What's this thing, and how should I fix. PRV Valve

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Drewbdoo

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Hi, I'm in a 1960's house and have some mold growing near the main pipe that enters the house.
Looks kinda black. It's fresh growth, a water guy turned a spigot that leaked after he left and now the mold is on the pipes and spigot.

Couple questions. What's the circled thing?
2014-06-10_08-26-34_422.jpg

And any tips to fix this situation?

I'm very new, to cleaning (blackish) mold and plumbing.
 

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Hey, wait a minute.

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