A bill entitled the "Federal Land Exchange Facilitation Act of 1986".

Amends the Federal Land Policy and Management Act of 1976 to require the Secretaries of the Interior and of Agriculture to promulgate regulations relating to the exchange of land or land interests, including the timing of appraisals and the submission of appraisals in disagreement to binding arbitration. Requires regulations governing appraisals to reflect nationally recognized appraisal standards and the differences between acquisition appraisals and transfer appraisals.

Permits each Secretary to exchange land or interests of approximately equal value if to do so would be in the public interest and expedite the exchange.

Authorizes appropriations for FY 1988 through 1997 for land exchange activities.

States that lands acquired through exchange shall be given the same status as the Federal lands exchanged for such lands.

States that the Alaska Native Claims Settlement Act and the Alaska National Interest Lands Conservation Act shall remain unaffected by this Act.