How do I use Python and lxml to parse a local html file?

If the file is local, you shouldn't be using requests -- just open the file and read it in. requests expects to be talking to a web server.

with open(r'C:\Users\...site_1.html', "r") as f:
    page = f.read()
tree = html.fromstring(page)

You can also try using Beautiful Soup

from bs4 import BeautifulSoup
f = open("filepath", encoding="utf8")     
soup = BeautifulSoup(f)
f.close()

There is a better way for doing it: using parse function instead of fromstring

tree = html.parse("C:\Users\...site_1.html")
print(html.tostring(tree))