Good afternoon Red, good question, here's my response, hope it helps and keeps you safe from harm.
WOWWWWWWWWWWWWWWw there's always a ton of opinions when an electrical or legal question is asked, some maybe right ?? some maybe wrong ?? BUT THIS ONE IS ALL OVER THE PLACE .. .
DISCLAIMER its been years since I retired as an Electrical Power Distribution Design Engineer and I'm rusty on the codes and some things have changed, but to the best of my recollection NO WARRANTY here's my electrical power engineer's opinion and recollection.
1) There's a good chance the 220 volt water heater HAS NO NEUTRAL ran to it but ONLY two Hots plus an Equipment GroundING Conductor (typically bare/green). Ifffffffffffffffffff so (as I suspect) see below .
2) For a 120 Volt receptacle there must be a true Neutral AND DO NOTTTTTTTTTTT TRY TO USE THE water heaters (typically bare/green) Equipment GroundING Conductor as a substitute Neutral !!!!!!!!! That's a serious code violation plus can create a safety hazard !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Neutral is NOTTTTTTTTT the same nor should be substituted or vice versa as an Equipment GroundING Conductor !!!!!!!!!!!
BOTTOM LINE A)
A 120 volt 2 pole 3 wire grounding NEMA 5-15R or NEMA 5-20R receptacle MUST have a Hot, a true Neutral, an Equipment GroundING Conductor. Even an old style 2 pole 2 wire 120 volt receptacle (without a third wire ground) requires a Hot and a NEUTRAL......... DO NOTTTTTTTTT USE AN EQUIPMENT GROUNDING CONDUCTOR FOR A NEUTRAL
BOTTOM LINE B)
If (as I suspect) your 220 volt water heater is 220 ONLY (IE NO NEUTRAL) and ONLY has two hots L1 & L2 plus a bare/green Equipment GroundING Conductor DO NOTTTTTTTTTTT tap off one of its Hots (L1 or L2) and its bare/green Equipment GroundING Conductor to feed a 120 Volt receptacle
In addition there are other potential code violation and safety issues having to do with "Tap Rules", Proper overcurrent protection issues,,,,,,,And approved receptacle location issues that can prevent you from doing what you propose.
My best professional (albeit retired and rusty) electrical engineers advice is DO NOTTTTTTTTTTT DO THIS especially if there's NO Neutral ran to your water heater...
Where fire and life safety is at risk please DO NOT rely on lay opinions but instead consult trained professional electricians and engineers and local utility and any authority LEST YOU BURN YOUR HOUSE DOWN OR OR GET SOMEONE ELECTROCUTED
You posted "some say its safe" Ask yourself Is it worth risking your life or your home on some saying its safe ?????
However I believe a mans home is his castle and he should be free to do as he pleases and I support anyones right to do as they like in their home.... YOUR HOUSE YOUR LIFE YOUR CHOICE not mine or anyone here
God Bless take care and best wishes
John T BSEE,JD Long retired electrical power distribution design engineer so DO NOT take my word for any of this consult the NEC and trained current practicing professionals......
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