Following the "Energy Crisis" of the early 1970s, the Nation recognized the need to expand research and development activities involving alternative forms of energy, and to reorganize nuclear energy regulation. In 1975, the AEC was replaced by the Energy Research and Development Administration (ERDA), which was created to focus the federal government's energy research development activities into one unified agency, which was also to include AEC's nuclear energy defense activities. The Nuclear Regulatory Commission (NRC) was also created out of remaining parts of the AEC's mission. Chicago Operations Office became part of the new ERDA incorporating AEC's R&D functions, including basic research and nuclear power development, and an assortment of other federal agencies' fossil, solar and alternate energy research, development and demonstration activities.

Congress gave the new civilian Commission extraordinary power and independence to carry out its awesome mission. To provide the Commission exceptional freedom in hiring scientists and professionals, Commission employees were exempt from the Civil Service system. Because of the need for great security, all production facilities and nuclear reactors would be government-owned, while all technical information and research results would be under Commission control. The National Laboratory system was established from the facilities created under the Manhattan Project, and Argonne National Laboratory was one of the first laboratories authorized under this legislation as a contractor-operated facility dedicated to fulfilling the new Commission's mission.

Under ERDA, the Chicago Operations Office expanded its program support and project management responsibilities to include a number of new energy demonstration projects in the area of fossil energy, energy conservation, solar and renewable energy, nuclear and other technology areas. At the same time, Chicago's support for ERDA's growing basic science program also increased, as new facilities and new science initiatives were added. During this period, Chicago Operations was responsible for contracts, grants and collaborative initiatives being carried out in every state and many foreign nations.

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