It should be in the normally open position. The way it works is, the valve is spring/counterweight loaded to be normally open. When the engine starts and produces vacuum, a Thermal Vacuum Switch senses it is cold and supplies vacuum to close the valve, forcing hot exhaust gas to pass through the intake manifold under the carb, getting it hot faster to aid fuel atomization. When the TVS senses coolant at about 100º it cuts off the vacuum and vents the EFE valve to atmosphere, allowing it to open. The EFE works in conjunction with the THERMAC heated air cleaner which heats intake air to around 100º also. This is important because the stock carb is jetted for use with hot intake air. Thus, a capped EFE vacuum line and missing THERMAC foil exhaust manifold tube would result in slow cold carb warmup and rough running which would be very noticeable in winter, not so much in summer.