ednj, I think what your asking for is that you need to get a current copy of 70E. In it there is a chart(table), I think it is 130.something. It can give you a feel for what PPE is to be worn for what type of task is being preformed. Make no mistake, it best to work the equipment dead. I work in a power plant and we cannot always shut things off just because, however we make every effort to do so first. I know where your coming from, I dont always want to put the suit on unless there is no other way. Sometimes just putting on the head sock, flash shield, etc is a task when it's 98 degrees out with 98% humidity, and 120 in the plant,but I like my face the way it is.
As far as the level "2" goes they are refering to the level of PPE (flame retardent paints, shirts, etc) and not gloves. I hope that when you are saying double gloves you mean rubber with leather protectors. There are times when, and they are not often, that I need to remove my leathers to do a task. Remember leathers are a protector for the rubbers, not the insluator.
If the company you are doing this work for has done an arc flash study then you must follow the lables. I would put this on your boss to put it on the hospital of what rules they what you to follow, not the rep from the compressor company. He has brought up a good point to you but in all reality has no real say in what to follow.
Sorry about the spelling, hope this helps.