Operational Environmental Regulatory Compliance for Active Facilities
A Material Compliance Review (MCR) is a structured, professional evaluation of an operating facility's compliance with applicable federal, state, and local environmental regulations. Unlike a Phase I ESA — which focuses on historical land use and recognized environmental conditions related to property transactions — an MCR assesses the current operational practices of an active business to identify regulatory gaps, potential liabilities, and corrective actions needed to achieve and maintain compliance.
MCRs are conducted by PEC's experienced environmental professionals who understand both the regulatory landscape and the operational realities of industrial, commercial, and mixed-use facilities. The result is a clear, actionable report that protects your business, your investment, and your stakeholders.
PEC's Material Compliance Reviews are comprehensive and customized to the facility type, regulatory jurisdiction, and client objectives. Our standard MCR scope includes the following regulatory areas:
PEC's Material Compliance Review report is a professional, well-organized document designed to be used by buyers, sellers, lenders, legal counsel, and facility managers. It provides a clear picture of the facility's current compliance status and a roadmap for addressing any identified deficiencies.
| Feature | Phase I ESA | MCR |
|---|---|---|
| Primary Focus | Historical land use & Recognized Environmental Conditions (RECs) | Current regulatory compliance status of operating facility |
| Governing Standard | ASTM E1527-21 / All Appropriate Inquiries (AAI) | Applicable federal, state & local regulatory framework |
| Physical Sampling | No (non-intrusive) | No (records & document review only) |
| Permits Reviewed | Limited (historical only) | Comprehensive (all active permits & licenses) |
| Regulatory Interviews | Limited (agency database queries) | In-depth (agency contacts, inspection records) |
| Deliverable Type | Phase I ESA Report (ASTM format) | MCR Report with compliance gap matrix & action plan |
| Best Used For | Property acquisition, lending, real estate transactions | Business acquisitions, M&A due diligence, operational risk |
| Liability Protection | Innocent Landowner Defense (CERCLA) | Identifies compliance gaps before acquisition closes |
ASTM/AAI-compliant property history and reconnaissance assessment for real estate transactions.
Targeted subsurface sampling to confirm or rule out contamination identified in Phase I.
See all three tiers of PEC's Environmental Due Diligence Services in one place.