"EXTRA_LIST_MAP_V#ALUE_2\" has invalid name: must match regex %s", envvar.ValidationRegexp),
+		},
+		{
+			name:          "expand-map-error.yaml",
+			expectedError: fmt.Errorf("environment variable \"EX#TRA\" has invalid name: must match regex %s", envvar.ValidationRegexp),
+		},
+	}
+
+	for _, test := range testCases {
+		t.Run(test.name, func(t *testing.T) {
+			conf, err := confmaptest.LoadConf(filepath.Join("testdata", "errors", test.name))
+			require.NoError(t, err, "Unable to get config")
+
+			// Test that expanded configs are the same with the simple config with no env vars.
+			err = createConverter().Convert(context.Background(), conf)
+
+			assert.Equal(t, test.expectedError, err)
+		})
+	}
+}
+
+func createConverter() confmap.Converter {
+	// nolint
+	return NewFactory().Create(confmap.ConverterSettings{Logger: zap.NewNop()})
+}
diff --git a/confmap/converter/expandconverter/go.mod b/confmap/converter/expandconverter/go.mod
index a0b3216d4b4..60b4d680b5b 100644
--- a/confmap/converter/expandconverter/go.mod
+++ b/confmap/converter/expandconverter/go.mod
@@ -1,15 +1,18 @@
+// Deprecated: [v0.107.0] BASH-style env var expansion is deprecated. Use the `envprovider` instead to expand `${FOO}` and `${env:FOO}`.
+// Using the expandconverter with `confmap.Resolver` will cause double escaping, so `$$$$` -> `$` instead of `$$`.
 module go.opentelemetry.io/collector/confmap/converter/expandconverter
 
 go 1.21.0
 
 require (
+	github.com/stretchr/testify v1.9.0
 	go.opentelemetry.io/collector/confmap v0.106.1
-	go.opentelemetry.io/collector/internal/globalgates v0.106.1
 	go.uber.org/goleak v1.3.0
 	go.uber.org/zap v1.27.0
 )
 
 require (
+	github.com/davecgh/go-spew v1.1.1 // indirect
 	github.com/go-viper/mapstructure/v2 v2.0.0 // indirect
 	github.com/hashicorp/go-version v1.7.0 // indirect
 	github.com/knadh/koanf/maps v0.1.1 // indirect
@@ -17,7 +20,9 @@ require (
 	github.com/knadh/koanf/v2 v2.1.1 // indirect
 	github.com/mitchellh/copystructure v1.2.0 // indirect
 	github.com/mitchellh/reflectwalk v1.0.2 // indirect
+	github.com/pmezard/go-difflib v1.0.0 // indirect
 	go.opentelemetry.io/collector/featuregate v1.12.0 // indirect
+	go.opentelemetry.io/collector/internal/globalgates v0.106.1 // indirect
 	go.uber.org/multierr v1.11.0 // indirect
 	gopkg.in/yaml.v3 v3.0.1 // indirect
 )
diff --git a/otelcol/otelcoltest/config.go b/otelcol/otelcoltest/config.go
index 299ee647c91..c47adc3e951 100644
--- a/otelcol/otelcoltest/config.go
+++ b/otelcol/otelcoltest/config.go
@@ -7,7 +7,6 @@ import (
 	"context"
 
 	"go.opentelemetry.io/collector/confmap"
-	"go.opentelemetry.io/collector/confmap/converter/expandconverter"
 	"go.opentelemetry.io/collector/confmap/provider/envprovider"
 	"go.opentelemetry.io/collector/confmap/provider/fileprovider"
 	"go.opentelemetry.io/collector/confmap/provider/httpprovider"
@@ -26,7 +25,6 @@ func LoadConfig(fileName string, factories otelcol.Factories) (*otelcol.Config,
 				yamlprovider.NewFactory(),
 				httpprovider.NewFactory(),
 			},
-			ConverterFactories: []confmap.ConverterFactory{expandconverter.NewFactory()},
 		},
 	})
 	if err != nil {
diff --git a/otelcol/otelcoltest/go.mod b/otelcol/otelcoltest/go.mod
index c32e9f8cbf3..ce8515383c2 100644
--- a/otelcol/otelcoltest/go.mod
+++ b/otelcol/otelcoltest/go.mod
@@ -6,7 +6,6 @@ require (
 	github.com/stretchr/testify v1.9.0
 	go.opentelemetry.io/collector/component v0.106.1
 	go.opentelemetry.io/collector/confmap v0.106.1
-	go.opentelemetry.io/collector/confmap/converter/expandconverter v0.106.1
 	go.opentelemetry.io/collector/confmap/provider/envprovider v0.106.1
 	go.opentelemetry.io/collector/confmap/provider/fileprovider v0.106.1
 	go.opentelemetry.io/collector/confmap/provider/httpprovider v0.106.1
@@ -119,8 +118,6 @@ replace go.opentelemetry.io/collector/otelcol => ../
 
 replace go.opentelemetry.io/collector/confmap/provider/yamlprovider => ../../confmap/provider/yamlprovider
 
-replace go.opentelemetry.io/collector/confmap/converter/expandconverter => ../../confmap/converter/expandconverter
-
 replace go.opentelemetry.io/collector => ../..
 
 replace go.opentelemetry.io/collector/service => ../../service