Combine water, lentils, ½ teaspoon salt, and bay leaf in a medium saucepan; bring to a boil. Reduce heat, and simmer 25 minutes. Remove from heat, do NOT drain, and set aside.
Heat 1 tablespoon oil in a large skillet over medium-high heat, swirling to coat pan. Add yellow onion and red onion and sauté, stirring occasionally, until golden brown, about 20 minutes. If onions start to cook too quickly, add about ¼ cup water to slow the cooking and allow caramelization. Add carrot, and rosemary, and sauté 10 minutes or until browned.
While vegetables cook, pierce sweet potato with a fork or knife several times, and place on a microwave-safe plate. Heat on high in the microwave about 5 minutes or until cooked through. Cut cooked sweet potato into 1-inch dice. Set aside.
Stir ½ teaspoon salt, tomato paste, and garlic powder into cooked veggies, and heat through 1 minute. Stir in wine, scraping pan to loosen browned bits. Bring to a boil; cover with aluminum foil, and reduce heat. Simmer 10 minutes or until vegetables are tender. Add lentil mixture and cooked sweet potato, and cook 2 minutes. Remove from heat; discard bay leaf, and stir in 1 tablespoon olive oil, basil, and pepper.
Garnish with additional rosemary and basil if desired.