Guys, it's early for me, but, since the TS is not a switched neutral, would the neutral-ground bond at the generator also not need to be disconnected ?
Either remove the neutral to ground bond at the generator or use a transfer switch that switches the neutral.
I agree that there is no need for the EGC to be run from the transformer. There needs to be a grounded to grounding bond in the service disconnect per 250.24(C).
You guy?s are helpful! I think the transfer switch should be moved to replace the bus gutter. The problem with this installation is all the stuff ahead of the service disconnects bond. The earth path may be insignificant but soft hands touching a hose bib and earth will conduct some, I?m concerned with touch voltage as well anywhere along the parallel path. What do you think, what?s the best way to fix this?
The only time there would be a touch or step potential is under fault conditions and the only way to remove that potential is to clear the fault. Under normal conditions the only voltage that is available to drive a step or touch potential is the voltage drop on the grounded conductor. If that voltage drop is high enough to be a hazard, there is a problem.