Shredded paper (from a paper shredder) should go into a clear plastic bag. This bag should be included with (loose) singlestream recycling.
Put the bag (of shredded paper) into recycling containers at transfer stations.
For curbside recycling put the bag in the bin if it fits, or else set a larger bag on the ground, beside the recycling bin.
This should be the only item in plastic bags for singlestream recycling.