Here is a template I used to remove the material. Basically you need to shave off an inch from the top, and square off the corners. You cannot easily take 1/2" off the top and bottom as the metal wiring channel is in the bottom.
I suppose though you could easily cut the channel with a multi-tool, but there is no reason to over complicate things. Shaving 1" off the top still leaves enough room for the new lights to overlay the hole.
As well, if you lowered the lights, you would have to relocate the license plate holder, and you might then end up with the old license plate holes showing.
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