It seems to be adding what my local Photos file size is to my existing iCloud quota.
That is what happening. Photos will use the worst case estimate, that all photos in your current library are differnet from the photos in iCloud, when it is estimating the required storage for the additional upload. Are all your photos from your local library already in iCloud? Or does your local library contain photos that are not yet in iCloud?
If all most of your photos are already in iCloud, you can create a new, empty library and make that your iCloud Photos Library. Then your photos will download from iCloud to your new library. and no upload will be necessary. Just save your current library on an external drive, so you can export the most recent photos from that library, that might be missing in iCloud, and add the missing photos to your new iCloud photo library. If your current library contains projects (books, calendars, slideshows) you have to saye the current library, because the projects do not sync with iCloud and cannot be restored from iCloud Photo Library.If you did not yet upgrade to Photos 3.0 on High Sierra, you will also lose the named faces, because they do not sync back from iCloud with Photo 2 or 1.