Jim,
The 2nd valve has been bugging me all day. My initial thought was that it was a trap primer. I dismissed that when I enlarged and lightened the photo and saw how it was plumbed in a closed loop.
There would be no way for it to function. Water effectively has to flow through the valve for it to discharge any water to the trap. But...still it looked a lot like a watts primer, although not one of theirs.
I believe I finally found it. I'm 99% certain it's a Zurn trap primer presumably for that floor drain. See
http://www.zurn.com/operations/light...lation/LC6.pdf .
With that wierd loop, pressure will be the same either side, no matter what happens at the water heater intake, and I just don't see how it could possibly function.
My final vote then...a trap primer plumbed incorrectly.