Spring JPA Config IllegalArgumentException: No persistence unit with name found

I am having a weird issue I'm not able to wrap my head around. I have used JPA/Hibernate is Spring before with NO persistence.xml file, Spring handled everything. I'm working on a new project and this time I decided to go all Java Config. I am having some issues with my PersistenceConfig.java, it keeps saying it can't find a persistence unit. If I comment out the line the sets the PersistenceUnitName then it complains IllegalStateException: No persistence units parsed from {classpath*:META-INF/persistence.xml}.

I don't understand why its trying to use a persistence.xml when I use Java Config and not when I use XML. Any solutions?

Here is my PersistenceConfig.java

import org.springframework.beans.factory.annotation.Autowired;
import org.springframework.context.annotation.Bean;
import org.springframework.context.annotation.Configuration;
import org.springframework.core.env.Environment;
import org.springframework.dao.annotation.PersistenceExceptionTranslationPostProcessor;
import org.springframework.data.jpa.repository.config.EnableJpaRepositories;
import org.springframework.jdbc.datasource.lookup.JndiDataSourceLookup;
import org.springframework.orm.jpa.JpaDialect;
import org.springframework.orm.jpa.JpaTransactionManager;
import org.springframework.orm.jpa.JpaVendorAdapter;
import org.springframework.orm.jpa.LocalContainerEntityManagerFactoryBean;
import org.springframework.orm.jpa.vendor.HibernateJpaDialect;
import org.springframework.orm.jpa.vendor.HibernateJpaVendorAdapter;
import org.springframework.transaction.PlatformTransactionManager;
import org.springframework.transaction.annotation.EnableTransactionManagement;

import javax.persistence.EntityManagerFactory;
import javax.sql.DataSource;
import java.util.Properties;

@Configuration
@EnableTransactionManagement
@EnableJpaRepositories(basePackages = {"com.testapp.ots.repository"})
public class PersistenceConfig {

    @Autowired
    Environment environment;

    @Bean(name = "datasource")
    public DataSource dataSource() {
        JndiDataSourceLookup dsLookup = new JndiDataSourceLookup();
        dsLookup.setResourceRef(true);
        return dsLookup.getDataSource("jdbc/postgres");
    }

    @Bean(name = "entityManagerFactory")
    public LocalContainerEntityManagerFactoryBean entityManagerFactory() {
        LocalContainerEntityManagerFactoryBean entityManagerFactory = new LocalContainerEntityManagerFactoryBean();
        entityManagerFactory.setDataSource(dataSource());
        entityManagerFactory.setPersistenceUnitName("postgres");
        entityManagerFactory.setJpaProperties(jpaProperties());
        entityManagerFactory.setJpaVendorAdapter(jpaVendorAdapter());
        entityManagerFactory.setJpaDialect(jpaDialect());
        return entityManagerFactory;
    }

    @Bean(name = "jpaVendorAdapter")
    public JpaVendorAdapter jpaVendorAdapter() {
        HibernateJpaVendorAdapter vendorAdapter = new HibernateJpaVendorAdapter();
        vendorAdapter.setDatabasePlatform("org.hibernate.dialect.PostgreSQL9Dialect");
        vendorAdapter.setGenerateDdl(true);
        vendorAdapter.setShowSql(true);
        return vendorAdapter;
    }

    @Bean(name = "jpaDialect")
    public JpaDialect jpaDialect() {
        return new HibernateJpaDialect();
    }

    @Bean(name = "transactionManager")
    public PlatformTransactionManager transactionManager(EntityManagerFactory entityManagerFactory) {
        JpaTransactionManager jpaTransactionManager = new JpaTransactionManager(entityManagerFactory);
        jpaTransactionManager.setDataSource(dataSource());
        jpaTransactionManager.setJpaDialect(jpaDialect());
        return jpaTransactionManager;
    }

    @Bean(name = "persistenceExceptionTranslation")
    public PersistenceExceptionTranslationPostProcessor exceptionTranslation() {
        return new PersistenceExceptionTranslationPostProcessor();
    }

    public Properties jpaProperties() {
        Properties properties = new Properties();
        properties.setProperty("hibernate.hbm2ddl.auto", environment.getProperty("hibernate.hbm2ddl.auto"));
        properties.setProperty("hibernate.dialect", environment.getProperty("hibernate.dialect"));
        properties.setProperty("hibernate.show_sql", environment.getProperty("hibernate.show_sql"));
        properties.setProperty("hibernate.format_sql", environment.getProperty("hibernate.format_sql"));
        properties.setProperty("hibernate.connection.charSet", environment.getProperty("hibernate.connection.charSet"));
        properties.setProperty("hibernate.cache.use_second_level_cache", environment.getProperty("hibernate.cache.use_second_level_cache"));
        properties.setProperty("hibernate.cache.use_query_cache", environment.getProperty("hibernate.cache.use_query_cache"));
        properties.setProperty("hibernate.cache.use_structured_entries", environment.getProperty("hibernate.cache.use_structured_entries"));
        properties.setProperty("hibernate.generate_statistics", environment.getProperty("hibernate.generate_statistics"));
        return properties;
    }
}

As a reference here is the XML configuration I used a few months back.

<?xml version="1.0" encoding="UTF-8"?>
<beans xmlns="http://ift.tt/GArMu6"
       xmlns:xsi="http://ift.tt/ra1lAU"
       xmlns:context="http://ift.tt/GArMu7"
       xmlns:jee="http://ift.tt/OpNaZ5"
       xmlns:tx="http://ift.tt/OGfeU2" xmlns:jpa="http://ift.tt/1iMF6wA"
       xsi:schemaLocation="http://ift.tt/OpNaZ5 http://ift.tt/1sC4L0N
        http://ift.tt/GArMu6 http://ift.tt/1jdM0fG
        http://ift.tt/OGfeU2 http://ift.tt/UJ63uf
        http://ift.tt/GArMu7 http://ift.tt/1tY3uA9
        http://ift.tt/1iMF6wA http://ift.tt/1jZdjKs">

    <context:annotation-config />

    <jpa:repositories base-package="net.jkratz.bloodpressure.api.repository" />

    <jee:jndi-lookup jndi-name="jdbc/BloodPressureDB" id="dataSource" expected-type="javax.sql.DataSource" />

    <bean id="entityManagerFactory" class="org.springframework.orm.jpa.LocalContainerEntityManagerFactoryBean">
        <property name="persistenceUnitName" value="BPPersistenceUnit" />
        <property name="dataSource" ref="dataSource" />
        <property name="jpaVendorAdapter" ref="jpaVendorAdapter" />
        <property name="jpaDialect" ref="jpaDialect" />
        <property name="packagesToScan">
            <list>
                <value>net.jkratz.bloodpressure.api.model</value>
            </list>
        </property>
        <property name="jpaProperties">
            <props>
                <prop key="hibernate.dialect">${hibernate.dialect}</prop>
                <prop key="hibernate.hbm2ddl.auto">${hibernate.hbm2ddl.auto}</prop>
                <prop key="hibernate.show_sql">${hibernate.show_sql}</prop>
                <prop key="hibernate.format_sql">${hibernate.format_sql}</prop>
                <prop key="hibernate.connection.charSet">${hibernate.connection.charSet}</prop>
            </props>
        </property>
    </bean>

    <bean id="jpaVendorAdapter" class="org.springframework.orm.jpa.vendor.HibernateJpaVendorAdapter">
        <property name="database" value="${jpa.vendor.database}" />
        <property name="showSql" value="${jpa.vendor.showSql}"/>
        <property name="generateDdl" value="${jpa.vendor.generateDdl}"/>
        <property name="databasePlatform" value="${jpa.vendor.databasePlatform}"/>
    </bean>

    <bean id="jpaDialect" class="org.springframework.orm.jpa.vendor.HibernateJpaDialect" />

    <bean id="transactionManager" class="org.springframework.orm.jpa.JpaTransactionManager">
        <property name="entityManagerFactory" ref="entityManagerFactory" />
        <property name="dataSource" ref="dataSource" />
        <property name="jpaDialect" ref="jpaDialect" />
    </bean>

    <tx:annotation-driven transaction-manager="transactionManager" />

</beans>