TPM summarizing WaPo:

The Obama administration is "leaning toward" revising a centerpiece of its second term agenda, a proposal to regulate gas emissions from new power plants, in order to bolster its standing against potential legal challenges.

Just to put this in context, in 2007 the Supreme Court ruled that the EPA was failing in its job to regulate carbon. Six years later, under a Democratic administration, they are still dragging their feet.

By the way, this was supposed to be the leverage for Cap & Trade. You get the EPA running on this Day 1 of Obama's first term, and you use it as a bargaining chip to pass a law that isn't as restrictive as just setting hard limits, which is what the EPA has the power to do.

Related: Obama signals to Republicans that he is serious about cutting entitlements. Why do we bother with elections?