Vacuum breaker?
Pretty sure it's a vacuum breaker Take your picture to a plumbing supply house and ask for a replacement part. Installation is pretty straight forward if you can get the exact same part. IMO not worth rebuilding- if you canOn the cold water inlet, before the shutoff valve, a drain tube that runs outside has a pressure valve inline between the main supply and outside. Is this needed? And why? The valve is leaking cold water outside and needs replacing.
Although not the preferred method- it is legal here and apparently there too. T&P will release to the outside assuming there is no floor drain or sink to receive discharge in the basement.Ayuh,... I don't think that pressure relief valve is legal, nor Right either...
It should be plumbed to Down, to the floor, 'n Not Up, 'n to the outside...
The story was told to me this way: If there was a fire somewhere in the neighborhood and firefighters had to use a pumper truck, the suction on the line could collapse (shrivel) your hot water tank if you did not have a vacuum breaker.It's a vacuum breaker. Reason behind it is to prevent water contamination. If there was a fire somewhere in the neighbourhood and firefighters had to use a fire hydrant, a city main broke, etc, there would be a big pressure drop in the city's pressure- water goes high to low pressure- it would siphon your hot water tank into the citys water supply.