In a large saucepan, cook the bacon for 6 to 8 minutes over low heat, or heat the oil until fragrant. Add the onion, bell pepper, and garlic and cook, stirring, until tender, 6 to 8 minutes. Add the remaining ingredients and cook over medium-high heat until all the water has been absorbed and small craters form over the surface of the rice, 10 to 15 minutes. Stir with a fork, cover, and cook over low heat until the rice is tender, 10 to 15 minutes. Discard the bay leaf and serve.
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