(a) After August 31, 2013:
(1) a governmental entity with a population of 500,000 or more within the entity’s geographic boundary or service area may, under this subchapter, enter into contracts for not more than six projects in any fiscal year;
(2) a municipally owned water utility with a separate governing board appointed by the governing body of a municipality with a population of 500,000 or more may:
(A) independently enter into contracts for not more than two civil works projects in any fiscal year; and
(B) enter into contracts for additional civil works projects in any fiscal year, but not more than the number of civil works projects prescribed by the limit in Subdivision (1) for the municipality, provided that:
(i) the additional contracts for the civil works projects entered into by the utility under this paragraph are allocated to the number of contracts the municipality that appoints the utility’s governing board may enter under Subdivision (1); and
(ii) the governing body of the municipality must approve the contracts; and
(3) a governmental entity that has a population of 100,000 or more but less than 500,000 or is a board of trustees governed by Chapter 54, Transportation Code, may enter into contracts under this subchapter for not more than four projects in any fiscal year.
(b) For purposes of determining the number of eligible projects under this section, a municipally owned water utility with a separate governing board appointed by the governing body of the municipality is considered part of the municipality.