The key to answering whether or not an entity is exempt from a regulation is to check the relevant definition(s) included in the code. The entity in this regulation is "every service station." However, while your link doesn't provide a definition of "service station," my link does:

open quote/
13650. "Service station," as used in this chapter, means any establishment which offers for sale or sells gasoline or other motor vehicle fuel to the public.
/end quote

The "prima facie" ("first face" or "first appearance") answer to your question is "no, Costco is not exempt." However, please be aware that Costco isn't obligated to provide free air and water if no purchase is made.

To file a complaint, per (d)(1) and (2) of the code (scroll toward the bottom), contact The Division of Measurement Standards of the Department of Food and Agriculture:

1) access the website at http://www.cdfa.ca.gov/DMS/;
2) under "Information" for "Consumers" click "How to File a Complaint"; and
3) scroll until you see "How to File a Service Station Air and Water Complaint." You may either complete the complaint form or call the toll-free complaint line. For either one, you'll need to have available the specifics such as store number, address, and date/time of the violation.

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Source(s):
California Business and Professions Code 13650, 13651, 13652
http://www.autoca.org/documents/B%20&%20P%2013650%20and%2013651.Restroo...

The Division of Measurement Standards of the Department of
Food and Agriculture
http://www.cdfa.ca.gov/DMS/

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