While I can't provide a definitive answer, since I'm not the manufacturer, nor do I, or have I ever worked for the manufacturer. I can try to provide a logical, fact based answer that may be close to the truth.
Heat Expansion
When water is heated, the pressure in a closed system increases. If the pressure increases beyond the tripping point of the T&P valve on the heater, the valve should open to release some of the pressure. This release usually involves very hot water and steam, released in a controlled manner. If you install a pressure relief valve set lower than the T&P trip value, The relief valve will open long before the T&P valve possibly releasing hot water and steam in an uncontrolled way. This could lead to injury to occupants, or damage to property.
It's possible that your area has not adopted the use of backflow prevention, so this extra pressure can simply be released back through the distribution system. In which case, you'll probably never see either relief valve ever open. If you do have backflow prevention in place, it's possible that this relief valve could open under "normal" conditions. The International Residential Code (IRC), and Uniform Plumbing Code (UPC) recommend pressure between 40 - 80 psi.
IRC 2009
P2903.3 Minimum pressure. Minimum static pressure (as determined by the local water authority) at the building entrance for either
public or private water service shall be 40 psi (276 kPa).
P2903.3.1 Maximum pressure. Maximum static pressure shall be 80 psi (551 kPa). When main pressure exceeds 80 psi (551 kPa), an
approved pressure-reducing valve conforming to ASSE 1003 shall be
installed on the domestic water branch main or riser at the connection
to the water-service pipe.
So even under "normal" conditions, your 75 psi valve could open.
Controlling Expansion in a Closed System
If backflow prevention has been used in your home, you are required by code to install a device for controlling pressure.
IRC 2009
P2903.4 Thermal expansion control. A means for controlling increased pressure caused by thermal expansion shall be installed
where required in accordance with Sections P2903.4.1 and P2903.4.2.
P2903.4.1 Pressure-reducing valve. For water service system sizes up to and including 2 inches (51 mm), a device for controlling
pressure shall be installed where, because of thermal expansion, the
pressure on the downstream side of a pressure-reducing valve exceeds
the pressure-reducing valve setting.
P2903.4.2 Backflow prevention device or check valve. Where a backflow prevention device, check valve or other device is installed
on a water supply system using storage water heating equipment such
that thermal expansion causes an increase in pressure, a device for
controlling pressure shall be installed.
While a relief valve may fit this description, the more common method is to install an expansion tank.
Safely Releasing Pressure
There are requirements for releasing pressure by way of a discharge pipe, which this valve may not meet.
IRC 2009
P2803.6.1 Requirements for discharge pipe. The discharge piping serving a pressure-relief valve, temperature relief valve or
combination valve shall:
- Not be directly connected to the drainage system.
- Discharge through an air gap located in the same room as the water
heater.
- Not be smaller than the diameter of the outlet of the valve served
and shall discharge full size to the air gap.
- Serve a single relief device and shall not connect to piping serving
any other relief device or equipment.
- Discharge to the floor, to the pan serving the water heater or
storage tank, to a waste receptor or to the outdoors.
- Discharge in a manner that does not cause personal injury or
structural damage.
- Discharge to a termination point that is readily observable by the
building occupants.
- Not be trapped.
- Be installed to flow by gravity.
- Not terminate more than 6 inches (152 mm) above the floor or waste
receptor.
- Not have a threaded connection at the end of the piping.
- Not have valves or tee fittings
- Be constructed of those materials listed in Section P2905.5 or
materials tested, rated and approved for such use in accordance
with ASME A112.4.1.
Lead Safe
After doing a bit or research, I stumbled upon the NSF website which provides a lot of valuable information. It turns out, the valve mentioned in the question is indeed certified to meet ANSI/NSF 61, ANSI/NSF 61 Annex G, and California's AB 1953.
Which means it is safe for use with potable water (at least as far as lead is concerned). If you check the valve and/or packaging, you'll likely notice the NSF mark.
If you have any other fittings or products you'd like to check out, you can Search for NSF Certified Products.
tl;dr
This valve is not designed (or was not tested) to meet the codes and standards for a pressure relief valve on, or near a water heater. So the manufacturer was forced to mark the fitting "Not for use with water heaters".
There are three reasons a T&P valve opens. Temperature, pressure, or a faulty valve.
Temperature
If the water in the heater reaches a temperature of 210 degrees F, the T&P valve will open and release water until the water temperature is reduced. As water is removed through the T&P valve, cold water enters through the inlet and mixes with the water in the tank. When enough water has been mixed to reduce the temperature, the T&P valve will close. If temperature causes the release, there will likely be a lot of water released.
Pressure
Most T&P valves are set to open at 150 psi. If the pressure in the tank reaches this level, the valve opens until the excess pressure is released. If pressure caused the release, you'll usually see about 1 cup of water per 10 gallons in the tank (per release).
Temperature or Pressure
To figure out if the trip is being caused by temperature or pressure, you'll have to monitor both.
Test water pressure?
To test water pressure, you'll need a pressure gauge. They sell threaded gauges, that can attach to a standard hose bib. This will work well if you have laundry hookups.
- Wait until the water heater is actively heating the water (you can expedite this step by using hot water, so go take a shower or something).
- Connect the gauge to any hot water outlet, and open the tap.
Monitor the pressure through the end of the heating cycle. If you get a gauge with a "lazy hand", it will stay at the highest pressure achieved. That way you won't have to stand by and watch the gauge the whole time.
Test water temperature
To test the temperature, all you need is a thermometer.
- Wait until the heater has just finished running.
- Open the nearest hot water tap, and let it run for a minute of two.
- Use the thermometer to measure the water temperature.
Causes and fixes
Without knowing more information about the installation, it's very difficult to speculate as to why this is happening. Determining why the valve is opening (temperature, pressure, or some other reason), is the first step to diagnosing the problem. Once you understand why the valve is opening, it will make it much easier to figure out the cause of the problem.
Best Answer
The plumbing is not "incorrect" per se. The only thing we try to have is the bottom end of the piping from the TPR valve exposed vs plumbed to a drain so you can see if something is awry with the TPR valve.
It is a curious thing what is coming off the cold water line. What ever is coming off your cold water line is surely designed to release and drain like the TPR valve in its own way for its own reasons.
You TPR valve plumbing that is visible (which is in question) is fine though.