bundle exec cucumber features fails on thoughtbot/paperclip

gistfile1.txt

Failing Scenarios:
cucumber features/basic_integration.feature:11 # Scenario: Filesystem integration test
cucumber features/rake_tasks.feature:14 # Scenario: Paperclip refresh thumbnails task

Because of this:

Feature: Rake tasks

  Background:                                                                           # features/rake_tasks.feature:3
    Given I generate a new rails application                                            # features/step_definitions/rails_steps.rb:1
      No such file or directory - rails -v (Errno::ENOENT)
      ./features/support/rails.rb:31:in ``'
      ./features/support/rails.rb:31:in `framework_version'
      ./features/support/rails.rb:27:in `framework_version?'
      ./features/support/rails.rb:35:in `new_application_command'
      ./features/step_definitions/rails_steps.rb:3:in `/^I generate a new rails application$/'
      features/rake_tasks.feature:4:in `Given I generate a new rails application'
    And I run a rails generator to generate a "User" scaffold with "name:string"        # features/step_definitions/rails_steps.rb:21