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This is the standard of building design that is used throughout California and varies based on what climate zone the project is located in. When using this method of compliance the builder or installer is required to meet the efficiency standards for that climate zone. This can apply to things like furnace change-outs, replacing a few windows, or even building an entirely new residential home or building. When this method is used, each aspect of the design must exactly match the prescriptive requirements which means that there is no flexibility allowed in the design. Using the prescriptive approach can be very useful for smaller alterations as it speeds the process up and doesn't require as much documentation as the performance approach. 

This method is commonly used when the designer or architect wants more control over how the project is built. When using the performance approach designers can pick and choose the energy efficiency upgrades that they want installed in the building. If they choose to install a high efficiency water heater they may be able to reduce the amount of insulation in the walls. It's a balancing act. As long as the building meets or exceeds the required compliance margin, it will meet energy code standards. However if it falls short of the requirements, other measures will need to be added into the design to get it into compliance. This approach takes longer to model but is often the preferred method when it comes to optimized design and value engineering.