Preheat oven to 350 degrees Fahrenheit. Grease 1 1/2-quart casserole. In large skillet over medium heat, fry bacon crisp, drain on paper towels; crumble and set aside. Pour off all but 2 tablespoons bacon drippings. In hot drippings, cook onions and green pepper until tender, stirring often, about 5 minutes.

Into measuring cup, drain tomatoes; add enough water to tomato liquid to make 1 3/4 cups liquid; cut up tomatoes. To onion mixture, add liquid, tomatoes, tomato sauce, sugar and salt; heat to boiling. Remove from heat and stir in rice; pour into casserole.

Cover casserole and bake 35 minutes or until rice is tender. Fluff rice with fork; sprinkle with cheese and bake 5 minutes. Garnish with bacon. Makes 6 servings.