WASHINGTON (Reuters) - A group of 16 states led by California and environmental groups have dropped a lawsuit filed in 2022 that sought to block the U.S. Postal Service's plan to buy mostly gas-powered next-generation delivery vehicles.

Since the suit was filed, the Postal Service shifted from its initial plan to buy 90% gasoline vehicles and 10% EVs to now planning to buy mostly EVs. The California attorney general's office said on Thursday that the states and groups had decided it was in their best interest to dismiss the lawsuit "given USPS's commitment to rebuild its fleet with a majority of electric vehicles."