What options are there available for have a Test instance of FME running in a Test environment that replicates production?

Hello!

If you need FME Desktop in your test environment, you could use a floating license or a trial license (if you don't need to use the test environment for more than 60 days). I have a floating license that I use on my Work Computer and on my Test VMs, and it works great.

I'd recommend you discuss this with your account manager at Safe Software or at your Reseller as this is normally something that they can help you accommodate.