Can Level 2+ techs receive an email when something is assigned to their tech group?

I don't believe so as the option to mass email level techs is defined at that level  so you can have it set to email all level 2 Techs when it comes into level 2, but not because it came into level 1.

Thank you. That's what I thought, but I wanted to make sure I wasn't missing something.

You might be able to use an action rule to accomplish this.