New Leaders for New Schools, a nonprofit organization committed to training school principals, heads the Effective Practices Incentive Community (EPIC), an initiative that offers financial awards to effective educators. Through this initiative, New Leaders offers financial awards to educators in two urban school districts and a consortium of charter schools. New Leaders contracted with Mathematica Policy Research to help design the methods for identifying effective schools and teachers. The approach used for each partner differs, depending on the priorities of the partner and the type of information available to measure school and teacher performance. This report presents the methods used to identify effective schools and teachers for a consortium of over 140 charter schools in 17 states and the District of Columbia during the second year of this project. This year's model differs from that of last year in four respects. First, the authors used a shrinkage method to help ensure that schools (and teachers) with small numbers of students in their model were not overrepresented at the top (and bottom) of the resulting performance measures. Second, they added teacher-level estimates for charter schools. Third, they estimated models using two years of performance data rather than just one. Finally, they changed the treatment of schools that cover multiple grade spans. Last year, those schools had multiple chances for winning awards (one for each grade span). This year, they altered their model so each school had only one chance of getting an award. More details on these changes are presented in the discussion of this year's methods. A section on Technical Details of the Value-Added Model is appended. (Contains 2 tables, and 7 figures, and 26 footnotes.)