As far as alternates being automatically offered after declines -- if you read the instructions given for the school administrators using the research portal: http://www.nserc-crsng.gc.ca/Students-Etudiants/ResearchPortalInfo_eng.asp -- it doesn't appear to be automated. They actually have to manually make offers to alternates. So it's possible that some schools wait the 21 days then send out all alternate offers at once.
I'm starting my Master's in Chemical Engineering this fall. I have no research experience from my undergrad. What is the best method of preparing for this? Would reading journals that relate to the area that I will be doing research be helpful?