Catalyzes the first reaction in the catabolism of the alkaloid lupanine. It dehydrogenates lupanine, which can then be hydrated to produce 17-hydroxylupanine. 2 Fe(III)-[cytochrome c] + H2O + lupanine = 17-hydroxylupanine + 2 Fe(II)-[cytochrome c] + 2 H(+) Binds 1 PQQ group per subunit. Binds 1 heme c group covalently per subunit. kcat is 217 sec(-1) with lupanine as substrate and 11.8 sec(-1) with sparteine as substrate. Monomer. Belongs to the bacterial PQQ dehydrogenase family.