Location relative the faucet is OK.
Unless someone can point out a code article that supports the plan for not connecting the PIB ground to the cable to the panel, it looks like a bad plan to me. Your plan would have the service ground and the generator ground connected by a high impedance (Earth) path when the generator is connected.

As long as the 1.5 feet isn't directly below it where the stream of water would flow over it, it shouldn't be a problem.

As bus_driver alludes to for practical reasons, the NEC absolutely requires that the additional ground rod installed for the generator be also bonded to the main house ground.

Thanks Gents,

Re faucet: No, the faucet is below and to the side but I didn't know if there was a code requirement for distance.

Re: Ground & Bond. Thanks to you both; it's good to find the my brilliant idea is not so smart.

So I read your combined posts as saying I should wire the PIB so that the receptacle is grounded to the PIB box AND the 10/3 ground AND a local ground for the generator. Is that right?

Thanks again.

This post was edited by jetson on Tue, Dec 31, 13 at 11:43

Connecting the 10/3 to the PIB and the inlet is really all that is required. The generator will be gounded to the house ground via the cord and nmb grounds.

If you just want to drive another ground rod, it is ok, but it MUST be connected to the original grounding system per code.

Thanks Auger01. What's required is what I want to do and I have read somewhat conflicting information

One method, probably not allowed, is to drive a new ground bar near the PIB, connecting one end of a ground wire to the ground terminal on the PIB and the other end to the ground lug on the generator (on and off as used)and pigtail the 10/3 NMB to the PIB terminal. Does that constitute connection to the "original grounding system" or is that not allowed since the equipment and the service grounds are shared from the PIB back through the NMB to the service panel? My guess is that's not allowed but it's easy.

A second method, which is probably the correct method, is to run a wire from the ground bar near the SE to the ground bar near the PIB (or generator) and then up to the generator ground lug and tie the NMB ground only to the PIB ground. That seems like a lot of effort if the local generator ground is not required. Or is it required but it's a requirement that almost nobody follows?

A third and easier method for me would be to run the ground wire from the generator lug, to the new ground bar and then inside to the cold water pipe that is supplying the outdoor faucet near the PIB. Again, I would tie the 10/3 NMB ground only to the PIB ground. Does that constitute connection to the "original grounding system"?

What I have read, and not claiming to be authoritative, is that if you purchase a generator that has both a grounded neutral and GFCI protected outlets, the outlets will 'pop' whenever it is connected to the house wiring. The alternatives are to either remove the bonded neutral from the GFCI generator (Honda has a kit for this). Or purchase a generator that does not have GFCI outlets. If you are using this generator for emergency use only, this should not pose a problem. If you are going to use the generator for job-site work with power tools and such, this would be a safety issue.

If there are any neutral-to-ground connections on the LOAD side of the GFCI, it will will trip. It's got nothing to do with the neutra-ground bond in the generator. The GFCI doesn't give a hoot what is going on the LINE side of it.

You can't use a generator with a GFCI to feed a panel that has a bonded neutral-ground (doesn't matter what kist you get). If you want it for feeding an interlock you need one without a GFCI.