diff --git a/cms/envs/test.py b/cms/envs/test.py
index cf27e957bd..a42b73336a 100644
--- a/cms/envs/test.py
+++ b/cms/envs/test.py
@@ -42,7 +42,8 @@ from lms.envs.test import (  # pylint: disable=wrong-import-order
     REGISTRATION_EXTRA_FIELDS,
     GRADES_DOWNLOAD,
     SITE_NAME,
-    WIKI_ENABLED
+    WIKI_ENABLED,
+    XBLOCK_RUNTIME_V2_EPHEMERAL_DATA_CACHE,
 )
 
 
@@ -177,6 +178,12 @@ CACHES = {
     'course_structure_cache': {
         'BACKEND': 'django.core.cache.backends.dummy.DummyCache',
     },
+    'blockstore': {
+        'KEY_PREFIX': 'blockstore',
+        'KEY_FUNCTION': 'common.djangoapps.util.memcache.safe_key',
+        'LOCATION': 'edx_loc_mem_cache',
+        'BACKEND': 'django.core.cache.backends.locmem.LocMemCache',
+    },
 }
 
 ############################### BLOCKSTORE #####################################
@@ -276,12 +283,6 @@ TEST_ELASTICSEARCH_USE_SSL = os.environ.get(
 TEST_ELASTICSEARCH_HOST = os.environ.get('EDXAPP_TEST_ELASTICSEARCH_HOST', 'edx.devstack.elasticsearch710')
 TEST_ELASTICSEARCH_PORT = int(os.environ.get('EDXAPP_TEST_ELASTICSEARCH_PORT', '9200'))
 
-############################# TEMPLATE CONFIGURATION #############################
-# Adds mako template dirs for content_libraries tests
-MAKO_TEMPLATE_DIRS_BASE.append(
-    COMMON_ROOT / 'lib' / 'capa' / 'capa' / 'templates'
-)
-
 ########################## AUTHOR PERMISSION #######################
 FEATURES['ENABLE_CREATOR_GROUP'] = False
 
diff --git a/common/test/problem.html b/common/test/problem.html
deleted file mode 100644
index 0c63e205e0..0000000000
--- a/common/test/problem.html
+++ /dev/null
@@ -1,96 +0,0 @@
-<!-- 
-  common/test/problem.html
-  Placeholder template for openedx content_library tests -->
-<%page expression_filter="h"/>
-<%!
-from django.utils.translation import ngettext, gettext as _
-from openedx.core.djangolib.markup import HTML
-%>
-
-<%namespace name='static' file='static_content.html'/>
-<h3 class="hd hd-3 problem-header" id="${ short_id }-problem-title" aria-describedby="${ id }-problem-progress" tabindex="-1">
-  ${ problem['name'] }
-</h3>
-
-<div class="problem-progress" id="${ id }-problem-progress"></div>
-
-<div class="problem">
-  ${ HTML(problem['html']) }
-  <div class="action">
-    <input type="hidden" name="problem_id" value="${ problem['name'] }" />
-
-    <div class="problem-action-buttons-wrapper">
-      % if demand_hint_possible:
-      <span class="problem-action-button-wrapper">
-          <button type="button" class="hint-button problem-action-btn btn-link btn-small" data-value="${_('Hint')}" ${'' if should_enable_next_hint else 'disabled'}>${_('Hint')}</button>
-      </span>
-      % endif
-      % if save_button:
-      <span class="problem-action-button-wrapper">
-          <button type="button" class="save problem-action-btn btn-link btn-small" data-value="${_('Save')}">
-              <span aria-hidden="true">${_('Save')}</span>
-              <span class="sr">${_("Save your answer")}</span>
-          </button>
-      </span>
-      % endif
-      % if reset_button:
-      <span class="problem-action-button-wrapper">
-          <button type="button" class="reset problem-action-btn btn-link btn-small" data-value="${_('Reset')}"><span aria-hidden="true">${_('Reset')}</span><span class="sr">${_("Reset your answer")}</span></button>
-      </span>
-      % endif
-      % if answer_available:
-      <span class="problem-action-button-wrapper">
-          <button type="button" class="show problem-action-btn btn-link btn-small" aria-describedby="${ short_id }-problem-title"><span class="show-label">${_('Show answer')}</span></button>
-      </span>
-      % endif
-    </div>
-    <div class="submit-attempt-container">
-      <button type="button" class="submit btn-brand" data-submitting="${ submit_button_submitting }" data-value="${ submit_button }" data-should-enable-submit-button="${ should_enable_submit_button }" aria-describedby="submission_feedback_${short_id}" ${'' if should_enable_submit_button else 'disabled'}>
-          <span class="submit-label">${ submit_button }</span>
-      </button>
-
-      % if submit_disabled_cta:
-        % if submit_disabled_cta.get('event_data'):
-          <button class="submit-cta-link-button btn-link btn-small" onclick="emit_event(${submit_disabled_cta['event_data']})">
-            ${submit_disabled_cta['link_name']}
-          </button>
-          <span class="submit-cta-description" tabindex="0" role="note" aria-label="description">
-            <span data-tooltip="${submit_disabled_cta['description']}" data-tooltip-show-on-click="true"
-              class="fa fa-info-circle fa-lg" aria-hidden="true">
-            </span>
-          </span>
-          <span class="sr">(${submit_disabled_cta['description']})</span>
-        % else:
-            <form class="submit-cta" method="post" action="${submit_disabled_cta['link']}">
-              <input type="hidden" id="csrf_token" name="csrfmiddlewaretoken" value="${csrf_token}">
-              % for form_name, form_value in submit_disabled_cta['form_values'].items():
-                  <input type="hidden" name="${form_name}" value="${form_value}">
-              % endfor
-              <button class="submit-cta-link-button btn-link btn-small">
-                ${submit_disabled_cta['link_name']}
-              </button>
-              <span class="submit-cta-description" tabindex="0" role="note" aria-label="description">
-                <span data-tooltip="${submit_disabled_cta['description']}" data-tooltip-show-on-click="true"
-                  class="fa fa-info-circle fa-lg" aria-hidden="true">
-                </span>
-              </span>
-              <span class="sr">(${submit_disabled_cta['description']})</span>
-            </form>
-        % endif
-      % endif
-      <div class="submission-feedback ${'cta-enabled' if submit_disabled_cta else ''}" id="submission_feedback_${short_id}">
-        ## When attempts are not 0, the CTA above will contain a message about the number of used attempts
-        % if attempts_allowed and (not submit_disabled_cta or attempts_used == 0):
-          ${ngettext("You have used {num_used} of {num_total} attempt", "You have used {num_used} of {num_total} attempts", attempts_allowed).format(num_used=attempts_used, num_total=attempts_allowed)}
-        % endif
-        <span class="sr">${_("Some problems have options such as save, reset, hints, or show answer. These options follow the Submit button.")}</span>
-      </div>
-    </div>
-  </div>
-</div>
-
-<script>
-    function emit_event(message) {
-        parent.postMessage(message, '*');
-    }
-</script>
diff --git a/common/test/problem_ajax.html b/common/test/problem_ajax.html
deleted file mode 100644
index bbe365bd92..0000000000
--- a/common/test/problem_ajax.html
+++ /dev/null
@@ -1,16 +0,0 @@
-<!-- 
-  common/tests/problem_ajax.html
-  Placeholder template for openedx content_library tests -->
-<div id="problem_${element_id}" class="problems-wrapper" role="group"
-     aria-labelledby="${element_id}-problem-title"
-     data-problem-id="${id}" data-url="${ajax_url}"
-     data-problem-score="${current_score}"
-     data-problem-total-possible="${total_possible}"
-     data-attempts-used="${attempts_used}"
-     data-content="${content | h}"
-     data-graded="${graded}">
-    <p class="loading-spinner">
-        <i class="fa fa-spinner fa-pulse fa-2x fa-fw"></i>
-        <span class="sr">Loading&hellip;</span>
-    </p>
-</div>
diff --git a/common/test/video.html b/common/test/video.html
deleted file mode 100644
index ea6a54d994..0000000000
--- a/common/test/video.html
+++ /dev/null
@@ -1,122 +0,0 @@
-<!-- 
-  common/test/video.html
-  Placeholder template for openedx content_library tests -->
-<%page expression_filter="h"/>
-
-<%!
-from django.utils.translation import ugettext as _
-from openedx.core.djangolib.js_utils import (
-    dump_js_escaped_json, js_escaped_string
-)
-%>
-% if display_name is not UNDEFINED and display_name is not None:
-    <h3 class="hd hd-2">${display_name}</h3>
-% endif
-
-<div
-    id="video_${id}"
-    class="video closed"
-    data-metadata='${metadata}'
-    data-bumper-metadata='${bumper_metadata}'
-    data-autoadvance-enabled="${autoadvance_enabled}"
-    data-poster='${poster}'
-    tabindex="-1"
->
-    <div class="focus_grabber first"></div>
-
-    <div class="tc-wrapper">
-      <div class="video-wrapper">
-          <span tabindex="0" class="spinner" aria-hidden="false" aria-label="${_('Loading video player')}"></span>
-          <span tabindex="-1" class="btn-play fa fa-youtube-play fa-2x is-hidden" aria-hidden="true" aria-label="${_('Play video')}"></span>
-          <div class="video-player-pre"></div>
-          <div class="video-player">
-              <div id="${id}"></div>
-              <h4 class="hd hd-4 video-error is-hidden">${_('No playable video sources found.')}</h4>
-              <h4 class="hd hd-4 video-hls-error is-hidden">
-                  ${_('Your browser does not support this video format. Try using a different browser.')}
-              </h4>
-          </div>
-          <div class="video-player-post"></div>
-          <div class="closed-captions"></div>
-          <div class="video-controls is-hidden">
-              <div>
-                  <div class="vcr"><div class="vidtime">0:00 / 0:00</div></div>
-                  <div class="secondary-controls"></div>
-              </div>
-          </div>
-      </div>
-    </div>
-
-    <div class="focus_grabber last"></div>
-
-    % if download_video_link or track or handout or branding_info:
-    <h3 class="hd hd-4 downloads-heading sr" id="video-download-transcripts_${id}">${_('Downloads and transcripts')}</h3>
-    <div class="wrapper-downloads" role="region" aria-labelledby="video-download-transcripts_${id}">
-        % if download_video_link:
-        <div class="wrapper-download-video">
-            <h4 class="hd hd-5">${_('Video')}</h4>
-            <a class="btn-link video-sources video-download-button" href="${download_video_link}">
-                ${_('Download video file')}
-            </a>
-        </div>
-        % endif
-        % if track:
-        <div class="wrapper-download-transcripts">
-            <h4 class="hd hd-5">${_('Transcripts')}</h4>
-            % if transcript_download_format:
-            <ul class="list-download-transcripts">
-                % for item in transcript_download_formats_list:
-                    <li class="transcript-option">
-                        <% dname = _("Download {file}").format(file=item['display_name']) %>
-                        <a class="btn btn-link" href="${track}" data-value="${item['value']}">${dname}</a>
-                    </li>
-                % endfor
-            </ul>
-            % else:
-            <a class="btn-link external-track" href="${track}">${_('Download transcript')}</a>
-            % endif
-        </div>
-        % endif
-        % if handout:
-        <div class="wrapper-handouts">
-            <h4 class="hd hd-5">${_('Handouts')}</h4>
-            <a class="btn-link" href="${handout}">${_('Download Handout')}</a>
-        </div>
-        % endif
-        % if branding_info:
-        <div class="branding">
-            <span class="host-tag">${branding_info['logo_tag']}</span>
-            <a href="${branding_info['url']}"><img class="brand-logo" src="${branding_info['logo_src']}" alt="${branding_info['logo_tag']}" /></a>
-        </div>
-        % endif
-    </div>
-    % endif
-</div>
-% if cdn_eval:
-<script>
-  //TODO: refactor this js into a separate file.
-  function sendPerformanceBeacon(id, expgroup, value, event_name) {
-    var data = {event: event_name, id: id, expgroup: expgroup, value: value, page: "html5vid"};
-    $.ajax({method: "POST", url: "/performance", data: data});
-  }
-  var cdnStartTime;
-  var salt = Math.floor((1 + Math.random()) * 0x100000).toString(36);
-  var id = "${id | n, js_escaped_string}";
-  function initializeCDNExperiment() {
-    sendPerformanceBeacon(id + "_" + salt, ${cdn_exp_group | n, dump_js_escaped_json}, "", "load");
-    cdnStartTime = Date.now();
-    $.each(['loadstart', 'abort', 'error', 'stalled', 'loadedmetadata',
-                    'loadeddata', 'canplay', 'canplaythrough', 'seeked'],
-                    function(index, eventName) {
-      $("#video_" + id).bind("html5:" + eventName, null, function() {
-        timeElapsed = Date.now() - cdnStartTime;
-        sendPerformanceBeacon(id + "_" + salt, ${cdn_exp_group | n, dump_js_escaped_json}, timeElapsed, eventName);
-      });
-    });
-  }
-  $("#video_" + id).bind("initialize", null, initializeCDNExperiment);
-  if ($("#video_" + id).hasClass("is-initialized")) {
-    initializeCDNExperiment();
-  }
-</script>
-% endif;
diff --git a/openedx/core/djangoapps/content_libraries/tests/test_runtime.py b/openedx/core/djangoapps/content_libraries/tests/test_runtime.py
index 62798f97a5..cf9da3dff3 100644
--- a/openedx/core/djangoapps/content_libraries/tests/test_runtime.py
+++ b/openedx/core/djangoapps/content_libraries/tests/test_runtime.py
@@ -6,7 +6,7 @@ from gettext import GNUTranslations
 
 from completion.test_utils import CompletionWaffleTestMixin
 from django.db import connections
-from django.test import LiveServerTestCase, TestCase, override_settings
+from django.test import LiveServerTestCase, TestCase
 from django.utils.text import slugify
 from organizations.models import Organization
 from rest_framework.test import APIClient
@@ -182,8 +182,6 @@ class ContentLibraryRuntimeTestMixin(ContentLibraryContentTestMixin):
 
 
 @requires_blockstore
-# EphemeralKeyValueStore requires a working cache, and the default test cache doesn't work:
-@override_settings(XBLOCK_RUNTIME_V2_EPHEMERAL_DATA_CACHE='blockstore')
 class ContentLibraryRuntimeBServiceTest(ContentLibraryRuntimeTestMixin, TestCase):
     """
     Tests XBlock runtime using XBlocks in a content library using the standalone Blockstore service.
@@ -191,8 +189,6 @@ class ContentLibraryRuntimeBServiceTest(ContentLibraryRuntimeTestMixin, TestCase
 
 
 @requires_blockstore_app
-# EphemeralKeyValueStore requires a working cache, and the default test cache doesn't work:
-@override_settings(XBLOCK_RUNTIME_V2_EPHEMERAL_DATA_CACHE='blockstore')
 class ContentLibraryRuntimeTest(ContentLibraryRuntimeTestMixin, BlockstoreAppTestMixin, LiveServerTestCase):
     """
     Tests XBlock runtime using XBlocks in a content library using the installed Blockstore app.
diff --git a/openedx/core/djangoapps/xblock/runtime/runtime.py b/openedx/core/djangoapps/xblock/runtime/runtime.py
index 444ba33488..ba06df6da5 100644
--- a/openedx/core/djangoapps/xblock/runtime/runtime.py
+++ b/openedx/core/djangoapps/xblock/runtime/runtime.py
@@ -241,6 +241,8 @@ class XBlockRuntime(RuntimeShim, Runtime):
                 anonymous_user_id=self.anonymous_student_id,
             )
         elif service_name == "mako":
+            if self.system.student_data_mode == XBlockRuntimeSystem.STUDENT_DATA_EPHEMERAL:
+                return MakoService(namespace_prefix='lms.')
             return MakoService()
         elif service_name == "i18n":
             return ModuleI18nService(block=block)