Heat oil in a large skillet over medium-high heat. Add peppers and onion; cook, stirring occasionally, until softened, about 4 minutes. Add beef and cook, stirring to crumble, until lightly browned, about 5 minutes. Season with garlic and Italian seasoning and cook, stirring constantly, until fragrant, about 1 minute. Stir in tomato sauce, water, hoagie spread, and salt.

Bring to a boil over medium-high heat. Stir in rice until coated evenly with sauce. Cover, reduce heat to medium to maintain a simmer, and cook until rice and vegetables are tender, about 8 minutes, stirring once halfway through to prevent sticking.

Uncover, remove from heat, and sprinkle with shredded cheese. Re-cover and let sit until cheese melts, 1 to 2 minutes. Serve hot sprinkled with basil or parsley. Recipe developed by Julia Levy