It is not far-fetched to see how this will be used to determine if you should be watched:
The info will be shared with other government agencies (they have said this.)
If you are a "yellow" (and thousands, tens of thousands or hundreds of thousands will be "yellow", nobody knows the real number) there will in all probability be a machinery to spy on you, which means wiretaps and internet taps and monitoring all your friends and associates.
If you are a "red" you can't even travel. So a bureaucrat is empowered to prohibit you from traveling.
And this is only going to be done for non-citizens? First of all, I don't believe it. Second, that makes no sense because the Powers That Be know that many suspects are citizens. Third, how do we know that? Everything about this program is a secret.