Is the national guard still running by points for promotion from E-4 to E-5?

Can't speak for your state. No points in Wisconsin, a paper board, and order of merit list. Can't be on the list if you're flagged. If you designate that you want to be considered for promotion state wide you will be bumped to the bottom of the list if you refuse a promotion.

The point system is still used. This pt failure, was it a one time event or consistently failing? On a side note you should keep copies of everything. Make an I love me book. All papers, awards and even hand receipts go in to it. Cover your ass.

Does he have more points than you?

So they say they don't need you as in they don't need your physical being and rank/MOS? Then they are sending an APFT Failure to the board? Is that APFT failure a solid failure with documentation to back that failure up? If so......stop.....don't pass go....go straight to your chain with this issue.