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The EZRain uses a 3-prong plug, with the ground pin serving as earth ground. As long as you connect it through a 3-prong grounded outlet, you should be OK.
No, the ground wire of your transformer does not need to be connected to any of the terminals on the EZRain valve/transformer connector. Most transformers for irrigation controllers only have 2 wires for connection to the controllers. There is a potential of 24V AC between them.