The primary purpose of the Jazz Build Engine is to invoke whatever automated process you want, and then capture the results (either the actual data, or a URL to the actual data) for publishing in the Jazz repository (as the "build results"). So the details of what that automated process does is determined by the tools invoked by that automated process, not be the Jazz Build Engine.
One way to control that automated process is through the Rational BuildForge product, and for testing you'd want to look at Rational Quality Manager. For BuildForge discussions, there is the Using BuildForge forum:
https://jazz.net/forums/viewforum.php?f=11
and for RQM discussions, there is the Using Quality Manager forum:
https://jazz.net/forums/viewforum.php?f=7

Rational is also looking at an agressive unification/acceleration of the whole cycle you describe below, under the "DevOps" initiative. For information on DevOps, take a look at:
http://www.ibm.com/software/rational/devops/

Cheers,
Geoff

When I am using RTC as my code repository, is there any point of view from Rational related to managing code, the build, and the release of the build from environment A (e.g. dev) to enviornment B (e.g. test). I am thinking I would be leveraging RTC Jazz Build Engine to automate this process but interested in someone else thought on this topic.

code->build->release package->environment(s)->testing

When I am using RTC as my code repository, is there any point of view from Rational related to managing code, the build, and the release of the build from environment A (e.g. dev) to enviornment B (e.g. test). I am thinking I would be leveraging RTC Jazz Build Engine to automate this process but interested in someone else thought on this topic.

code->build->release package->environment(s)->testing

If you're running RTC EE (Enterprise Extensions, System z or System i), there are features like packaging, deploying, promotion to support end to end lifecycle management. Check below links for details.
https://jazz.net/help-dev/clm/topic/com.ibm.team.build.doc/topics/c_deployments.html
https://jazz.net/help-dev/clm/topic/com.ibm.team.build.doc/topics/c_ee_z_promotion_builds.html

If you're running with LUW, check the links Geoff provided.