Tomcat is not working correctly, Why?

Question

I have downloaded a binary version of tomcat server to my windows machine. After that I have unzipped it to C drive and set tomcat home and it's path as follows: -

TOMCAT_HOME = C:\Program Files\Apache\Tomcat\apache-tomcat-8.5.6
Path = C:\Program Files\Apache\Tomcat\apache-tomcat-8.5.6\bin

While I am trying to run it through command line as

catalina run

It gives the following error

The CATALINA_HOME environment variable is not defined correctly
This environment variable is needed to run this program

Therefore I changed TOMCAT_HOME to CATALINA_HOME. In this case there is error but it gives following output

Using CATALINA_BASE:   "C:\Program Files\Apache\Tomcat\apache-tomcat-8.5.6"
Using CATALINA_HOME:   "C:\Program Files\Apache\Tomcat\apache-tomcat-8.5.6"
Using CATALINA_TMPDIR: "C:\Program Files\Apache\Tomcat\apache-tomcat-8.5.6\temp"
Using JRE_HOME:        "C:\Program Files\Java\jdk1.8.0_101"
Using CLASSPATH:       "C:\Program Files\Apache\Tomcat\apache-tomcat-8.5.6\bin\bootstrap.jar;C:\Program Files\Apache\Tomcat\apache-tomcat-8.5.6\bin\tomcat-juli.jar"
java.util.logging.ErrorManager: 4
java.io.FileNotFoundException: C:\Program Files\Apache\Tomcat\apache-tomcat-8.5.6\logs\localhost_access_log.2016-10-17.txt (Access is denied)
... ... ...
... ... ...

I have 2 questions and those are: -

1. Is it mandatory to put CATALINA_HOME instead of TOMCAT_HOME?
2. How do I grant for access log file(s)?