I think I may get it now. With a 30 amp load on that wire there would not be enough emf in some cases with some distances because of the reactance of the smaller wire, but with a 40 amp load that would not be a problem since it would overcome the voltage drop. Coils/inductance/load-of would probably be the same on the breakers in either case. ?? Thanks
P.S. Wouldn't it have to be a dedicated fixed load, since connecting a smaller 30 amp load to the same outlet would create the same problem? I think I may be still off base here.
Don't read so much into it. There's no safety related issue going on here.
This provision of the code is badly written, and if interpreted literally leads to absurd results, which you are now trying to explain with a physics driven rationale that is just not there.
The intent of the code, as others have noted, was to require that the equipment grounding conductor be upsized in circumstances where the current carrying conductors were increased in size due to voltage drop issues. (THAT's a legitimate safety issue, but not likely to be experienced with 8AWG Romex, since a #10 AWG equipment ground is normally adequate for up to and including a 60 amp overcurrent protective device, so it already "upsized" from a safety perspective.)
There are other reasons why conductors might be larger than "required", such as having excess material laying around, or leaving some margin in the branch circuit for possible future applications.
Consider the following scenario: farmer joe installs an air compressor drawing 31 amps. He installs 8AWG Romex with its 10AWG equipment ground, protected with a 40 amp breaker. The air compressor is only 20 feet from the panel, so there are no voltage drop issues. Everything is fine with the wire sizing, including the EGC.
The air compressor breaks down, and farmer joe has had a bad year. All he can afford now is a smaller compressor drawing 22 amps. He replaces the breaker with a 30 amp breaker, and uses the same branch circuit. The current carrying conductors are now "oversized" compared to what is required for his air compressor. Does he now need to increase the size of the EGC, even though he is drawing less current, and has a smaller amperage circuit breaker protecting the branch circuit? That would be an absurd result.