What is this??
As for the clear tube my guess, pressure relief.
As for the venting ----- failed! Dryer vent piping is not an acceptable means of venting a gas appliance such as a water heater. You have no draft diverter on that vent either, you need to get a pro to look at that venting situation or do some research and fix it.
Is there any other pressure relief on the tank? if there is that would be good, as the one in the picture is purely pressure where-by you need both temperature and pressure relief.
When its all said and done there is usually more said than done
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