diff -u b/core/modules/system/config/system.image.yml b/core/modules/system/config/system.image.yml
--- b/core/modules/system/config/system.image.yml
+++ b/core/modules/system/config/system.image.yml
@@ -2,2 +1,0 @@
-gd:
-    jpeg_quality: '75'
diff -u b/core/modules/system/image.gd.inc b/core/modules/system/image.gd.inc
--- b/core/modules/system/image.gd.inc
+++ b/core/modules/system/image.gd.inc
@@ -25,7 +25,7 @@
       '#description' => t('Define the image quality for JPEG manipulations. Ranges from 0 to 100. Higher values mean better image quality but bigger files.'),
       '#min' => 0,
       '#max' => 100,
-      '#default_value' => config('system.image')->get('gd.jpeg_quality'),
+      '#default_value' => config('system.image.gd')->get('jpeg_quality'),
       '#field_suffix' => t('%'),
     );
 
@@ -39,11 +39,12 @@
 
 /**
  * Form submission handler for image_gd_settings().
+ *
  * @see system_image_toolkit_settings_submit
  */
 function image_gd_settings_submit($form, &$form_state) {
-  config('system.image')
-    ->set('gd.jpeg_quality', $form_state['values']['image_jpeg_quality'])
+  config('system.image.gd')
+    ->set('jpeg_quality', $form_state['values']['image_jpeg_quality'])
     ->save();
 }
 
@@ -279,7 +280,7 @@
     return FALSE;
   }
   if ($extension == 'jpeg') {
-    $success = $function($image->resource, $destination, config('system.image')>get('gd.jpeg_quality'));
+    $success = $function($image->resource, $destination, config('system.image.gd')->get('jpeg_quality'));
   }
   else {
     // Always save PNG images with full transparency.
diff -u b/core/modules/system/system.admin.inc b/core/modules/system/system.admin.inc
--- b/core/modules/system/system.admin.inc
+++ b/core/modules/system/system.admin.inc
@@ -1854,33 +1854,32 @@
  * Form builder; Configure site image toolkit usage.
  *
  * @ingroup forms
- * @see system_config_form()
+ * @see system_image_toolkit_settings_submit()
  */
 function system_image_toolkit_settings($form, &$form_state) {
+  $config = config('system.image');
   $toolkits_available = image_get_available_toolkits();
   $current_toolkit = image_get_toolkit();
 
   if (count($toolkits_available) == 0) {
+    $config->set('toolkit', '')->save();
     $form['image_toolkit_help'] = array(
       '#markup' => t("No image toolkits were detected. Drupal includes support for <a href='!gd-link'>PHP's built-in image processing functions</a> but they were not detected on this system. You should consult your system administrator to have them enabled, or try using a third party toolkit.", array('gd-link' => url('http://php.net/gd'))),
     );
     return $form;
   }
 
-  if (count($toolkits_available) > 1) {
-    $form['image_toolkit'] = array(
-      '#type' => 'radios',
-      '#title' => t('Select an image processing toolkit'),
-      '#default_value' => config('system.image')->get('toolkit'),
-      '#options' => $toolkits_available
-    );
-  }
-  else {
-    $form['image_toolkit'] = array(
-      '#type' => 'value',
-      '#value' => $current_toolkit,
-    );
-    config('system.image')->set('toolkit', key($toolkits_available))->save();
+  $form['image_toolkit'] = array(
+    '#type' => 'radios',
+    '#title' => t('Select an image processing toolkit'),
+    '#default_value' => $config->get('toolkit'),
+    '#options' => $toolkits_available,
+    '#access' => count($toolkits_available) > 1,
+  );
+
+  if (count($toolkits_available) == 1) {
+    // Set the image toolkit to the one only available.
+    $config->set('toolkit', key($toolkits_available))->save();
   }
 
   // Get the toolkit's settings form.
@@ -1888,6 +1887,7 @@
   if (function_exists($function)) {
     $form['image_toolkit_settings'] = $function();
   }
+
   return system_config_form($form, $form_state);
 }
 
@@ -1895,13 +1895,13 @@
  * Form submission handler for system_image_toolkit_settings().
  */
 function system_image_toolkit_settings_submit($form, &$form_state) {
-  $current_toolkit = $form_state['values']['image_toolkit'];
   config('system.image')
-    ->set('toolkit', $current_toolkit)
+    ->set('toolkit', $form_state['values']['image_toolkit'])
     ->save();
 
-  // Allow toolkit to save its own seetings.
-  $function = 'image_' . $current_toolkit . '_settings_submit';
+  // Call the form submit handler for the current toolkit. Calling
+  // image_get_toolkit() does the necessary includes.
+  $function = 'image_' . image_get_toolkit() . '_settings_submit';
   if (function_exists($function)) {
     $function($form, $form_state);
   }
diff -u b/core/modules/system/system.install b/core/modules/system/system.install
--- b/core/modules/system/system.install
+++ b/core/modules/system/system.install
@@ -2006,7 +2006,9 @@
 function system_update_8015() {
   update_variables_to_config('system.image', array(
     'image_toolkit' => 'toolkit',
-    'image_jpeg_quality' => 'gd.jpeg_quality',
+  ));
+  update_variables_to_config('system.image.gd', array(
+    'image_jpeg_quality' => 'jpeg_quality',
   ));
 }
 
only in patch2:
unchanged:
--- a/core/modules/image/lib/Drupal/image/Tests/ImageEffectsTest.php
+++ b/core/modules/image/lib/Drupal/image/Tests/ImageEffectsTest.php
@@ -23,7 +23,7 @@ class ImageEffectsTest extends ToolkitTestBase {
   }
 
   function setUp() {
-    parent::setUp('image_test');
+    parent::setUp();
     module_load_include('inc', 'image', 'image.effects');
   }
 
only in patch2:
unchanged:
--- /dev/null
+++ b/core/modules/system/config/system.image.gd.yml
@@ -0,0 +1 @@
+jpeg_quality: '75'
only in patch2:
unchanged:
--- a/core/modules/system/lib/Drupal/system/Tests/Image/ToolkitTestBase.php
+++ b/core/modules/system/lib/Drupal/system/Tests/Image/ToolkitTestBase.php
@@ -19,7 +19,7 @@ abstract class ToolkitTestBase extends WebTestBase {
   protected $image;
 
   function setUp() {
-    parent::setUp('image_test');
+    parent::setUp(array('image', 'image_test'));
 
     // Use the image_test.module's test toolkit.
     $this->toolkit = 'test';