A bill to improve the management of the National Forests through amendment of certain public laws affecting public land exchange and withdrawals, and for other purposes.

(Reported to House from the Committee on Agriculture with amendment, H. Rept. 96-1467 (Part I))

Allows the Secretary of Agriculture to adjust the titles of land acquired by the Government by exchange of public domain land or resources and subject to the Secretary's control.

Amends the Federal Power Act of 1920 to specify that any public land included in any proposed power project and reserved from entry, location, or other disposal pursuant to the filing of a preliminary permit application shall be unconditionally restored to the status such lands would have had if the reservation had not occurred, if: (1) no license application or new preliminary permit application for a project that would use or occupy such lands has been accepted for filing within five years from the expiration date of the preliminary permit or the date of a final Federal Energy Regulatory Commission order denying a preliminary permit; and (2) the Secretary of Agriculture or the Secretary of the Interior has given notice to the Commission of the intention to initiate action to restore such reserved lands to their prior status, and the Commission has not within 60 days from the date of such notice issued notice to the appropriate Secretary that specified conditions have not been fulfilled.

Specifies that nothing in this Act shall authorize conveyance of Federal lands within the National Wilderness Preservation System.