Involved in the biosynthesis of the sesquiterpenoid antibiotic albaflavenone. Catalyzes the two-step allylic oxidation of epi-isozizaene to albaflavenone. First carries out a non-stereo-specific oxidation of epi-isozizaene to give a mixture of the albaflavenol epimers ((5R)-albaflavenol and (5S)-albaflavenol), each of which can serve as substrate for the second oxidation to yield albaflavenone. This is quite different from most other P450s which catalyze regio- and stereospecific oxidation (PubMed:18234666, PubMed:19858213). In addition, displays a farnesene synthase activity with farnesyl diphosphate (FPP) as substrate (PubMed:19858213). (+)-epi-isozizaene + 4 H(+) + 2 O2 + 4 reduced [2Fe-2S]-[ferredoxin] = albaflavenone + 3 H2O + 4 oxidized [2Fe-2S]-[ferredoxin] (2E,6E)-farnesyl diphosphate = (E)-beta-farnesene + diphosphate (+)-epi-isozizaene + 2 H(+) + O2 + 2 reduced [2Fe-2S]-[ferredoxin] = (5R)-albaflavenol + H2O + 2 oxidized [2Fe-2S]-[ferredoxin] (+)-epi-isozizaene + 2 H(+) + O2 + 2 reduced [2Fe-2S]-[ferredoxin] = (5S)-albaflavenol + H2O + 2 oxidized [2Fe-2S]-[ferredoxin] (5R)-albaflavenol + 2 H(+) + O2 + 2 reduced [2Fe-2S]-[ferredoxin] = albaflavenone + 2 H2O + 2 oxidized [2Fe-2S]-[ferredoxin] (5S)-albaflavenol + 2 H(+) + O2 + 2 reduced [2Fe-2S]-[ferredoxin] = albaflavenone + 2 H2O + 2 oxidized [2Fe-2S]-[ferredoxin] Divalent metal cations. Mg(2+), Ca(2+) or Mn(2+) ions for farnesene synthase activity. kcat is 0.019 sec(-1) with farnesyl diphosphate (FPP) as substrate (in the presence of magnesium ions at 30 degrees Celsius and at pH 5.5). Optimum pH is between 7 and 8.2 for monooxygenase activity and between 5.5 and 6.5 for farnesene synthase activity. Homodimer. Disruption abolishes biosynthesis of both albaflavenone and the albaflavenols, but not epi-isozizaene. Both enzymatic and structural data demonstrate that CYP170A1 is a rare bifunctional enzyme having two distinct active sites within a traditional P450 polypeptide chain that individually catalyze two apparently unrelated biochemical reactions. Belongs to the cytochrome P450 family.