. a lot of finger pointing but little action tonight on a debt deal, we look at the potential fallout if there is no agreement in washington. and word tonight that the two berkeley graduates being held in iran may be set free as soon as tonight. and project suspended, the complaint that led pg&e to halt work near the scene of the san bruno explosion. complete bay area coverage starts right now, this is ktvu

area channel 2 action news at 6:00. >> good evening, i'm ken wayne, conflict reporting out of washington on the progressive any is being made on raising the nation's debt ceiling. senate minority leader was confident it would happen, while harry reid says no progress has been made. it is 9:00 of course this is the look at the senate. earlier today the house rejected a budget plan offered up by the senate. we have been monitoring developments, they tell us how the lack of a deal could affect all of us. >> reporter: there are just three days left to reach a deal or places like this federal building could see problems very soon, despite the problem in washington today there is some hope that congress will beat the deadline. >> the rules are not to spend it and the bill is not passed. >> reporter: the republican

controlled house house of representatives rejected the plan. they say that house they are rejecting the deal. >> it takes into consideration the objectives that republicans had. there is no revenue, there are cuts. >> reporter: it would raise the debt ceiling by 2 trillion, republicans say it cuts too deeply into defense spending, yet g.o.p. leaders are expressing confidence. >> in spite of our differences we are dealing with responsible people who want this crisis to end as quickly as possible. and i'm confident it won't. >> let me just add -- you know our country is not going to default for the first time in history. that is not going to happen. >> reporter: i talked with the california senator barbara boxer from washington today. and she is not so optimistic. >> never in our history have we ever seen the full faith and credit of the united states been held hostage to one

party's far extreme wing. that is what is happening now. >> reporter: one source said a lack of a deal could harm an already difficult economy. >> and the treasure rate would be higher, mortgage rates, for going forward, not dramatically perhaps but enough to make a difference to families already stretched financially. >> reporter: the next vote is set at pacific 10:00, when republicans say it will fail, live in oakland, ktvu news. and we want to show you exactly how much time is left for lawmakers to get a deal done, three days, two hours, 56 minutes and change. this clock is from the bipartisan center, the washington think tank founded by former senators doyle, and george mitchell to look for bipartisan solutions to party issues. >> and as the clock ticks down, president obama warned that a government default would have a serious financial impact all across the country. >> a lower credit rating could be a tax increase on everybody.

we would all pay higher interest rates on credit cards. >> the pentagon is also bracing for a potential default. the head of of the joint chiefs of staff told troops in afghanistan he would not say whether they will be paid if the debt limit is not raised. some people here in the bay area say they are worried about how a default could affect their own finances. and they say they are angry that lawmakers can't seem to reach a compromise. >> it would be frustrating to me if i had to pay more interest on what i am currently paying. >> some people are saying social security, all the -- the programs that help people, who are unable to help themselves. >> reporter: i would like to see them all kicked out. i hope that we have the biggest recall, one source says. and get rid of the trash that we have in there now. >> reporter: the people we spoke with said they believe a lot of what is happening right now is political posturing, and

that the debt ceiling will be raised at the last minute. for up to the minute news on the debt showdown in washington, d.c., be sure to go to our website at ktvu and click on the debt ceiling tab. and hours away from a court ruling. family members say a hearing for shane bauer and josh josh fattal is set to take place in iran, less than five hours from now. tomorrow is the second anniversary of their arrest, the two say they went accidentally into iran borders while hiking. iran accused them of spying. others say they hope they will be released on humanitarian grounds. >> we hope that finally after so many delays josh and shane will be freed as they approach their final hearing. >> shane bauer's fiancee, sarah shourd there in the glasses was

at the rally outside the iranian nation. iranian authorities released her last september for health reasons. now to san bruno where pg&e today quickly suspended a project to examine a six-year- old pipeline after neighbors there complained about the smell of gas. the utility was putting a camera inside that pipe, which was abandoned in the '50s. the public utilities commission says it wants to inspect the wells as part of the probe into last year's deadly explosion into san bruno. the old pipe was once connected to the pipe that blew up in september. neighbors say crews would be out today but they were surprised by the strong odor. >> we didn't know we would smell gas. >> he -- >> he said it was an old pipeline. >> reporter: the utility says there was no actual gas, but it says the chemical used to give natural gas, the smell still was in the pipe after 60 years.

pg&e says it will start the work up again next week after it gets the word out to neighbors. we are following developing news in the north bay where hazmat crews are called to a scene. the workers reported that a tank was leaking chemicals into a containment seal. about 9000 gallons have spilled so far. cal fire says they are leaking about five gallons a minute into the environment. a variety of departments are on the scene, monitoring the situation. so far there is no word of any injuries. and santa cruz police say they are looking at a rash of car break-ins that may lead to hate charges. last night vandals put words and symbols on there, slashing tires on other vehicles.

the higher concentration was a mile north of the boardwalk. police have no suspects, we'll have much mother more on the story at 10:00. and in hayward today, a car wash was held for the missing nursing student, michelle le, who was last seen two months ago at the hayward, kaiser hospital. her brother says the proceeds well be used to keep up the search for her. another fundraiser is scheduled for august 11. and authorities looking at a string of shooting that left four people hurt. one man was shot in the foot last night, walking up to a dwi checkpoint on san pablo avenue to get help. later, they found a teenager with a gunshot wound at east 15th and 10th avenue, and earlier, two victims were found as well near 56th avenue. and the recent violence has not gone unnoticed by oakland's

top cop. we learned more from the chief who recently announced a major reorganization plan. >> he was born in ohio. >> reporter: march 2009, a funeral for four of oakland's finest, and anthony batts, said i want to lead this department in oakland. and by the fall of 2009 he was, and now 20 months later? >> i still feel the passion for this community. >> reporter: one year into the job, the city's budget started to have an impact, officer layoffs, a failing radio system and a department under federal court over sight. and by early this year, the city of san jose was calling his name. >> i didn't look elsewhere, it came to me, came knocking on the door. and i will be perfectly honest, we had an agency where the focus was not on the police department. we had just laid off 25% of the police department, cars that didn't run. >> and out of nowhere, the chief brought on a new deputy chief, but not within the department, from the san

francisco police, the former interim police chief. >> he is not coming over to be the next chief, he has no interest in being one. >> they say he is the best crime analyst and will be doing that in oakland. that comes after they reorganized the department, with more staff in the field. >> this is the second week, one or two small problems. >> the suspects bothers the victims, we can watch them closer, we know where they are. it is more efficient. >> reporter: the chief says his frustration level is not as high as it once was. the radios are working, some officers are being rehired. and the passion to protect the community is growing every day. channel 2 action news. thousands of bees one neighborhood. the extreme action one family took today, just to walk to their car. and a pro basketball team coming to richmond. we'll have more on to tryouts that took place this morning.

and it doesn't get much cuter than this. graduation day at the san francisco zoo, what is next for the little penguins. and fall weather once again for today, i'll show you where the fog will be tomorrow. and thunderstorm chances in the sierra, and even where there could be a slight chance tomorrow

. one sacramento area neighborhood is just about bee- free tonight after having years of bug attacks. the area has become home to at least six hives of bees. well, the homeowner hired a worker to remove them yesterday, when the bees really began to swarm. one family heading out on vacation, take a look, they have to take extreme measures to keep from getting stunned. bundle up, and work with the

bucket to ward them off, long enough so they could get inside their car. and fulfilling a personal dream while working on community pride. we go inside the fierce competition for a spot on the bay area's newest professional sports team. >> reporter: 15 guys with the same goal. >> that is it, rotate next man. >> reporter: all competing for a shot at pro baseball. >> just to come out here and play hard -- >> i'll be thinking about just working hard, and making as many shots as possible. you know? and that is just work -- work hard, that is all you can do. >> reporter: the guys out here are trying out for the richmond rockets, one of the pro basketball teams nationwide nation that is part of the team. >> we're here with the rockets, trying to fulfill those spots. >> reporter: the team's first game starts soon.

the team ceo says that richmond is an ideal place for a hometown basketball team. >> nice working class community. full of great people. it is a great opportunity where there is no professional sports already. so we have great opportunities to come here and work. >> reporter: the richmond fire battalion chief erik newman came to watch them. >> it is not really the san francisco warriors, or the daily warriors, you have the san francisco rockets. >> reporter: and while some of the team's hopefuls had more experience than the others. many of them say if they don't make the team they will come back to watch it and support it. >> yeah, gives people something to do, to come to the game. >> it will be excellent, showing the positive part of richmond. and in petaluma, police say a man fell through the sky light of an elementary school he was allegedly breaking into, at grant elementary school just

before 4:00 this morning. officers say a group of men were breaking things on the roof of the school when one of them fell 15 feet through the sky light. he was hospitalized with moderate injuries, he and two others face felony vandalism charges. and it was anything but quiet inside san francisco's newest library this afternoon. dragon dancers led the way as the neighbors got their first look inside the branch library in leland avenue. after leasing the space, the neighborhood has a brand-new 9000 square foot facility. >> san francisco continues to show that we're the city that knows how -- that we know the tax dollars are spent for good reason, for good purpose, and we get something for it. >> the 13 million cost was funded by a bond measure passed by voters. the new library offers a larger collection, including many materials in chinese.

there are also special spaces for children and for public meetings. chevron posting record profits as oil and gas prices remain high. they reported 15 billion in profits for the first half of this year, nearly 3 billion higher than their previous six- month record, and their 7.7 billion quarterly earnings were the highest, the second highest in the company history. texas governor rick perry says he will make a decision about the republican run for president by labor day. he supports the constitutional amendment limiting marriage to a man and woman. but also said he supports the right for states to decide that issue on their own. perry added that his campaign would be about jobs, not gay marriage. there is concern tonight that the midwest heat wave may affect the price of tortias and other corn products, this

factory says the price of corn has doubled in the last year. they're worried about the price of the corn because of the heat wave, making corn even more expensive. they have to find ways to be more efficient to not raise prices on their products. two brothers died when their plane crashed in ohio, they were taking the plane on a test flight when the plane went down. the engine was having problems just before it crashed. the replica was built and certified by the faa, the crash is being investigated. and a wildfire burning for more than a week in san diego county fully contained tonight. the fire started july 21 and built 22 square miles of the area and the desert state park. investigators say the fire was caused by an arsonist, nobody was hurt, but the cost of the

fire is estimated at 15 million. and more coming up, mark it was pretty nice out there today. rather warm? >> yes, once the morning cloud cover burned off, showing mostly sunny skies for a portion of the bay area, temperatures in the 70s and 80s. right now, 175-miles to the east of san francisco with the thunderstorms developing once again, out to the sierra, especially right at south lake tahoe. and looking at the fog hugging a good portion of the coastline, the clouds are regrouping as we head into the overnight hours. tonight, the forecast story, fog increasing, clear skies inland. tomorrow, morning fog, partly cloudy skies, we'll stick with the scene with cool temperatures for the beaches and some warm numbers inland. overnight lows first thing tomorrow morning, most of the bay out in the 50s, the fog targeting the coast even up in the north bay valleys as well as the bay. could even see a few patches

inland. the garlic festival in gilroy tomorrow, the final day, should be beautiful. high clouds moving in. once again, the temperatures in gilroy, approaching the 80s, 85, and the sierra, happening again a repeat performance today. we're watching the moisture because it will increase tomorrow in the form of some upper level clouds moving into the bay area. so for tomorrow morning, cloud cover out there, partly cloudy skies, a batch of high clouds moving in. and then as we take it inland, the diablo range, for the higher elevations, there is a slight chance of afternoon thunderstorms, late tomorrow, the main impact is for us, humid out there and an increase in the high clouds, tomorrow morning, a batch of high clouds moving into the region, the afternoon hours. tomorrow morning at 7:00, low clouds, fog, 55 to right at 72.

and then partly cloudy skies by 4:00. there is the temperature range, not much from today, fairfield at 85. san jose in the upper 70s, and these temperatures will check in right at 3 or 4:00 tomorrow afternoon. here is a look ahead, the five- day forecast and temperatures, really no big changes showing up, no heat waves in fact maybe just up a few degrees as we head up into monday, tuesday's wednesday, warmer location inland of . on the warm side, upper 80s, you will notice the change tomorrow as you step out there, could feel a bit muggy. and the light breeze was nice, good for people out in berkeley today looking at the sky. the city's annual kite festival happened at the chavez park, showing a lot of food, art, music, and kites. if you missed out on the festival today -- kite festival

continues tomorrow, starting at 10:00 in the morning and lasts until five in the afternoon. and bay area penguins doing a march all the way home today. four male and one female penguins are back on the island at the san francisco zoo after graduating from fish school. the chicks spent four months learning how to swim and getting used to people. the zoo keepers said this batch did great. >> you know we don't really know what they're going to do, the pace at which they will move. whether or not they stay together, this group stayed at a casual pace for the entire march. >> the chicks home coming brings the penguins population on the island up to 49, they say this is the largest group of these type of penguins in north america. hey, pat, the giants are in

cincinnati tonight, bouncing back after last night's loss. >> and ending the nfl lockout. sources say they were looking at it today

. the nfl labor dispute may

soon officially be over. sources say there are now enough votes from nfl players to reif i the union and complete the collective bargaining agreement reached last week. the union will be required to negotiate items such as drug testing and player discipline. players from at least nine teams voted for recertification. and giants need help right now? >> yes, they do, after impressively taking a couple of games in philadelphia, the giants now stubbed their toes twice in cincinnati, after losing twice to the reds they started last night's game by giving up five runs in the first. they didn't exactly scorch the ball against bumgarner, but remember that play because it was repeated later. bumgarner just misses the ground allege heise's back, and

nfl personnel incident that began just after the nfl had a new collective bargaining agreement continued today. the raiders signed a local guy to sign up their start-up guy, jason campbell, he played at stanford. agreeing to a contract. edwards agreed as a starter for buffalo. edwards was waived by the bills in september, spending the rest of the year in jacksonville. still more not happening than happening with the 49ers right now. earlier this week they released quarterback clemens, today, 31- year-old clemens agreed to terms with the bengals. he agreed to the nfl season, in san francisco. and tonight a report that the players in the plaxico burress sweepstake. he is trying to sign on with a team after serving two years in prison on a gun possession charge. 49ers say that michael crab tree will be out four to six

weeks with a foot injury, more tonight at 10 on sports wrap. see you then. and coming up tonight on the 10:00 news, more video in the ktvu news room of the santa cruz neighborhood hit hard by vandals overnight. the disturbing messages left behind on several vehicles. also we have a crew on the way to the developing news in st. helena where there is a leak at a water treatment plant. >> 9000 gallons so far leaking. >> i'm heather holmes, we'll see you back here at 10

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