The Department of National Development [II] was created on 20 December 1977 by Executive Council Meeting No 104 (PSB Minute No 1977/79) (Commonwealth Gazette, No S289, 20 December 1977).  
The Department assumed most of the functions of the abolished Department of National Resources (CA 1957) and took the function of 'decentralisation' from the Department of Environment, Housing and Community Development (CA 1954).

A press statement issued on 19 December 1977 gave the following explanation for the establishment of the new department:

 "The functions of this Department reflect the Government's intention
 that resources be devoted as a matter of priority to the development
 of a national energy plan. In addition to the fundamental tasks of
 geodesy, mapping and mineral and energy resources assessment,
 performed by the Division of National Mapping and the Bureau of
 Mineral Resources, Geology and Geophysics, the Department will have
 responsibility for energy planning and research, exploration policy,
 water resources and electricity, and matters relating to the
 processing and distribution of oil and gas.
 
 "The Minister for National Development will be responsible for all
 bodies which currently report to the Minister for National
 Resources, with the exception of the Joint Coal Board and the
 National Coal Research Advisory Committee. Ministerial
 responsibility for these bodies will be transferred to the Minister 
 for Trade and Resources (CA 2477). Nuclear commercial functions of
 the Australian Atomic Energy Commission will also become the
 responsibility of the Minister for Trade and Resources, all other 
 aspects being allocated to the Minister of National Development
 [II].
 
 "It has also been decided that responsibility for urban and regional
 planning and development, including decentralisation and growth
 centres, should be transferred to the new Department of National
 Development [II] from the Department of Environment, Housing and
 Community Development. Responsibility for the Albury-Wodonga
 Development Corporation, the Ministerial Council on the Development
 of Albury-Wodonga and the Decentralisation Advisory Board will be
 transferred to the Minister for National Development [II] from the
 Minister for Environment, Housing and Community Development."

The functions of the new Department, as outlined in the Administrative Arrangements Order issued on 20 December 1977 (Commonwealth Gazette, No S291) were:

 National energy planning and research
 Minerals exploration and resource assessment
 Water resources and electricity
 Geodesy and mapping
 Decentralisation

The Acts administered by the Department were:

 Albury-Wodonga Development Act 1973
 Albury-Wodonga Development (Financial Assistance) Act 1973
 Atomic Energy Act 1953
 Blowering Water Storage Works Agreement Act 1963
 Derby Jetty Agreement Act 1962
 Gladstone Power Station Agreement Act 1970
 Growth Centres (Financial Assistance) Act 1973
 Julius Dam Agreement Act 1974
 Menindee Lakes Storage Agreement Act 1963
 New South Wales Grant (Flood Mitigation) Act 1971
 New South Wales Grant (Gwydir River Dam) Act 1969
 New South Wales Grant (Namoi River Weirs) Act 1976
 Petroleum Search Subsidy Act 1959
 Petroleum (Submerged Lands) Act 1967
 Petroleum (Submerged Lands)(Exploration Permit Fees) Act 1967 
 Petroleum (Submerged Lands)(Pipeline Licence Fees) Act 1967  
 Petroleum (Submerged Lands)(Production Licence Fees) Act 1967 
 Petroleum (Submerged Lands)(Registration Fees) Act 1967
 Petroleum (Submerged Lands)(Royalty) Act 1967, except to the extent 
  to which they are administered by the Minister for the Northern 
  Territory
 Pipeline Authority Act 1973
 Queensland Grant (Bundaberg Irrigation Works) Act 1970
 Queensland Grant (Clare Weir) Act 1974
 Queensland Grant (Dawson River Weirs) Act 1973
 Queensland Grant (Kinchant Dam) Act 1973
 Queensland Grant (Maraboon Dam) Act 1968
 Queensland Grant (Proserpine Flood Mitigation) Acts
 Queensland Grant (Ross River Dam) Act 1974
 River Murray Waters Act 1915
 Seas and Submerged Lands Act 1973
 Snowy Mountains Hydro-electric Power Act 1949
 South Australia Grant (Lock to Kimba Pipeline) Act 1973
 South Australia Grant (Tailem Bend to Keith Pipeline) Act 1969 
 States Grants (Water Resources Assessment) Acts 
 Tasmania Grant (Cressy-Longford Irrigation Works) Act 1969
 Tasmania Grant (The Mount Lyell Mining and Railway Company Limited) 
  Act 1977
 Urban and Regional Development (Financial Assistance) Act 1974, in 
  so far as it is applicable, to growth centres
 Victoria Grant (King River Dam) Act 1969
 Victoria Grant (Millewa Pipelines) Act 1972
 Victoria Grant (River Murray Salinity) Act 1968
 Victoria Grant (Seymour Flood Mitigation) Act 1975
 Weipa Development Agreement Act 1965
 Western Australia Agreement (Ord River Irrigation) Act 1968
 Western Australia (Northern Development) Agreement Act 1963

The Department gained the following functions and legislation during its lifetime:

On 23 February 1978 it gained from the Department of Trade and Resources (CA 2477), the Coal Research Assistance Act 1977 and Liquid Fuel (Defence Stocks) Act 1949

On 28 September 1978, National Development [II] gained responsibility for soil conservation and the related legislation, the State Grants (Soil Conservation) Act 1974, from the Department of Environment, Housing and Community Development (CA 1954); and the Petroleum (Ashmore and Cartier Islands) Act 1967 and the Petroleum (Submerged Lands) legislation in so far as it related to areas adjacent to the Northern Territory and the Ashmore and Cartier Islands from Department of the Northern Territory [II] (CA 1958).

On 5 December 1978 following the abolition of the Department of Environment, Housing and Community Development, National Development [II] became responsible for the functions of urban planning and development and local government and related legislation:

 Cities Commission (Repeal) Act 1975
 Land Commission (Financial Assistance) Act 1973
 Sewerage Agreements Acts
 Urban and Regional Development (Financial Assistance) Act 1974.

The Department lost the following legislation during its lifetime:  

On 23 February 1978 the Department lost the Tasmania Grant (The Mount Lyell Mining and Railway Company Limited) Act 1977 to the Department of Finance (CA 2140).

On 1 June 1978 the Department lost portion of the administration of the Atomic Energy Act 1953 to the Department of Trade and Resources (CA 2477).

On 21 February 1979, the Department lost part of the administration of the Urban and Regional Development (Financial Assistance) Act 1974 to the Department of Home Affairs [III] (CA 2474)

On 8 December 1979, the name of the Department of National Development [II] was changed to the Department of National Development and Energy (CA 2979) (Commonwealth Gazette, No S259, 8 December 1979). 

Minister to the Department was:
 
20 Dec 1977 -  8 Dec 1979: Hon Kevin Eugene Newman (CP 230)

Secretary to the Department was:

20 Dec 1977 -  8 Dec 1979: A J Woods


Historical agency address
Tasman House, Hobart Place, Canberra City

Legislation administered
Creation: Council Meeting No. 104 (PSB Minute No. 1977/79) of 20 December 1977
Abolition: Executive Minute No. 67 of 8 December 1979