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It sounds like you're describing the EFE actuator which is part of the emissions system.
When I had my '78 L82, which was missing the AIR pump when I bought it, I eliminated the EFE, EGR and related plumbing and put on a plain thermostat housing and the car ran much better and cooler.
Since it sounds like someone has pretty much done all that but simply left the EFE in place even though it's non-functional.