diff --git a/greenwave/policies.py b/greenwave/policies.py
index de4f2016..e75f6d56 100644
--- a/greenwave/policies.py
+++ b/greenwave/policies.py
@@ -606,6 +606,8 @@ def _get_sub_policies(self, policy, subject):
             logging.exception('Unexpected Koji XMLRPC fault with code: %s', err.faultCode)
             error = f'Koji XMLRPC fault due to: \'{err.faultString}\''
             raise BadGateway(error)
+        except greenwave.resources.KojiScmUrlParseError as err:
+            return [], [FailedFetchRemoteRuleYaml(subject, remote_policies_urls, err.description)]
         except Exception:
             logging.exception('Failed to retrieve policies for %r', subject)
             error = 'Unexpected error while fetching remote policies'
diff --git a/greenwave/resources.py b/greenwave/resources.py
index c9debd26..cc8c58a2 100644
--- a/greenwave/resources.py
+++ b/greenwave/resources.py
@@ -169,6 +169,13 @@ class NoSourceException(RuntimeError):
     pass
 
 
+class KojiScmUrlParseError(BadGateway):
+    """
+    Exception raised when parsing SCM revision from Koji build fails.
+    """
+    pass
+
+
 @cached
 def retrieve_koji_build_target(task_id, koji_url: str):
     log.debug('Getting Koji task request ID %r', task_id)
@@ -256,7 +263,7 @@ def retrieve_scm_from_koji_build(nvr: str, source: str, koji_url: str):
 
     rev = url.fragment
     if not rev:
-        raise BadGateway(
+        raise KojiScmUrlParseError(
             'Failed to parse SCM URL "{}" from Koji build "{}" at "{}" '
             '(missing URL fragment with SCM revision information)'.format(source, nvr, koji_url)
         )
diff --git a/greenwave/tests/test_policies.py b/greenwave/tests/test_policies.py
index a6772809..2423007d 100644
--- a/greenwave/tests/test_policies.py
+++ b/greenwave/tests/test_policies.py
@@ -21,7 +21,7 @@
     TestResultFailed,
     OnDemandPolicy
 )
-from greenwave.resources import ResultsRetriever
+from greenwave.resources import ResultsRetriever, KojiScmUrlParseError
 from greenwave.safe_yaml import SafeYAMLError
 from greenwave.subjects.factory import create_subject
 from greenwave.waivers import waive_answers
@@ -747,6 +747,43 @@ def test_get_sub_policies_multiple_urls(tmpdir):
                 assert decision.answers[0].subject.identifier == subject.identifier
 
 
+def test_get_sub_policies_scm_error(tmpdir):
+    """
+    Test that _get_sub_policies correctly returns an error to go in
+    the response - but doesn't raise an exception - when SCM URL parse
+    fails.
+    """
+
+    nvr = '389-ds-1.4-820181127205924.9edba152'
+    subject = create_subject('redhat-container-image', nvr)
+
+    serverside_fragment = dedent("""
+        --- !Policy
+        id: "taskotron_release_critical_tasks_with_remoterule"
+        product_versions:
+          - rhel-8
+        decision_contexts:
+          - osci_compose_gate1
+          - osci_compose_gate2
+        subject_type: redhat-container-image
+        rules:
+          - !RemoteRule {}
+        """)
+
+    p = tmpdir.join('gating.yaml')
+    p.write(serverside_fragment)
+    with mock.patch('greenwave.resources.retrieve_scm_from_koji') as scm:
+        scm.side_effect = KojiScmUrlParseError("Failed to parse SCM URL")
+        policies = load_policies(tmpdir.strpath)
+        results = DummyResultsRetriever(
+            subject, 'baseos-ci.redhat-container-image.tier0.functional')
+        decision = Decision('osci_compose_gate1', 'rhel-8')
+        decision.check(subject, policies, results)
+        assert answer_types(decision.answers) == ['failed-fetch-gating-yaml']
+        assert not decision.answers[0].is_satisfied
+        assert decision.answers[0].subject.identifier == subject.identifier
+
+
 def test_redhat_container_image_subject_type():
     nvr = '389-ds-1.4-820181127205924.9edba152'
     rdb_url = 'http://results.db'
diff --git a/greenwave/tests/test_retrieve_gating_yaml.py b/greenwave/tests/test_retrieve_gating_yaml.py
index ff365c0a..05b06289 100644
--- a/greenwave/tests/test_retrieve_gating_yaml.py
+++ b/greenwave/tests/test_retrieve_gating_yaml.py
@@ -5,10 +5,11 @@
 
 import pytest
 import mock
-from werkzeug.exceptions import BadGateway, NotFound
+from werkzeug.exceptions import NotFound
 
 from greenwave.resources import (
     NoSourceException,
+    KojiScmUrlParseError,
     retrieve_scm_from_koji,
     retrieve_yaml_remote_rule,
 )
@@ -114,7 +115,7 @@ def test_retrieve_scm_from_build_with_missing_rev(app, koji_proxy):
         }
     }
     expected_error = 'missing URL fragment with SCM revision information'
-    with pytest.raises(BadGateway, match=expected_error):
+    with pytest.raises(KojiScmUrlParseError, match=expected_error):
         retrieve_scm_from_koji(nvr)