It depends on which yard you make business with. If their #1 is called bare bright, it is probably why they downgraded it to #2. In my case, they're more tolerant.: my #1 needs to be large enough and to be clean (no insulation, no connectors, no paint, no burn, no soldering/no welding...), but it doesn't need to be sparkling too. If it doesn't respect #1 description, it will go as #2.
By tarnished, do you mean dull reddish brown or turquoise green?
Also, the price difference between #1 and #2 is generally not that much. Maybe 10/15 cents / lbs. It is as large as copper and brass or aluminum and shred.
By the way, if you have access to more than one yard in your area, it doesn't hurt to ask the other yards how they buy their copper and what they pay for.
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