As of raising this question, Docker looks to be new enough to not have answers to this question on the net. The only place I found is this article in which the author is say
Note that in a docker-compose.yml file - you'll need to leave out the double-quotes:
docker-compose.yml
environment: - JVM_OPTS=-Xmx12g -Xms12g -XX:MaxPermSize=1024m
or
environment: - CATALINA_OPTS=-Xmx12g -Xms12g -XX:MaxPermSize=1024m