1. In a heavy Dutch oven, heat the olive oil and cook the sausage over medium-heat until nicely browned (about 5 minutes). With a slotted spoon, transfer the sausage to a plate.

2. Sauté the onion in the remaining oil for about 5 minutes until it begins to soften. Add the bell pepper, celery and garlic and continue cooking, stirring occasionally, for another 8 to 10 minutes. Stir in the sausage, rice, chili powder, salt and several grinds of fresh pepper. Deglaze the pan with sherry, allowing it to come to a boil. Add diced tomatoes (including their juices), chicken broth and bay leaf, and return to a boil.

3. Reduce heat and simmer for 25 minutes, until liquid is absorbed. Turn off the heat and let stand, covered, for about 10 minutes. Fluff the rice with a fork, sprinkle with green onion and serve.